RS GROUP COMPANIES INC (fka RSGC)

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Industry News Article


RS Group of Companies, Inc. and Invvision Capital, Inc. Announce Strategic Alliance; Invvision to Market RSGC`s Rent Shield Product to Its Existing Clientele of Several Hundred Thousand Residential Apartment Unit
Business Wire
April 25 2007
RS GROUP OF COMPANIES, INC. (formally RENT SHIELD CORP.) (OTCBB:RSGC), a provider of pass-through risk specialty insurance and reinsurance products, and INVVISION CAPITAL, INC. d/b/a RG America (RGA), (OTCBB:INVA), announced today the execution of strategic alliance.

Under the terms of the 20-year agreement, Invvision Capital will market RS Group of Companies` Rent Shield residential rental guarantee program on a non-exclusive basis in the United States and Canada to RGA`s existing clientele of property managers and apartment owners who collectively own in excess of 450,000 residential apartment units. As part of the agreement, RGA is committing that it will enroll no less than 100,000 residential units in the Rent Shield program by no later than August 6, 2005. During the term of the agreement, RGA has agreed not to market any similar or competing product for residential rental guarantee.

Additionally, RS Group of Companies has appointed RG Restoration, Inc., a wholly-owned subsidiary of RGA, as the exclusive contractor to perform on behalf of RSGC property damage claims adjustments in the United States and Canada. RS Group of Companies will issue to RGA warrants to purchase 2,000,000 shares of RSGC`s common stock at an exercise price of $3.25 per share.

Commenting on the announcement, John Hamilton, CEO of RS Group of Companies, Inc., stated, "This alliance with RGA is an excellent mutual fit for both companies. RGA will be taking our innovative residential rental guarantee program to its existing clientele of owners and operators of several hundred thousand apartment units across the U.S., and we have a capable partner to contract out all future claims adjustment. We anticipate significant traction and uptake of our Rent Shield product over the next 3 months."

"The Rent Shield program is a perfect addition to our group of risk management offerings. It fits well with our commitment to provide value and saving to the multi-family housing market as well as additional income for owners and property managers. We are very optimistic about our expanding relationship with the RSGC organization", said J. E. (Ted) Rea, CEO of RG America.

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.rentshieldcorp.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.

About RG America

RG America is a publicly traded company that provides a broad array of fee-based products and services addressing clients` need to control the costs of risk management for their multi-family housing real estate assets. These services include traditional insurance products, loss control and engineering consulting, administration of claims, restoration construction and innovative financial products including those that minimizing business interruption costs. RG America has just introduced our new PropertySMART(SM) program. This is an exciting new product aimed at reducing the costs of property insurance for the multi-family housing industry. The company is based in Dallas, Texas. More information is available at www.rgamerica.com.

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.