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Two factors prompted Paul Michels' decision to start a training publications business in Virginia Beach in 1984. "It was warmer than Chicago and I was hungry: I couldn't find another career path locally."

In the 15 years since, he's been amazed at the wisdom of that decision. Coastal Training Technologies Corp. publishes books, videotapes, multimedia interactive software, CD-ROMs and Internet-based training products for corporations and organizations.

It's a business that requires creativity and technical expertise, and Michels says he's found plenty of both in Hampton Roads. Because of the military presence in the region, Michels has located software programmers whose skills exceed his expectations.

"For the creative part of our business, we need good writers and computer graphics people. This area is often recognized more for its shipping and government expertise," says Michels, "but because of Landmark Communications, Regent University, Christian Broadcasting Network and the Family Channel, a lot of people with a creative bent have been drawn to the area. The quality of our people and therefore the quality of our products exceeds the ... national standard."

Michels says he doubts he could have done better in New York, Los Angeles or Chicago -- where he began his career in television.

After spending three years in Virginia Beach working for the government developing training tapes of naval shipyard trades, Michels thought the concept could work on a larger scale. So he began to make training tapes in his garage.

Coastal originally built its reputation on safety and environmental training tapes, but the company has since expanded into other areas. The human resources division covers management training and issues such as workplace diversity and sexual harassment. The coastal skills division provides training in industrial areas such as hydraulics, electricity and oil analysis. And the health care division trains health care workers on issues such as patient confidentiality and blood-work pathogens.

In 1993, Coastal added its clarity multimedia training system, which converts video programs to interactive CD-ROMs. Coastal says its trademarked "Real-Life Situation" programs provide true-to-life scenarios that force employees to consider what they would do or say in a specific set of circumstances. The programs also track the skills of each employee using the system, checking the employee's mastery of each topic.

The company's first foray into the international market occurred in 1994, when it launched Coastal Internacional to sell products primarily to the Latin American market.

Then, in January, the company entered into a marketing alliance with Video Arts, a company owned by British comic John Cleese. Under the agreement, Coastal will distribute existing and upcoming Video Arts training tapes in the United States and in the company's Latin American territories.

The other big news in January was the announcement that the company plans to expand its Virginia Beach facility. Coastal is integrating eight buildings into one in a $14 million investment that could create another 366 jobs. The expansion will include a new corporate headquarters, production studio and sound stage.

Business is good: Revenues in 1998 were up 31 percent on 1997, although Michels declined to reveal a dollar amount. "We built Coastal by producing one product at a time, says Michels. "We now have more than 2,400 products that we sell to companies and organizations all over the world."