Alameda, CA -- December 4, 2002. SageGroup Strategies announces that it is now implementing a major managerial reorganization and other major transitional steps. These are now very timely and appropriate because of the major national growth and development of SageGroup and its achieved status as the largest Professional Troubled-Company Specialist firm nationally and internationally. The managerial reorganizational steps and other major transitional steps are expected to be completed this month.

All SGS Associates are invited and encouraged to participate in this process proactively in their best interests. The process is being coordinated by the SGS Marketing Council (eight senior-level SGS Associates nationally) and the SGS National Coordination Office in Alameda, CA.

The process is expected to include:

A) Promotions, including of several SGS Associates to Managing Director, the highest of SGS's five levels of Associates.

B) SGS's de facto CEO will continue to be the SGS Senior Council, which consists of all 120+ SGS Senior and Managing Directors.

C) Reporting to the SGS Senior Council will be the SGS Managing Council, which consists of all SGS Managing Directors.

D) Also reporting to the SGS Senior Council will be the SGS National Coordination Office, which coordinates most SGS activities nationally. The NCO also maintains all strictly-confidential SGS files and records, including those relating to clients, SGS financial records, and SGS Associates personnel files. (For SGS strategic and other reasons, these files and records are strictly confidential and are kept by the SGS Coordinator.)

E) Reporting to the SGS Managing Council will be several proactive team-managed SGS entities, including the Marketing Council, the International Council, the Strategic Council, the various Industry and other Divisions, the various geographical Coordination Councils (e.g., San Francisco Bay Area CC, New England CC, the various State Coordination Councils, et.al.), and any appropriate other entities.

F) The SGS website is being heavily upgraded. The Press Releases section is already upgraded, and the rest of the website is scheduled for upgrading this month.

G) Much planning and some decisions are planned regarding the multinational growth of SGS. SGS has been and is purposefully focused mainly on the USA for now, growing and developing within the enormous "American" troubled-company market. For several years SGS has been considering the multinational area but delaying most implementation thereof. Various basic models have been considered closely, including: 1) the classic Western model of a USA headquarters with foreign operations; 2) the classic Big-4 CPA firm model of partnerships and other entities in various parts of the world; and 3) a specially-created model that uniquely fits SGS and its Associates, strategic relationships, clients, affiliates, Representatives, etc. While this is expected to be an issue to be discussed and perhaps debated by various strong-willed SGS Associates with various experience bases and opinions, it is tentatively expected that the weaknesses of "1" and "2" will result in SGS going with "3".

H) Other appropriate areas.

For additional information, please contact: Larry Lindsey, Managing Director, SGS National Coordination Office, by email at SGS@SageGroupStrategies.com or by phone at (510) 865-2480.