Werba Reinhard, Inc.

June 17, 2008 17:17 ET

Werba Reinhard Responds to Proposed Offer by FFL to Acquire all Loring Ward Shares by Increasing Minimum Price to US$16.75

SAN JOSE, CALIFORNIA and TORONTO, ONTARIO--(Marketwire - June 17, 2008) - Werba Reinhard Holdings Ltd. ("WRH"), a wholly-owned subsidiary of Werba Reinhard, Inc. ("WRI"), wishes to respond to the press release issued by Loring Ward International Ltd. ("Loring Ward") on June 13, 2008 announcing that it had entered into a definitive agreement with affiliates of Friedman Fleischer & Lowe, LLC ("FFL"), a U.S. private equity firm, under which a company owned by FFL will acquire all of Loring Ward's outstanding shares pursuant to a plan of arrangement at a price of US$16.50 per share in cash payable in U.S. dollars (the "Plan of Arrangement").

WRH reiterates its continued intention to acquire all of Loring Ward's outstanding shares at a fair valuation as described in its dissident circular dated June 6, 2008, and WRH is pleased to announce that if the incumbent board of directors of Loring Ward is replaced at the upcoming shareholders' meeting so that WRH can conduct due diligence, it will then proceed to make an offer to shareholders at a MINIMUM PRICE of US$16.75 per share, subject only to conditions which are customary for transactions of this nature and that WRH would do so within 90 days of its nominees for the board being elected.

In its June 13, 2008 press release, Loring Ward also announced that it had postponed to August 29, 2008 its Annual and Special Meeting of shareholders previously scheduled for June 27, 2008. WRH is not aware of Loring Ward having received court approval for this action, and WRH does not believe that such action should be permitted without Loring Ward first having received the approval of WRH given that WRH has sent to shareholders a dissident circular in connection with the meeting. WRH intends to bring the necessary court actions as early as possible in order to have the June 27 shareholders' meeting reconstituted at the earliest feasible date.

Based upon the description of the agreement between Loring Ward and FFL contained in the June 13, 2008 press release, WRH believes that such agreement is once again illustrative of Loring Ward's intent to keep WRH out of the auction process even though WRH has shown more interest in acquiring Loring Ward than any other potential acquirer. WRH believes that the interests of Loring Ward's existing senior management, rather than the interests of Loring Ward's shareholders, are served by the proposed arrangement with FFL because certain senior officer(s) will be retained by FFL if the proposed transaction is completed.

At the upcoming Annual and Special Meeting of Loring Ward's shareholders, WRH also intends to challenge the grant of restricted share rights proposed for certain members of Loring Ward management and the grant of certain long-term incentive plans in March 2008. WRH estimates that the granting of such compensation to management has put no less than $0.70 per share in the hands of management and has taken away that potential economic benefit from shareholders. These grants are in addition to the millions of dollars in bonus payments to insiders.


About Werba Reinhard Holdings Ltd.:

WRH, through its shareholders Eli Reinhard and Alan Werba, is believed to be the largest beneficial shareholder of LWI. WRH believes in the continued simplification of the Loring Ward business to better optimize the service and solutions to the financial advisors Loring Ward serves throughout the U.S.

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