SOURCE: St James Capital Holdings, Inc.

May 17, 2005 07:03 ET

St James Capital Holdings, Inc. Acquires Financial Services Group

Company Acquires UK-Based Financial Services Group

New York, NY -- (MARKET WIRE) -- May 17, 2005 -- St James Capital Holdings, Inc. (OTC: SJCH) announced today that it has completed its acquisition of the St James Resource Management Limited Group ("Resource Group") of Companies in the United Kingdom.

Resource Group is a group of 34 companies primarily incorporated in the United Kingdom and with certain subsidiary companies in the United States. Resource Group is primarily in the Structured and Corporate Finance arenas advising clients on capital raising, restructuring and admission to equity markets in the United States. Resource Group invests on a short-term basis in these companies as well as providing short-term capital prior to their flotation on USA equity markets. Resource Group places lines of stock in these client companies for cash, post their admission to USA equity markets. Resource Group also holds a portfolio of development Real Estate in the United States.

Resource Group has a net asset value of US$89 million and posted earnings in excess of US$4 million in the last financial year.

The acquisition of Resource Group will enable to Company to aggressively grow its client base and pursue its very ambitious growth targets for this year. Resource Group has in excess of twenty new clients which are in the process of seeking admission to the USA equity markets at this time.

Mr. Stephen C. Lumb, the President of St James Capital Holdings, Inc., said today that he was delighted that the company had now completed its first acquisition in the financial services sector. The value of this first acquisition by the company is circa US$100 million and was settled through the issue of restricted shares of the company's Common Stock.

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the Company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.

Contact Information