DENVER, March 2, 2004 (PRIMEZONE) -- Paramco Financial Group, Inc. (OTCBB:PFDE), a financial services firm, announced today that it has initiated the first phase of an affiliation with a company to be used for the purpose of managing and retiring Paramco's existing debt to its Series "A" and Series "B" Note Holders. The affiliate partner, Provident Asset Management, LLC, was registered in the State of Nevada on February 27, 2004. Provident, in its role, anticipates taking over and managing all of the existing debt instruments issued by Paramco (approximately $1.5mm in notes). Paramco in return will provide Provident with an equivalent value of said notes in the form of a preferred convertible issue of Paramco shares, to be held for the benefit of the debt holders. Provident will operate from separate facilities in San Antonio, Texas.
According to Douglas G. Gregg, Chairman and CEO of Paramco Financial Group, "Removing the existing debt from Paramco will allow the Company to continue its efforts to acquire and develop relations with Mortgage Warehouse Lenders, and to acquire existing mortgage origination companies keen on the liquidity and up-side made available by being a part of a public financial services company. We anticipate that by providing mortgage lenders and mortgage originators with an ultimately debt-free public financial services company will give us the accelerated edge we desire to increase our lead base, close more acquisitions, and generate revenues and profits."
About Paramco Financial Group
Paramco Financial Group, founded in 1996, is a financial services holding company that specializes in the development and placement of commercial equipment leasing transactions and in assisting its clients with their capital formation needs. In 2001, Paramco began a major vertical expansion effort to enter into the residential and commercial mortgage industry, the mortgage warehouse lending business and the business of real estate investments through Paramco Mortgage Corporation and Paramco Investments, Inc. Paramco Mortgage Corporation intends to be involved in residential and commercial mortgage financing. It is further intended that Paramco Investments will be structured to meet the statutory requirements for qualification as a REIT and be involved in both the ownership and finance of real estate. The Company is in the process of developing its proprietary "LoanFone VoIP Video Conferencing System" to be deployed to the mortgage industry, allowing mortgage customers, bankers, loan underwriters, and mortgage vendors to communicate "virtually" face-to-face through the loan closing process. For further information about Paramco Financial Group, Inc., please visit http://www.paramco.net.
A number of statements referenced in this Release, and any other interviews that have been made, are forward-looking statements, which are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, and within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumption of future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this actions may be identified through the use of words such as "expects," "will," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or "might," occur. Such statements reflect the current views of the company's management with respect to future events and are subject to certain assumptions, including those described in this release. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products, services, and technologies, competitive market conditions, successful closing of acquisition transactions and their subsequent integration, the ability to secure additional sources of financing, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The Company does not undertake any responsibility to update the "forward-looking" statements contained in this news release.