RS Group of Companies, Inc.
OTC Bulletin Board : RSGC

RS Group of Companies, Inc.

June 02, 2005 08:00 ET

RS Group of Companies' Increases Focus on Timeshare Affinity Program due to Recent Success

TORONTO, ONTARIO--(CCNMatthews - June 2, 2005) - RS GROUP OF COMPANIES, INC. (OTCBB:RSGC), a provider of pass-through risk specialty insurance, reinsurance products, and affinity programs, announced today that the affinity program offered to timeshare owners by RS Group's subsidiary, Value Guaranteed Vacations Inc. (VGV Inc.) is enjoying stronger than expected growth. The VGV Inc. program is rapidly becoming a significant revenue source for the Company, leading RS Group to place a larger focus on its expansion, striving toward widespread implementation in the timeshare industry.

VGV Inc. is currently in negotiations with respect to, and expects to complete, several additional contracts with major timeshare developers over the next 60 days. These contracts would follow the recent and successful launch of the VGV™ Program with Shell Vacations LLC at Shell Vacation's Carriage Ridge Resort in Barrie, Ontario and Harbor Vacations Club in San Diego, California.

RSGC's recent success in the timeshare industry, through VGV Inc.'s affinity program, should provide additional revenues that are expected to contribute to the RSGC's financial strength. RS Group of Companies anticipates that this timeshare affinity program should generate significant gross revenues for the remaining 2005 fiscal year and for the subsequent 10 years.

John Hamilton, Chairman and CEO of RS Group of Companies, Inc. commented, "The timeshare market remains extremely strong as timeshare sales grew 16% to an estimated $7.5 billion in 2004. VGV Inc.'s recent success in the timeshare industry has motivated us to expand the program further into the vacation market to include fractional ownership and condo hotels. The success of our VGV™ Program and the expansion of our product offerings in the resort sector are creating a strong financial base from which the company can grow. While we intend to further develop our other innovative products including RentShield®, we will remain committed to optimizing the dynamic success of the VGV™ Program."

About RS Group of Companies, Inc.

RS Group of Companies, Inc. (http://www.rsgc.com) has developed and is implementing a strategy to design, structure and sell a broad series of pass-through risk specialty insurance and reinsurance platforms throughout North America. The company is structured as a holding company for an integrated group of businesses that operates in four distinct operating segments: residential rental services, timeshare affinity program, financial guarantee, and specialty insurance brokerage. Current product offerings include RentShield® (http://www.rentshield.com), a Residential Rental Services Program being offered to North America's $300 billion residential real estate rental market, and Value Guaranteed Vacations, Inc.'s timeshare affinity program, VGV™ Program (http://vgvinc.com).

About Value Guaranteed Vacations Inc.

Value Guaranteed Vacations Inc. (VGV Inc.), a wholly-owned subsidiary of RS Group of Companies, Inc. offers an affinity program that provides, as one of its benefits, a put option which gives timeshare owners who become VGV™ Program members the right to sell their timeshare interest, excluding VGV™ Program membership fees and applicable taxes. This non-transferable timeshare interest put option provides a ready-buyer should a timeshare owner wish to sell his or her timeshare interest. VGV Inc.'s purchase obligations are backed by, among other things, insurance, which may be provided by affiliates of VGV Inc. The VGV™ Program also offers timeshare owners who become members other benefits, such as a no-fee credit card and travel related discounts. This membership program is in the process of being marketed to large timeshare developers and promoters who will, in turn, offer the program to existing and prospective timeshare owners.

Forward-Looking Statement

Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as "Forward Looking Statements" for purposes of safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward Looking Statements may be identified by words including "anticipate", "await", "envision", "foresee", "aim at", "believe", "intends", "estimates" including without limitation, those relating to the company's future business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the Forward Looking Statements. Readers are directed to the company's filings with the U.S. Securities and Exchange Commission for additional information and a presentation of the risks and uncertainties that may affect the company's business and results of operations.


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