SOURCE: RG America Inc

September 28, 2005 08:38 ET

RG America Completes Additional Financing to Meet Demand Resulting From Katrina & Rita

DALLAS, TX -- (MARKET WIRE) -- September 28, 2005 -- The unprecedented demand for RG America's (RG) (OTC BB: RGMI) Disaster Restoration Services resulting from hurricanes Katrina and Rita, added to the continuing significant opportunities in Florida due to last year's storms, is causing the company to examine several options for new financing. "Even though we've had another profitable quarter we are expanding our financial resources to meet the demand for the work our clients are requesting," noted J..E. (Ted) Rea, CEO. "There is more restoration work than has ever existed at any time before, and both the level of damage and challenges we face restoring everything from Casinos to apartments to commercial buildings are extraordinary. Through our New York investment banker, Spencer Clarke, we have added significant amounts of capital through a PPM offering for additional equipment as well as be able to cover short-term operational needs," he added. RG's subsidiary RG Restoration D/B/A The Restoration Group specializes in multi-family housing and commercial remediation, recovery and re-construction work throughout the US.

Reid Drescher, Chairman and CEO of Spencer Clarke commented, "We are pleased that the company continues to make operational and financial progress. However, in order to finance the massive demand currently in their pipeline we are structuring substantial financing, both debt and equity, to allow the company to capitalize on all this work."

RG America is a family of companies offering construction/restoration and financial services and products primarily to the multi-family housing industry. RG Restoration, Inc. ("The Restoration Group") specializes in reconstructing multi-family and commercial properties damaged by hurricane, fire, flood, wind or hail. RG Insurance Services, Inc. ("RGIS") is a full lines insurance agency. It will be the general agency for RGA's proprietary property and casualty insurance product called PropertySMART(SM) that delivers improved service and true cost savings to the multi-family housing industry.

Founded in 1997 in New York City, Spencer Clarke LLC is a research-based full-service brokerage and investment banking firm. The strength of our investment banking department is its ability to assist both public and private companies with a wide range of corporate finance related activities. As part of the process, we analyze all aspects of our client's operations and develop solutions that are specifically tailored to each client's needs. Spencer Clarke LLC provides comprehensive corporate finance options, which distinguishes us from other middle-market investment banking firms, whose solutions are often biased by their focus on a single corporate finance product. With our diverse expertise, we take a broad perspective in developing corporate finance solutions. We analyze all aspects of our client companies and then assess the feasibility of all corporate finance options. We then discuss and recommend a solution tailored specifically for our clients. Our relationships with major institutional, strategic and corporate investors are powerful resources we utilize to implement our corporate finance plan. Among our many activities, we assist privately held companies in raising $5-$50 million of equity and debt from the private and institutional market.

This release shall not constitute an offer to sell or the solicitation of an offer to buy securities to/from any person, nor shall there be any sale of these securities in any jurisdiction in which it is unlawful to make such an offer or solicitation.

A number of statements in this press release are forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of products and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors described in the Company's filings with the SEC. The actual results that the Company may achieve may differ materially from any forward-looking statements due to such risks and uncertainties.

Contact Information

    RG America, Inc.
    Kevin L. Dahlberg
    (972) 919-4774 ext. 224