06/26/02 Venture Capital Firms now involving troubled-company specialists much earlier and more often

Alameda CA -- June 26, 2002. SageGroup Strategies (SGS) reports that its Venture Capital Firm Liaison Group has determined that venture capital firms nationally are now involving professional troubled-company specialists in troubled venture-capital-financed portfolio companies much earlier and more often than has been the general practice in the past.

John Zipp, a SGS Senior Director and Co-Manager of the VCF Liaison Group, stated, "This trend is an excellent example of how venture capital firms are demonstrating increased professionalism and responsibility in focusing closely on all of their portfolio companies during this difficult economy."

He added, "Historically, troubled-company specialists often were not brought in until a troubled company was seriously hemorrhaging and close to collapse. By this time, the probability of a successful turnaround was generally only about 25% or less. Now, with the venture capital firms involving troubled-company specialists much earlier, the probability of a successful turnaround is much higher."

SageGroup has many years of experience and successes with troubled high-tech and other companies. "SGS has been successful with over 90% of the troubled companies they have handled", stated Larry Lindsey, a SGS Managing Director. "Most failures have been because the troubled company's management team and/or main owners did not continue to work with SageGroup and the agreed-upon strategies once the initial crisis was handled and the situation was noticeably improving."

Venture capital firms continue to have many troubled portfolio companies that cannot get financed and are not profitable.. These companies can get into deeper trouble easily. SGS plans to be working closely with many of these firms, Mr. Zipp noted. .

ABOUT SAGEGROUP STRATEGIES

SageGroup Strategies is the largest Professional Troubled-Company Specialist firm in the United States and the world. Notably experienced and knowledgeable, SageGroup prides itself on being very discreet, working with absolute confidentiality and behind the scenes whenever necessary. It has been involved in hundreds of troubled-company situations, including: turnarounds, crisis management, debtor programs, spinouts, restructurings, and reorganizations. As part of its strict confidentiality policies, SageGroup has never disclosed or publicized the names of its clients.

More information about SageGroup Strategies is available at www.SageGroupStrategies.com

CONTACT:
David Lawrence
National Coordination Office
SageGroup Strategies, Inc.
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Alameda, CA 94501
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SGS@SageGroupStrategies.com