EarthLink agrees to buy New Edge

EarthLink said Tuesday that it agreed to buy closely held New Edge Networks of Vancouver, Wash., for about $144 million in cash and stock.

EarthLink Chief Executive Officer Garry Betty is expanding network-management services for small- and medium-size businesses as his company loses residential dial-up customers to competitors. New Edge, which provides high-speed Internet access to small companies, is expected to generate $120 million in sales this year, EarthLink said.

EarthLink, based in Atlanta, plans to operate New Edge as a separate unit in Vancouver and keep its 345 employees.

Federal Home Loan Bank

2nd quarter loss

was $15.7 million

The Federal Home Loan Bank of Seattle posted a $15.7 million net loss for the second quarter, down from net income of $25.5 million a year earlier, the bank said Tuesday. The report was delayed because of accounting and disclosure issues.

The Seattle bank ran into trouble last year with a mortgage-buying program it is now discontinuing. It has said profits will suffer from the earlier missteps.

Seattle Genetics

Cancer meeting

hears trial results

Seattle Genetics' experimental cancer treatment, SGN-30, shrunk or erased tumors in five out of 20 patients with a rare cancer of the immune system.

SGN-30, a monoclonal antibody, is being tested in a midstage trial on patients with systemic anaplastic large cell lymphoma who had not responded to other treatments. Tumors in five of six patients with the cutaneous form of the disease responded to SGN-30 in another trial.

In another report at the American Society of Hematology's annual meeting, concluded Tuesday, SGN-40 showed early signs of effect in its first human trials against non-Hodgkin's lymphoma and multiple myeloma.

CEO Clay Siegall said SGN-40 is "probably our most exciting agent" and the company plans to accelerate its development "in every way that we can."

Compiled from Bloomberg News and Seattle Times staff