Loring Ward International Ltd.

Loring Ward International Ltd.

March 02, 2005 13:23 ET

Loring Ward Divests Itself Of Baseball And Football Practice Of Moorad Sports Management Inc.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: LORING WARD INTERNATIONAL LTD.

MARCH 2, 2005 - 13:23 ET

Loring Ward Divests Itself Of Baseball And Football
Practice Of Moorad Sports Management Inc.

WINNIPEG, MANITOBA--(CCNMatthews - March 2, 2005) - Loring Ward
International Ltd. today announced that it agreed to sell certain assets
of its Moorad Sports Management Inc. business to the senior management
of that firm, who will continue the sports agency practice independent
of Loring Ward. Moorad Sports Management Inc. specializes in the
representation of professional baseball athletes in Major League
Baseball and professional football athletes in the National Football
League.

The transaction will result in the senior management of Moorad Sports
Management Inc.:

- taking over the operations of the existing business and assuming the
operating costs associated with the practice;

- collecting the revenues that the business is currently entitled to
over the remaining life of the existing player contracts; and

- continuing the sports agency practice under the name LS Legacy Sports
Group LLC.

As a result of this transaction the company will earn approximately 70%
of the agent representation fees owing under player representation
agreements currently in effect.

"In light of ongoing developments in the sports representation industry,
this transaction makes sense for all concerned and will allow us to
continue to increase our investment in those businesses that represent
the highest prospect of growth for the company," said Don Herrema,
President and Chief Executive Officer of Loring Ward International Ltd.
"Presently, we believe those to be our core financial services
operations in the United States, namely, our asset management, family
office and advisor services businesses."

"For clients of this sports representation firm, it ensures continuity
of service. For the sports agents themselves, it provides them with an
opportunity to have a more meaningful stake in the future of their
business. This transaction also underscores the willingness of these
agents to invest in their company to insure that their clients will
continue to receive the high standards of service they have become
accustomed to."

"And for Loring Ward, it allows us to realize the value of our sports
representation business for shareholders, while enabling us to dedicate
increasingly more resources and focus towards building and growing our
core financial services operations," he added.

Financial Reporting

For financial reporting purposes, the company announced that the above
noted transaction and the sale of the football practice of Maximum
Sports Management Inc. announced on February 10, 2005 will be accounted
for as outlined below.

In 2005 and subsequent years, the operating income of the Sports
Representation group will include:

- revenues earned in a particular year relating to player representation
agreements in effect as at the beginning of 2005 at both Moorad Sports
Management Inc. and Maximum Sports Management Inc.;

less:

- a 30 per cent fee payable to former management of these firms in
respect of services relating to these player representation agreements.

In addition, the company announced that in the fourth quarter of 2004,
the operating income of the Sports Representation group is expected to
be reduced by certain expenses, write-downs and other adjustments
related to the above noted transactions and the company's overall Sports
Representation business.

Loring Ward International Ltd. provides wealth, career and life
management services to some of America's most enterprising and
successful individuals and families through its Family Office and
network of Independent Financial Advisors. It is an unlisted public
company with principal operating subsidiaries in California and New
York. The Company's corporate offices are located in Los Angeles, San
Jose, New York and Winnipeg.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Loring Ward International Ltd.
    Kishore Kapoor
    EVP, Corporate Development
    (204) 954-5103 or toll-free: 1-866-954-5150
    kkapoor@loringward.com
    or
    Loring Ward International Ltd.
    Denis Taillieu
    Chief Financial Officer
    (204) 954-5154 or toll-free: 1-866-954-5150
    dtaillieu@loringward.com