E-Rex Mutual Group Press Release

E-REX MUTUAL GROUP ANNOUNCES ACCELERATED CONTINUED PROGRESS OF ITS OVERALL “COORDINATED ARMIES STRATEGIC PROGRAM”

Miami, FL; Los Angeles, CA; and New York City, NY -- October 24, 2005. E-Rex Mutual Group announces that there has been accelerated continued progress during the past four weeks of its overall "Coordinated Armies Strategic Program". This is the Program under which this E-Rex shareholder group is moving forward to remedy the very bad wronging of the E-Rex public company and its shareholders by some very bad persons and firms who have used very bad and allegedly illegal tactics, misrepresentations, mismanagement, and other actions.

Much of this progress is mentioned in this press release. Other major progress is purposefully excluded from this release because the information is very confidential and sensitive, especially that related to government agencies and the legal area.

The Coordinated Armies Strategic Program continues to work very well, including as to the four Armies and the overall coordination. Each of the main four Armies has been moving forward well, both independently and through various coordinated actions. The four main Armies currently making much progress are: 1) the attorneys focusing on lawsuits and other legal aspects; 2) the government agencies focusing on securities regulation, corporate fraud, money laundering, tax evasion, and other related areas; 3) the media focusing on informing the public, especially on corporate wrongdoing; and 4) SageGroup Strategies, Inc., focusing mainly on the financial and business aspects in the best interests of E-Rex, its shareholders, and related entities. Overall coordination is being handled jointly by E-Rex Mutual Group and SageGroup Strategies.

In addition, there has been excellent additional progress during the past two weeks because of the important alliance of the E-Rex Mutual Group with Joe Pacheco and his associates. Joe is a former Chief Operating Officer and Director of E-Rex and is a large E-Rex shareholder.

On October 18 there was a major two-hour strategic discussion of: a) Joe Pacheco; b) Chris Ford, a leader of the E-Rex Mutual Group; and c) Larry Lindsey, Managing Director of SageGroup Strategies, Inc., the major business turnaround firm (of which E-Rex Mutual Group is a client). Major joint conclusions of that discussion included:

  1. In addition to the progress being made with the government agencies, attorneys, and the media, a very important priority is much progress in the financial and other business areas, areas in which Joe, Chris, and Larry are jointly working.
  2. E-Rex still seems to have several important assets potentially, including:
    1. large Net Operating Losses to offset future earnings for tax purposes;
    2. the corporate shell itself;
    3. the Dragonfly or potential related products thereof;
    4. potential vehicle in which to place an outside business;
    5. potential claims.
  3. For several reasons E-Rex needs a Board of Directors to make various decisions, appoint the officers, represent the shareholders, etc. E-Rex has usually had three Directors at a time. Since Carl Dilley and Joe both resigned last spring, only Don Mitchell is still evidently a Director. Don, Carl, and Joe are all busy with other activities, hence not being able to also be proactive E-Rex Directors. All three have major incentives to help E-Rex go forward, including with a proactive Board of Directors. Accordingly, Joe plans to talk first with Carl about this, with Carl then to discuss this with Don. Both Joe and Chris are talking with potential new proactive E-Rex Directors. Hence, the most logical and simple approach is for Don either to approve the new candidates as Directors and/or for Don to resign as a Director. Don probably realizes that he has a major legal fiduciary risk and responsibility to E-Rex and its shareholders for as long as he remains as a Director.
  4. For several reasons E-Rex needs current and historical financial statements and accounting records. The records are currently in storage. Joe is to talk with Carl about this, including to have the records be transferred to the E-Rex Mutual Group for accounting, financial, and financing purposes.
  5. The legal, government agency, and media Armies were not jointly discussed, a reason being that so much of this is currently confidential, being mainly handled by Chris.
  6. Joe was recognized for all of his current efforts, including as to his time, information, opinions, financial participation, materials, etc.
Besides the follow-up work by Chris, Joe, and Larry to the October 18 strategic discussion, there have been some other positive developments during the past week. One of these was that two other angry Investors Groups formed formal investors groups (similar to the E-Rex Mutual Group), then launched Coordinated Armies Strategic Programs, plus became clients of SageGroup Strategies. These two other Investors Groups plan to work very closely with the E-Rex Mutual Group. One Investors Group relates to LifePoint, Inc., and one relates to DiveDepot.com, Inc. (another company in which Don Mitchell and Carl Dilley have been Directors and senior executives).

The E-Rex Mutual Group plans to periodically issue new press releases with additional updates, etc.

ADDITIONAL INFORMATION:
E-Rex Mutual Group is an organized group of angry outside shareholders of E-Rex, Inc., a publicly-held Miami-headquartered technology company. Founded in 2001, the Group has been very proactively working since then to save the Company from an entrenched group of apparent corporate swindlers and other wrongdoers.

SageGroup Strategies, Inc. is the USA's and world's largest Professional Troubled-Company Specialist firm, with over 600 professionals based in many offices located in the USA, Canada, Europe, and Asia. Its Small Public Companies Division and International Investors Division are especially knowledgeable and focused on helping small public companies get out of financial, governmental, managerial, fraud-related, and other serious trouble and moving forward well, all in the best interests of these companies and their American and foreign shareholders.

For additional information, please contact Chris Ford of the E-Rex Mutual Group. (Because he is currently traveling much, he will return phone messages left for him with Larry Lindsey at 510-8652480.) This and certain earlier E-Rex Mutual Group press releases are posted in the Articles section of the SGS website www.SageGroupStrategies.com, and some related SGS press releases are posted in the SGS General Press Releases section of that website.