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DMG Information Acquires RMSI 04.19.2002

April 19, 2002
RMSI announced its acquisition by DMG Information, the business information division of the Daily Mail and General Trust plc, from its portfolio company, Risk Management Solutions, Inc. (RMS), Newark, California, for an undisclosed sum. Effective immediately, RMSI and RMS will operate as separate entities within the overall DMG Information portfolio of holdings.

Commenting on the change of ownership, Ajay Lavakare, Chief Executive of RMSI said, “We have enjoyed a highly constructive relationship with RMS, one that has allowed us to build and nurture our business in its formative years. Today, we are excited about independently pursuing our vision of becoming a global leader of Geo-spatial and software solutions. We will continue to work with our existing partners and global clientele, including Fortune 500 companies and government agencies in several countries. We will also continue to do business with RMS, now our sister company, providing them with a range of software development, GIS, and risk engineering services.” Haresh Shah, Chairman of RMSI, added, “RMSI has come of age, and is poised for significant growth by advancing up the value-chain in an increasingly global market”.

Martin Morgan, Chief Executive of DMG Information, views the sale as a win-win for employees and shareholders of both RMSI and RMS. “By taking a direct stake in RMSI, DMG Information is looking forward to a significant return on its investment through the continued success of RMSI. By aligning ownership, risk, and return more clearly between RMSI, RMS, and their respective business plans, we expect to maximize value for all parties. Moreover, as we do with all of our companies, we intend to encourage RMSI and RMS to continue to work together to meet the needs of existing initiatives and to pursue future opportunities.”

Hemant Shah, Chief Executive of RMS commented, “Over the past two years, RMSI has demonstrated the viability and growth potential of its GIS and software services business, establishing a strong track-record of success with its key customers and partners. At RMS, we are excited to capitalize on this success and re-invest the proceeds from the spin-off into initiatives and companies more closely aligned with our core risk management businesses, and in doing so, increase shareholder value.”