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Project Group Announces Plans to Spin Off RFID Subsidiary, Pro-Squared Inc., to Shareholders; PJTG Shareholders to Receive Shares in New Public Company
2/22/05

HOUSTON, Feb 22, 2005 (BUSINESS WIRE) --
The Project Group Inc. (OTCBB:PJTG) announced today that on Feb. 17, 2005, The Project Group Inc.'s board of directors adopted a resolution authorizing the distribution to the company's shareholders of approximately 69% of the outstanding shares of the company's 99.5% owned subsidiary, Pro Squared Inc. Subject to the advice of counsel and compliance with applicable law, the board has directed that the record date of the distribution be fixed on or before March 31, 2005 or as soon thereafter as practical.

Craig Crawford, CEO of the Project Group, commented, "this action of the board will allow Pro-Squared to focus its operational and capital efforts on 'closed loop' RFID implementations as well as maximize shareholder value for current Project Group shareholders. We are currently evaluating the timing of the spin-off, and expect to announce a record date to shareholders before the end of this quarter. Project Group will remain a significant shareholder in Pro Squared and will continue our strategic partnership with Pro Squared in developing the RFID marketplace."

About The Project Group Inc.

The Project Group Inc. is a Microsoft Gold Certified Partner and Premier provider of Enterprise Project Intelligence (EPI) and Collaboration Solutions, which maximize clients' value from their portfolio of resources and projects. The Company is headquartered in Houston, Texas, was founded in 2001 and has provided its expertise to companies nationally and around the world. Recent clients include Southwest Airlines (NYSE:LUV), Microsoft (NasdaqNM:MSFT) and Tyson Foods Inc. (NYSE:TSN).

About Pro Squared Inc.

Pro Squared Inc is a subsidiary of The Project Group focused on closed loop RFID solutions. RFID technology replaces traditional, unreliable bar codes and is rapidly becoming the state-of-the-art in supply chain management. RFID tags consist of silicon chips and antennae that can transmit data to a wireless receiver. Recently, Wal-Mart has mandated that all major vendors utilize RFID and recently Pfizer, Smith Kline, Purdue Pharma and the FDA have all announced new RFID programs.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that these forward-looking statements involve uncertainties and risks that could cause actual performance and results of operations to differ materially from those anticipated by these statements. These risks and uncertainties include issues related to the ability to: obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new opportunities, and the unpredictable nature of business risks; as well as the timing and ultimate consummation of the proposed spin-off of Pro Squared and the ability of Pro Squared to secure capital and operate profitably as a separate company, and other factors set forth in the Company's most recently filed SEC reports. The forward-looking statements contained herein represent the Company's judgment as of the date of this release and it cautions readers not to place undue reliance on such statements. The Company assumes no obligation to update the statements contained in this release.

SOURCE: The Project Group Inc.

The Project Group Inc., Houston Craig Crawford, 713-622-1100 [e-mail] or Pro Squared Inc. Raphael Feldman, 631-491-1100

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