HOUSTON, Aug. 7 /PRNewswire-FirstCall/ -- Sanders Morris Harris GroupInc. (Nasdaq: SMHG) today announced that it is writing off its $3 millionloan to Ronco Corp. The write off will be made on the Company's secondquarter earnings statement, which is expected to be released on or aboutAugust 9th. Sanders Morris Harris Group made the subordinated loan in 2006 inconjunction with another lender's senior debt facility in the hope andbelief it would enable Ronco to resuscitate its faltering business. "Thecombination of the two financing sources was designed to provide thecapital needed to return Ronco to profitability. However, despite the loansand successor management's continued efforts, Ronco's revenue base haddropped too far to recover and Ronco filed for Chapter 11 in June," saidBen T. Morris, Chief Executive Officer. Ronco announced late last week thatit would sell its remaining assets to the sole bidder in the bankruptcy foran amount that will be insufficient to pay off its senior lender. The loss will not be of significance to Sanders Morris Harris Group'scapital base. It will impact second quarter earnings per share byapproximately $0.07 per share after tax and is unrelated to the Company'score merchant portfolio. Sanders Morris Harris Group is a financial services holding companyheadquartered in Houston that manages $15.8 billion in client assets. Thesubsidiaries and affiliates of Sanders Morris Harris Group deliver superiorwealth advisory, asset management, and capital markets services toindividual and institutional investors and middle-market companies. Itsoperating entities are Edelman Financial Center, Salient Partners, SalientTrust Co. LTA, SMH Capital, SMH Capital Advisors, and Select Sports Group.Sanders Morris Harris Group has over 600 employees in 21 states. Additionalinformation is available at http://www.smhgroup.com . In addition to the historical information, this press release containscertain forward-looking statements under federal securities laws, includingstatements regarding Sanders Morris Harris Group's expected future businessprospects, revenue and income. These forward-looking statements are basedupon current expectations and involve certain risks and uncertainties thatcould cause actual results to differ materially from any such statement.These risks and uncertainties, many of which are beyond the company'scontrol, include but are not limited to (1) trading volume in thesecurities markets; (2) volatility of the securities markets and interestrates; (3) changes in regulatory requirements which could affect the demandfor the company's services or the cost of doing business; (4) generaleconomic conditions, both domestic and foreign, especially in the regionswhere the company does business; (5) changes in the rate of inflation andrelated impact on securities markets; (6) competition from existingfinancial institutions and other new participants in the securitiesmarkets; (7) legal developments affecting the litigation experience of thesecurities industry; (8) successful implementation of technology solutions;(9) changes in valuations of the company's trading and warrant portfoliosresulting from mark-to-market adjustments; (10) dependence on keypersonnel; (11) demand for the company's services; and (12) litigation andsecurities law liabilities. The company does not undertake any obligationto update or revise any forward-looking statement.
