08/12/03 SageGroup Announces a Receivables Financing and Factoring Division To Help Troubled Companies Nationally and Internationally

New York, NY, and Alameda, CA - August 12, 2003 - SageGroup Strategies, Inc., announces that it has formed a major SGS Receivables Financing and Factoring Division to help troubled companies in several ways. SageGroup is the largest Professional Troubled-Company Specialist firm nationally and internationally, with over 50 offices throughout the United States, plus Beijing and Shanghai, China, plus many U.S. and international relationships and pending offices.

This Division has been formed in recognition of the tremendous need of most troubled companies to get additional financing, combined with the fact that most troubled companies have accounts receivables but have much difficulty in using them to obtain more capital quickly. In many cases the companies' receivables are pledged to commercial banks under lines of credit that have been fully drawn down, with the companies' financial status and other problems having made additional commercial bank financing very unlikely. In too many cases the troubled companies are unable to develop quality optimal relationships with the wide variety of accounts receivable financing and factoring firms that are able to quickly help troubled companies. These firms are very large in number, diversified as to their criteria and terms, and very large in financing capabilities, with annual financing and factoring by these firms annually exceeding many billions of dollars within the U.S.A. alone. (This SGS Division specializes in these firms only, not in commercial banks to the extent that banks do such financing.)

The main purposes of the SGS Receivables Financing and Factoring Division include: 1) To provide appropriate financing-related services to SGS clients, both directly and by involving other quality firms; 2) To develop professional mutually-beneficial working relationships with quality accounts receivable financing and factoring firms, including to involve each other to help troubled companies where and as appropriate; 3) To develop professional mutually-beneficial working relationships with corporations' Chief Financial Officers and other executives, including for these corporations to refer bad receivables to SGS in order that SGS might help these troubled companies get out of trouble (and thus be able to pay their debts).

"Very often these accounts receivable financing and factoring firms encounter troubled companies which could be greatly helped by SageGroup Strategies", stated Manny Kyriannis, one of the three SGS Receivables Financing and Factoring Division Co-Managers and a former president and founder of a Manhattan-based factoring firm for ten years. "When companies can no longer get commercial bank financing of their receivables, it is often because the companies are in some form of very serious trouble that has resulted in cash shortages, financing difficulties, and other severe problems. SageGroup can help these companies get into better financial situations, including that they can stay in business and pay their debts. This, of course, is far better for the accounts receivable financing and factoring firms, especially since most of these troubled companies could otherwise remain in financing and cash crunches, often leading to bankruptcy filings, collapse, and/or discounted debt." (Mr. Kyriannis can be reached directly in the SGS New York City Office in Manhattan at 419 Park Avenue South, Suite 509, NY, NY 10016, phone number (212) 251-0082.)

"Corporations could also be helped much if they would watch their accounts receivable closely, then involve SageGroup when appropriate," added Roger Farber, one of the several SGS Receivables Financing and Factoring Division Senior Directors. "Especially in a difficult business climate like now, most corporations have certain accounts receivable that have become slow-pay and are in much danger of becoming uncollectible and written off, usually because the accounts are troubled companies. Such write-offs hurt not only the corporations themselves and their financial positions, financial statements, etc., but also can create serious problems for the corporations' financial and other executives. It is far better in most situations for the corporations to refer these troubled companies to SageGroup so that SageGroup can try to save these troubled companies and help them to have stronger cash positions, including more ability to pay their debts."

The SGS Receivables Financing and Factoring Division is represented in every SGS Office nationally. On one hand, it is available to assist all SGS clients with specialized professional help. Concurrently, the Division will proactively increase and deepen SageGroup's working relationships with many accounts receivable financing and factoring firms, persons, and other entities.

SageGroup provides troubled 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: receivables financing and factoring experts; other financing and financial experts; troubled-company experts; turnaround experts; credit and collections specialists, trade/barter experts; marketing specialists; CPAs; international business experts; attorneys; strategists; joint ventures, mergers, and acquisitions experts; technologists; corporate executives; industry specialists; and others.

SageGroup's staff has been involved in hundreds of difficult company situations, including: credit and collections matters; financings and refinancings; turnarounds; crisis management; debtor programs; spin-outs; restructurings and reorganizations; managed wind-downs and shut-downs; and others.

Most troubled companies are in very sensitive, complex, and confidential situations. Accordingly, for maximum confidentiality and effectiveness, all initial inquiries from troubled companies and their advisors are directed to Larry Lindsey, a Managing Director in SGS's National Coordination Office, phone number (510) 865-2480.

ABOUT SAGEGROUP STRATEGIES
SageGroup Strategies is the largest Professional Troubled-Company Specialist firm in the United States and the world. Besides being very experienced and knowledgeable, SageGroup emphasizes being very discreet, working with absolute confidentiality and behind the scenes whenever necessary. 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: http://www.SageGroupStrategies.com.

MEDIA CONTACT:
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