SOURCE: Chelsea Management Group Inc.

January 18, 2008 14:03 ET

Chelsea Management Group Inc. Implements New Corporate Economic Restructuring

DENVER, CO--(Marketwire - January 18, 2008) - Chelsea Management Group Inc. (PINKSHEETS: CLMP) (FRANKFURT: CS4) -- in an integral step of restructuring the company's corporate core business model -- is divesting the marketable liquidity of its wholly owned subsidiary Chelsea Financial Services S. DE RL. DE CV of Mexico. The decision was prompted by the continued sub prime collapse and the current credit and housing crisis. The subsidiary that provides a wide range of financial services such as mortgage lending, bridge financing to property buyers has become an economic burden to Chelsea Management Group. Since its inception in early 2007, Chelsea Financial Services S. DE RL. DE CV of Mexico continues to be a negative economic entity. Chelsea Management Group will redirect any remaining profitable assets from the subsidiary into the company's more viably sound operations. "Although company management was ill advised regarding the financial services division, Chelsea minimized the negative economic outcome by entering into the market in the later stages of the lending crisis. I am confident that in the months ahead, Chelsea Management will rebuild its capital base with this new fiscal model in place and should emerge as a well rounded, viable economic entity," stated company president, Gary Kelley.

About Chelsea Management Group Inc.

Chelsea Management Group is a start-up and early-stage venture capital firm focused on the health and life sciences industry. Formed in 2001, Chelsea searches for the winners of tomorrow -- entrepreneurs whose ideas and talents qualify them to pursue large market opportunities successfully. We seek opportunities across a broad spectrum, including biotechnology and pharmaceuticals, medical devices, services and healthcare/life sciences information technology. On a selective basis, we also consider later-stage health and life sciences investments where we can uniquely apply Chelsea's industry and capital markets experience. www.chelseamg.com

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

Contact Information

  • CONTACT:
    Chelsea Management Group Inc.
    Gary Kelley, President
    (303) 657-2764
    www.chelseamg.com