02/05/03 SageGroup Announces a China Division to Help China-Related Companies

Alameda, CA - February 5, 2003 - SageGroup Strategies announces that it has formed a China Division to help China-related companies internationally, including within China and the USA. The focus is on complex situations, including troubled companies, American companies trying to do business in China, and Chinese companies trying to do business in the USA. SageGroup is the largest Professional Troubled-Company Specialist firm nationally and internationally, with over 40 offices throughout the United States plus pending offices in China.

"For over ten years SageGroup has been closely watching the continuing growth and development of China as the largest developing country within the world," stated Larry Lindsey, a SGS Managing Director and a Co-Manager of the new SGS China Division. "China is the fastest-growing major country in the world, averaging about 8% annual growth during the time we've been watching it, while the American, European, Japanese, and other major economies have greatly fallen behind. China also has by far the largest population in the world, with about 1.3 billion people. At the same time there are very large numbers of China-related companies that have major potentially-fatal problems. This includes: 1) American and other foreign companies trying to operate in China; 2) Chinese companies trying to operate in the USA and other foreign countries; and 3) Chinese companies trying to operate in China."

Lindsey continued, "Countries and companies throughout the world have been impressed by the rapidly-continuing expansion and evolution of China. There are tremendous opportunities for Chinese and foreign entities to work together well for mutual benefit. SageGroup wants to help to facilitate this process in various appropriate ways."

One major area is in focusing on the basic economic concept of international comparative advantage, where each country focuses much on its natural strengths in comparison to other countries. As one example, China has the ability to produce many labor-intensive and other products and services at a far lower cost than can be done by companies within the USA. As another example, both countries have technologies that are desired in the other country.

"Increasingly during recent years there have been major opportunities for American companies to increase profits by working with Chinese lower-cost/higher-value companies," adds Thomas Murray, a global supply chain operations expert and another SGS China Division Co-Manager. "During my recent latest trip to China I was pleased to see how much this tremendous overall China/USA opportunity has continued to grow. The SGS China Division is much involved in this area, both directly and through relationships in China and the USA."

Murray and Lindsey are two examples of the stiff criteria that the SGS China Division has set for its members. Both have many years of working with Chinese companies and Chinese governmental entities, with both having graduate university degrees majoring in international management and business. Murray also has an undergraduate degree in Asian studies, plus language skills in Mandarin, Cantonese, Japanese, French, and English.

SageGroup provides troubled China-related companies with its powerful large group of professionals, who are experts at helping troubled companies get out of trouble and move forward. SageGroup's staff includes over 600 highly-qualified specialists, such as:

• Financing and financial experts
• Troubled-company experts
• Turnaround experts
• Marketing specialists
• CPAs
• International business experts
• Attorneys
• Strategists
• Joint ventures, mergers, and acquisitions experts
• Technologists
• Corporate executives
• Industry specialists

SageGroup's staff has been involved in hundreds of difficult company situations, including:

• Refinancings
• Turnarounds
• Crisis management
• Debtor programs
• Spin-outs
• Restructurings and reorganizations
• Managed wind-downs and shut-downs