SOURCE: Rockwood National Corp.

March 31, 2011 08:30 ET

Rockwood Actively Seeking Additional Mortgage Lending, Real Estate Brokerage and Title Service Acquisition Opportunities

BOCA RATON, FL--(Marketwire - March 31, 2011) - Rockwood National Corp. (PINKSHEETS: RNTL) ("Rockwood") announced today that with the full support of its Board of Directors, the Company is aggressively seeking to acquire mortgage lending, real estate brokerage and title service providers across the country, consistent with the objectives of its established growth strategy. The Company plans to continually enhance its organic growth by acquiring recognized sector leaders to further complement and support its full service national real estate distribution network. By combining the synergistic benefits of economies of scale, cross selling and reduced marketing expense, the proprietary business model of the Company provides each subsidiary with enhanced revenue and profit margin opportunities not found on an individualized basis. 

Gary Fioretti, Chairman and Chief Executive Officer of Rockwood, commented, "Due to the continual regulatory changes in the banking industry over the last several years and current distressed housing market, it has become increasingly difficult for small to mid-sized real estate and mortgage lending operations to maintain their competitive edge and profit margins. Market opportunities have compressed, while the cost of originating new client activity has escalated. Under the proprietary Rockwood model, aggregation of these economically challenged enterprises under a unified umbrella provides a unique synergistic benefit to each entity. The ability to cross sell our services allows for reduced cost of mortgage origination, along with enhanced mortgage product capabilities and closing potential for the real estate brokerage. Simply put, having a mortgage origination team located directly the office of the real estate brokerage gives the agent superior service with direct access to a full service lender. The mortgage originator no longer seeks to source business or call on unqualified leads… rather; he or she works directly with a prospective home buyer on providing the appropriate financing to fund their purchase transaction."

Mr. Fioretti further added, "With the industry in a state of compression, opportunities abound for Rockwood to continue with implementation of its aggressive growth strategy. Free of inherent legacy issues that restrict the majority of our competitors, Rockwood is well positioned to attract and acquire additional targets in 2011, furthering the goal of enhancing our national real estate and mortgage distribution network. The Company is currently in active negotiations with several additional targets, and looks to close on these transactions in the 2nd quarter."

This strategy will continue to drive both revenue and earnings for the Company. By integrating the four primary components of real estate services, Rockwood provides enhanced synergistic value to each individual sector, generating additional revenue streams through cross selling of services. Combined, these core divisions provide a dynamic foundation to support our growth objectives as we continue to build name brand recognition coast-to-coast."

About Rockwood National Corp.
Rockwood is a diversified, national real estate services company focused on the primary components in the industry. By pursuing a strategy of providing complete default loss mitigation (REO & Short Sale), real estate brokerage, full mortgage origination and title service capabilities, Rockwood's goal is to quickly capture market share in each sector and become the preferred "one-stop" provider of choice. At the end of the current distressed asset lifecycle, Rockwood anticipates having built an unmatched national real estate and mortgage distribution channel for continued production, and to be in superior position to offer portfolio retention services to financial institutions across the country. By monetizing the activities of its core components through internal operations as well as the referral and revenue sharing with its strategic partners, Rockwood views the development of this professional network as a valuable asset to drive earnings while simultaneously creating continued growth opportunities. It is these same preferred partners that ultimately will become the next acquisition candidates as Rockwood continues to grow its nationwide distribution network.

Forward-Looking Statements
Certain statements in this news release are forward-looking. All statements other than statements of historical facts included in this news release including, without limitation, statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "estimates," "projects," "potential," "target," "goal," "plans," "objective," "should," "may," "would" or similar expressions or variations on such expressions are forward- looking statements. Rockwood can give no assurances that the assumptions upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. There are a number of risks, uncertainties and other important factors that could cause Rockwood's actual results to differ materially from the forward-looking statements including, but not limited to, Rockwood's ability to identify appropriate corporate acquisition and/or joint venture opportunities in the real estate sector, Rockwood's ability to raise the required capital to take advantage of and successfully participate in any such opportunities, and future economic conditions affecting real estate valuations. Rockwood disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this news release to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

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