SageGroup Strategies Completes Major Positive Reorganization To Facilitate Continued Proactive Rapid Growth and Development

Los Angeles, CA; New York City, NY; and Silicon Valley, CA -- May 1, 2005. SageGroup Strategies announces that it has completed a major positive reorganization to facilitate its continued proactive rapid growth and development nationally and internationally.

SOME BACKGROUND:
When SageGroup Strategies was formed 13 years ago by 23 co-founders, its 1992 Business Plan included the objective that SGS would become the largest Professional Troubled-Company Specialist firm in the USA and the world. The Plan included various strategies and action plans to accomplish this objective, and these have evolved over the years as SGS has rapidly progressed. Annually in December the Firm's management has reviewed the Firm's status, then made decisions as to refinements and improvements. And, each six years there has been a much deeper review, with major new developments.

During SGS's first six years it was primarily an USA West-Coast firm, with most of its clients, relationships, Associates, etc. being within this geographical region.

In 1998 and 1999 the senior 20 persons in SGS held a series of meetings and other discussions as to where the Firm was in regards to overall objectives. At that time the Firm had about 200 Senior and Junior Associates. Basic decisions included that the Firm would rapidly turnkey nationally, including with a management structure of five levels (Managing Directors, Senior Directors, Directors, Senior Associates, and Junior Associates).

During the past six years SGS has continued to grow and develop very rapidly. SGS has become the largest firm of its type both nationally and internationally, with over 600 Associates based in over 60 offices in the USA, Canada, Asia, and Europe. It has had many client successes during this period. (And, in the very complex troubled-company business environment with its many difficult problems and strong emotional and psychological factors, no SGS client has ever filed a lawsuit or a government complaint against the Firm.)

As are partly discussed by various SGS press releases posted to the SGS website www.SageGroupStrategies.com, SGS has proactively adjusted its organizational structure as it has grown, evolved, and strategically expanded into various niches of the troubled-company profession and marketplace. When SGS has obtained appropriate expertise and experts, it has formed Industry Divisions, Functional Divisions, Geographical Divisions, Liaison Groups, Councils, and other entities. And, it has developed strong relationships with complementary-services firms, financing entities, affiliated entrepreneurial companies, and others.

And, all of this background has led to the timely opportunity for another major SGS reorganization.

CURRENT MAJOR SGS REORGANIZATION
During 2004 and 2005 there have been a series of discussions and other steps by various senior persons within SGS. These have resulted in another major SGS reorganization so that the Firm can optimize its current overall status as the USA's/world's largest PTCS firm, while concurrently continuing its further rapid growth and development. These steps include:

A) SGS's Managing Council has now become the de facto CEO entity of the Firm nationally and internationally. Its members include the Firm's current Managing Directors, and this number is expected soon to grow. This Council formerly reported to SGS's Senior Council, which consists of the Firm's approximately 175 current senior-level Managing and Senior Directors. The Senior Council will continue to act as a senior-level advisory entity for the Firm.

B) SGS has now added a major new level of Associates and other entities on top of the rest of the Firm. This new level is called "Level Three" within the Firm, and it has even higher standards than the Firm already has in general. The "Level Three" designation is limited only to those SGS clients, strategic alliance partners, relationships, Associates, and other entities which have especially-strong financial and/or other promise. Level-Three Associates are limited to those who have demonstrated within SGS that they are proactive, entrepreneurial, high-integrity persons with the ability to act and interact on a positive team basis.

C) Because of the large number of troubled companies within the USA, the Firm has purposefully focused only on such companies as potential clients historically. However, as part of the Firm's continued expansion, SGS has recently been focusing more internationally, including as to Canada, Asia, and Europe. SGS has already opened some foreign offices in these areas, plus has developed various strategic alliances and other business relationships. And, as part of this, the SGS Alameda Office has been changed to the SGS International Coordination Office (formerly the SGS National Coordination Office).

D) Other major steps are being considered.

SOME RELATED SGS INFORMATION:
SGS specializes in providing high-quality Professional Troubled-Company Specialist services to troubled companies. In doing so, the Firm works very closely with other professional entities that provide complementary services or help, such as angel investors, investment banking firms, banks, other financing entities, law firms, business brokers, CPA firms, collection agencies, and many others.

SageGroup is the largest Professional Troubled-Company Specialist firm in the USA and the world, with over sixty offices in the USA, Canada, Asia, and Europe, and with several more pending offices. The Firm specializes in helping troubled companies and other complex situations. Its main objectives include to: a) resolve their serious problems; b) reorganize and restructure them in an optimal manner; c) obtain sufficient financing; and/or d) grow and develop the ongoing companies in a positive appropriate manner.

SageGroup offers a powerful large group of professionals who are experts at helping companies get out of trouble and move forward. The Firm's staff includes over 600 highly-qualified specialists, including: financing and financial experts; turnaround experts; troubled-company specialists; marketing specialists; international business experts; attorneys; strategists; CPAs; corporate development specialists; acquisition and strategic alliance experts; corporate executives; operations experts; global sourcing specialists; industry specialists; technologists; and many others.

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; and transitions into being larger, stronger, well-financed, and stronger-management-team-run ongoing companies.

Besides it being very knowledgeable, capable, credible, and experienced in troubled-company situations, SageGroup emphasizes being very discreet, working with absolute confidentiality and behind the scenes whenever necessary. As part of its strict confidentiality policies, the Firm has never disclosed or publicized the names of its clients. (For maximum confidentiality, initial inquiries from troubled companies and others can be directed to Larry Lindsey, a SGS Managing Director at SGS's International Coordination Office, phone number (510) 865-2480.)