Governor's Office of Economic Development

For Immediate Release: Monday, October 22, 2001

For More Information: Mary Lehecka-Nelson, GOED, 773-5032

Phase 2 Solutions Picks Vermillion for Next Call Center;
Up to 250 New Jobs Will Help Displaced Gateway Workers

Pierre -- Gov. Bill Janklow delivered some welcome news to Vermillion today when he announced the location of Phase 2 Solutions, an Arizona-based provider of customer services for the wireless, travel, medical and distance learning industries.

"This is exactly the type of company we were hoping to attract to Vermillion," Janklow said. "This company will fill the void left by Gateway and will offer job opportunities to those Gateway employees," he said.

The company will create up to 250 jobs and will locate in the 18,000 square foot Gateway facility.

Training of new employees will begin as early as this week, Janklow said. "Training was a huge issue for Phase 2 and Vermillion really didn’t have adequate space to set up training terminals," he said. So the state and city pulled together to figure out a training location.

Phase 2 employees will travel to North Sioux City for specialized training. "It’s really a unique situation," Janklow said. "The Vermillion Development Company is leasing space in an old elementary school in North Sioux City. McLeod USA went in and set up temporary modem access and the state is loaning computer equipment and technical support," he said.

Larry Willett, president, said that Phase 2 is excited to have a presence in Vermillion. "We had a variety of other opportunities to locate elsewhere, but the trained and motivated workforce at the Gateway Center, and the cooperation of the State of South Dakota and the City of Vermillion tipped the scale," he said.

Willett said that timelines are still being formulated, but the company has identified about 95 positions to be filled immediately with another 105 positions to be filled during the course of the month of November. "Additional capacity will be utilized at the facility as other business is placed. Preferential hiring status will be offered to all former Gateway employees impacted by the shutdown. Despite economic uncertainties, Phase 2 is confident that it will enjoy additional growth in South Dakota," he said.

The community is also looking forward to continued growth. "The addition of a company like Phase 2 Solutions adds immensely to the positive business climate in Vermillion," said Mayor Roger L. Kozak. " Phase 2 Solutions will be an excellent fit into the community and its presence will strengthen other progressive growth-oriented activities already in motion. There is no doubt that this company will further improve Vermillion’s reputation as a great place to do business - a great place to live, to learn, and to work," he concluded. 

Phase 2 is a solution provider for a variety of companies desiring inbound customer service, outbound acquisition of both retail and business subscribers for wireless, cable, medical, distance learning and billing management services. The company was founded in 1994 by Rob Miller, CEO, and Willett as a wireless cellular service reseller. It quickly became the eight largest reseller in the nation, 

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