07/01/02 25 warning signs of companies in trouble: SageGroup offers list to media, lenders, investors, and others

Alameda CA-July 1, 2002-SageGroup Strategies (SGS), the nation's largest Professional Troubled-Company Specialist firm, announces that it has defined 25 key warning signs that investors, banks, and other commercial lenders should be very wary of when deciding whether to get involved or stay involved with micro cap, small cap, and other companies. SGS is now making this list available to media, investors, commercial lenders, and appropriate others.

One version of the list is contained in a recent article entitled "Twenty-Five Red Flags of Troubled Companies", which appeared in the May 2002 issue of the respected Commercial Lending Review. The article was written by Roger Farber, a SGS Senior Director and Co-Manager of SGS's Boca Raton, FL Office. This article is now available for distribution upon request.

According to Chuck White, a SGS Senior Director and Co-Manager of SGS's San Diego, CA Office, "One of the most perplexing warning signs we have noted is the too common announcement of some micro caps and small caps that there will be a delay in the filing of their quarterly financials. The problems some companies face are often legally glossed over with various deadline extensions. These extensions have become rather commonplace and many times go unnoticed by unsuspecting new and old investors, lenders, and others. Even shareholders have come to expect it. If I were deciding to invest or stay with a company, I would certainly want to know exactly why the filings were not done in a timely manner. Many times these companies never even offer an excuse or a reason for the delay."

Roger Farber, author of the available article, was recently interviewed on the Windows To Wall Street radio show. Windows To Wall Street interviews CEO's of micro cap and small cap companies and is popular with micro cap and small cap investors. He was asked to comment on some of these warning signs for the investors who listen to the show. Mr. Farber made note of some of these warning signs above. He commented after the show, "Some management teams have a way of hiding the company's problems. They may be even genuinely concerned about the situation that is going on but have no knowledge of how to solve their problems or where to get help. I am part of SageGroup Strategies, which has helped hundreds of companies that were in trouble. The warning list we have compiled and are offering to the media and others comes from our experience in the field, not from a textbook".

25 WARNING SIGNS OF COMPANIES IN TROUBLE:

To obtain a copy of the list/article, please e-mail a request and a fax number and/or mailing address to: SGS@SageGroupStrategies.com

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:

Mr. David Lawrence
National Coordination Office
SageGroup Strategies, Inc.
1370 Third Street, Suite 110
Alameda, CA. 94501
510-865-2480 phone
510-865-6654 fax
SGS@SageGroupStrategies.com