SOURCE: RG America, Inc.

March 06, 2006 08:00 ET

RG America Announces the Signing of an Additional $6.5 Million Contract

Company Continues Hurricane Restoration Work on the Atlantic Coast

DALLAS, TX -- (MARKET WIRE) -- March 6, 2006 -- RG America, Inc. ("RGA") (OTC BB: RGMI), a Dallas-based Insurance Restoration Company specializing in recovery, remediation, roofing and re-construction of insurance losses, announces the signing of another restoration contract by its subsidiary, RG Restoration, Inc. d/b/a The Restoration Group ("RG"). The contract is valued at over $6.5 million and involves the reconstruction and restoration of commercial properties located on the Atlantic Coast damaged by last season's Hurricane Wilma. This latest project increases the total amount of contracts currently being serviced to more than $37 million. This project will be monitored and supervised by the Company's new "RG Operations Center," which tracks and integrates each of its projects from inception to completion nationwide. The center includes 5 major reporting divisions: Recovery, Remediation, Reconstruction, Roofing and Resources.

"While this past Hurricane Season created destruction of historic proportions along the Gulf Coast, the Atlantic Coast also sustained heavy damages from Hurricane Wilma. This contract represents the continuation of our commercial property restoration efforts in that region," said Hailey Tullos, National Large Loss Account Manager. "The new $6.5 million contract is for the reconstruction of a project where we just completed a $3.8 million contract for remediation services. This is representative of the faith our customers have in us to deliver excellent service in the various stages of the restoration process."

The results of the 2005 Hurricane Season (from hurricanes Katrina, Rita and Wilma) will continue to require repair, restoration and other insurance related services well into 2007. Due to the scope of these ongoing needs and in preparation for the upcoming hurricane season, the Company has initiated greater efficiency strategies in Hurricane Restoration Procedures. In addition, the Company continues to focus on its clients' ongoing needs, including the upcoming launch of its patent-pending casualty insurance product, "PropertySMART(SM)," through its insurance division, RG Insurance Services, Inc. This innovative and industry-leading program delivers improved service, rapid emergency response and real cost savings to the multi-family and commercial property industries.

About RG America:

RG America is a family of companies delivering both insurance restoration services and targeted insurance services/products. Its restoration subsidiaries specialize in remediation, insurance recovery, roofing, re-construction and project management for insurance losses. The Company focuses primarily on multi-family, retail and commercial real estate properties that have experienced catastrophic losses caused by hurricane, flood, fire, wind or hail. RG Insurance Services, Inc. ("RGIS") is a full lines insurance agency. It will be the general agency for RGA's proprietary, patent pending, property and casualty insurance product called PropertySMART(SM), which delivers improved service and cost savings to the multi-family housing industry.

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

  • Investor Relations Contact:
    Tim Clemensen
    Rubenstein Investor Relations
    212-843-9337