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TORONTO -- RS GROUP OF COMPANIES, INC. (formerly RENT SHIELD CORP.) (OTCBB: RSGC), a provider of pass-through risk specialty insurance and reinsurance products, announced today it has a signed letter of intent to acquire Value Guaranteed Vacations Inc. ("VGV"), a privately held provider of an innovative timeshare value protection program and a related person of RS Group of Companies, Inc. RS Group of Companies will acquire VGV for a total of $36 million in a combination of cash and stock.
VGV is expected to generate no less than $3 million of fee income in the first 12 months subsequent to RSGC`s intended acquisition of the company, and exceeding $8 million annually thereafter. The deal is expected to be completed by September 2004.
VGV (http://www.vgvinc.com) has launched the first-of-its-kind value guaranteed product through its VGV Club membership program, which offers protection against the depreciation of timeshare ownership interests. The VGV Club benefits include a buy-back guarantee, an affinity credit card program and related travel insurance products. The buy-back guarantee provides that 10 years after the date of purchasing a timeshare, the owner can elect to receive a full return of the acquisition cost of the timeshare including a return of the cost of the VGV guarantee in exchange for the owner`s timeshare interest.
Commenting on the announcement, John Hamilton, CEO of RS Group of Companies, stated, "We believe VGV`s timeshare value protection program will revolutionize the sale and resale of timeshare interests worldwide. Upon closing, this acquisition will provide RS Group of Companies another opportunity to expand its global presence within the insurance and reinsurance industry."
RS Group of Companies` core product, the RentShield(TM) Residential Rental Guarantee Program, (http://www.rentshieldexpress.com):
- Guarantees, without question, to automatically pay the landlord up to six months of rental income in the event of tenant default within 30 days of the due date.
- Pays the landlord up to $10,000 for willful damage by a tenant.
- Eliminates the landlord`s legal, eviction, and administrative collection expenses.
- Pre-qualifies a prospective tenant through background and credit verification within 48 hours of their application.
- Eliminates the need for landlords requiring up-front payment of a security deposit and last month`s rent.
- Provides property owners the online tools that help administer residential rental properties and access other RSGC products and services.
- Provides landlords and tenants online access to listings of vacant properties.
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. In November 2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution, RentShield(TM) (http://www.rentshieldexpress.com), a Residential Rental Guarantee Program being offered to North America`s $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential property developers and is being used as an extremely effective marketing tool in the United Kingdom for the buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline.
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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