euro adhoc: Fortune Management Inc. / Mergers - Acquisitions - Takeovers / -Fortune has acquired the business of HLSP Holdings Corp. -New Private Equity Division "FHLSP Private Equity Group, Inc." established -Paul Bagley becomes new Chairman of the Board of Fortune -Jack Takacs becomes new President, Hermann Seiler new COO (E)

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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08.07.2005

Zug/Switzerland, July 8, 2005 - The board of Fortune Management Inc., (General
Standard, ISIN USU026281027, WKN: A0BLYY) has - with resolution on July 7, 2005
and following the Letter of Intent on June 2, 2005 - decided to acquire the
private equity business and managing principals of HLSP Holdings Corp., a member
of The Stone Pine Group of Companies, Denver, in exchange for the issuance of
33,584,600 restricted shares of Fortune common stock. Primarily, HLSP Holding
Corp. comprises of a pipeline of private equity transactions in differing stages
of negotiation. Such transactions include the acquisition of a number of private
equity management firms in various countries as well as an agreement with a
major international investment bank for the underwriting of a substantial new
private equity
fund.

HLSP will integrate its business into Fortune by creating a new private equity
division which will operate under the name "FHLSP Private Equity Group, Inc.".
(FHLSP). FHLSP’s principal purpose will continue to be the consolidation of
private equity management companies on an international basis. For Fortune, this
acquisition represents a consequent expansion and diversification of its core
roll-up strategy into an additional asset management category with a global
reach. The combination of both industry roll-up strategies is expected to
increase and expedite the volume of funds under management.

The expansion of Fortune Management Inc. is also reflected by the new
configuration of the management and board of directors. Ulrich Beckmann left the
Board of Directors to focus on his task as Executive Chairman of TMS-ComTelco.
He was replaced by Paul Bagley, who will take over the position of Chairman. The
management is enlarged by Jack Takacs, President, and Hermann Seiler, COO
Private Equity.

The new board and management team therefore consists of:

Paul Bagley, Chairman
Michael Dieckell, Member
Michael Kloter, Member

René Müller, CEO
Jack Takacs, President
Jürg Briner, CFO
Rolf Schneebeli, COO Asset Management
Hermann Seiler, COO Private Equity
Mark Kübler, Corporate Secretary

Fortune now enters a one month’s transition period in which the organization and
internal procedures are being harmonized.

End of ad hoc release

Comments on the acquisition

Michael Dieckell of Fortune says: "HLSP and its executives bring to Fortune a
wealth of experience and an unparalleled network in the private equity industry.
Working towards the same goals of acquiring asset managers we are able to
integrate HLSP’s business into our organisation and processes whilst protecting
the integrity of both initiatives. Hence broadening our economic base and
accelerating the execution of our business plan."

Paul Bagley of HLSP says: "Over the past five years the private equity
management business has become global. The opportunities we intend to pursue in
our new affiliation with Fortune will reflect this trend. We look forward to
working with Rene Müller and his team to extend Fortune's acquisition strategy
into the very dynamic private equity area."

CV of Paul Bagley, new Chairman of the Board of Fortune

Mr. Paul Bagley is a founding partner of Stone Pine Companies and served on the
board of Hamilton Lane Advisors, Philadelphia. He is Chairman and CEO of FCM
Fiduciary Management Co. and Consolidated Capital of North America, Inc. and
Director of Hamilton Lane Private Equity Partners L.L.C., listed in Dublin. For
over 30 years, Mr. Bagley has been involved in investment banking activities. He
held senior positions at Shearson Lehman Hutton Inc. and its predecessor, E.F.
Hutton & Company Inc. He served as Chairman of the Board of Directors of Silver
Screen Management, Inc., International Film Investors, Inc., America First and
FFCA, and as founding Chairman of Silver Screen Partners, and as Director of
Hollis-Eden Pharmaceuticals, Inc. and LMC Corporation. Mr. Bagley has a BS from
the University of California, Berkeley and an MBA from the Harvard Business
School.

CV of Jack P. Takacs, new President of Fortune and CEO of FHLSP

Mr. Takacs is a partner and managing director of The Stone Pine Companies and
HLSP. He directed the activities and strategy in the areas of structured finance
and private equity for over ten years. During his tenure, he was also the CEO of
Pacific USA Corp. and Pacific Holdings, the US investment division of Pacific
Electric Wire & Cable Co. Ltd (a Taiwanese industrial conglomerate). Before that
he served as head of the investment and principal transaction business of GKM, a
NYSE investment banking firm and was the founder and principal of various
real-estate, equipment and auto-finance companies.

CV of Hermann Seiler, new COO of Fortune´s Private Equity Division and President
of FHLSP

Mr. Seiler was a long time Executive of Deutsche Bank, mainly serving in
different capacities in Frankfurt, New York and London, in the investment
banking area. He was founding member of Deutsche Bank’s new project finance
business, instrumental for arranging over USD 1 bn in project financings. Mr.
Seiler built Deutsche Bank’s worldwide IT organisation for the Investment Bank,
directly responsible for annual budgets of over USD 1 bn. He was also
instrumental in arranging several Private Equity investments in Private Equity
funds as well as managing direct investments in new businesses. He also
developed Deutsche Bank`s strategy for the creation of the Transaction Bank. He
served on various Boards such as the Technology Committee of Deutsche Boerse,
Deputy Chairman of the Board of GZS and Chairman of the Board of Pago. He was
instrumental in assisting the launch of Deutsche Terminbörse as well as of the
electronic trading system XETRA. Mr. Seiler has a summa cum laude degree in
Mathematics and Quantum Mechanics from the TH Darmstadt.

Profile of Fortune Management Inc.:
FORTUNE Management Inc., Zug, Switzerland, focuses on building a network of
independent asset management companies, mainly in Switzerland, and private
equity managers on a global basis. It has subsidiaries in the Swiss cities of
Zug, Zurich and Geneva, as well as in Dubai. FORTUNE aims to acquire majority
stakes in such companies. These asset managers are then integrated into the
Group, thereby relieving them of as much of their middle office administrative
workload as possible. The resulting economies of scale contribute to improving
the cost-income ratio. Research and portfolio management support is provided
with a view to enhancing risk-adjusted returns for investment clients. The asset
managers’ relationships with their clients and custodians remain intact, and the
firm continues to trade under its established name.

FORTUNE Management Inc. was created from the former ComTelco International Inc.
at the end of 2003 following a strategic reorientation. Its stock (ISIN: USU
026281027) is traded on the regulated market (General Standard segment) of the
Frankfurt stock exchange.

Further inquiry note:
Fortune Management Inc.
Christian Hillermann
Investor Relations Manager

Tel.: +49 40 / 23608-897
Fax: +49 40 / 23608-500
Email: [email protected]

end of announcement euro adhoc 08.07.2005 02:58:38
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emitter: Fortune Management Inc.
Bahnhofstr. 10
CH-6301 Zug
phone: +41(0) 41 727 10 40
FAX: +41(0) 41 727 10 41
mail: [email protected]
WWW: http://www.fortune-management.com
ISIN: USU026281027, USU026281100
indexes:
stockmarkets:
sector: Financial & Business Services
language: English

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