Message #9 From:
Stock News Bot Date: December 15, 2005 03:30:00 AM
RSGC News RS Group of Companies Brokers $700 Million Investment
TORONTO--(BUSINESS WIRE)--Dec. 15, 2005--RS GROUP OF COMPANIES, INC. (OTCBB:RSGC), a provider of pass-through risk specialty insurance and reinsurance products, announced today that the company has brokered the sale of $700 million of Class D Preferred Stock of Strategy Holding Company Limited, a subsidiary of Strategy International Insurance Group, Inc. (OTCBB:SGYI), to Grupo Lakas S.A., a Panamanian corporation, in exchange for a $700 million note collateralized by assets having an initial value of $900 million. The Company and Strategy International Insurance Group, Inc. have previously announced that they have signed a letter of intent to merge the companies.
Commenting on this announcement, John Hamilton, Chairman and CEO of RS Group of Companies, Inc. stated "We have been diligently working with Strategy and Grupo Lakas to finalize the sale for the past several months. We are pleased to have assisted in this important transaction."
Due to the critical importance of this deal, RS Group's senior management is entirely focused toward completing this transaction and, as such, will be rescheduling its conference call scheduled for today to Monday, January 16, 2006 at 4:00 p.m.
About Grupo Lakas
Grupo Lakas is a Panamanian holding company with investments in mineral mining, portuary activities, fuels and power generation.
About Strategy International Insurance Group, Inc.
Strategy International Insurance Group, Inc., (http://www.sgyi.com) a Texas corporation is a publicly traded holding company for a group of financial service companies that are located throughout the world. Strategy Holding Company Limited, a wholly-owned subsidiary is the parent company for a group of insurance related organizations whose operating subsidiaries include Strategy Insurance Limited of Barbados, Strategy Insurance (Canada) Limited and Strategy Underwriting Agency Limited. Strategy Holding Company Limited owns all of the insurance operations of which the key operating insurance company is Strategy Insurance Limited. Strategy Insurance Limited was incorporated in Barbados on December 23, 2003 and was granted a license under the Barbados Exempt Insurance Act on March 25, 2004. Strategy Insurance Limited is Strategy International Insurance Group, Inc.'s key operating insurance company.
About RS Group of Companies, Inc.
RS Group of Companies, Inc. (http://www.rsgc.com) has developed and is implementing a strategy to design, structure and sell a broad series of pass-through risk specialty insurance and reinsurance platforms throughout North America. The company is structured as a holding company for an integrated group of businesses that operates in four distinct operating segments: residential rental services, timeshare affinity program, financial guarantee, and specialty insurance brokerage. Current offerings include RentShield(R) (http://www.rentshield.com), a Residential Rental Services Program being offered to North America's $300 billion residential real estate rental market, and Value Guaranteed Vacations, Inc.'s timeshare affinity program, VGV(TM) Program (http://www.vgvinc.com).
Forward-Looking Statement
Statements in this press release which are not historical in nature are intended to be forward-looking statements made in reliance on the "safe harbor" of the Securities Exchange Act of 1934. The Company cautions that forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those expressed or implied in such statements. When used in this press release, words including "anticipate", "believe", "estimate", "expect", "intend", "will", "could", "may" and similar expressions, as they relate to the Company or the Company's management identify forward- looking statements. Such forward-looking statements are based on the beliefs of, as well as assumptions made by and information currently available to, the Company. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, domestic and international business, economic and political conditions and developments, competitive factors, pricing pressures, capacity and factors affecting the insurance industry. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake any obligation to update or revise any forward-looking statement.
RS Group of Companies, Inc. (OTC Bulletin Board:RSGC)
