BrandPartners Announces Formation of New Subsidiary and Acquisition by Subsidiary of Certain Assets Aimed at Diversifying Target Markets.

NEW YORK -- BrandPartners Group, Inc. (OTCBB: BPTR), a provider of integrated retail environment services to the retail financial services sector, as discussed in its 1st quarter earnings release has formed Grafico Incorporated a new subsidiary.

Grafico has acquired certain assets of a design company and is intended to be a full-service advertising and marketing communications company that will seek to provide award-winning creative services to small businesses, Fortune 500 companies and not-for-profit organizations. Moreover, Grafico will seek to provide graphic design, branding and retail environment services to companies that operate sub-prime retail financial service centers.

Lou Costantini, who has worked closely with the retail financial services industry for more than a decade, will join BrandPartners' new subsidiary Grafico as Chief Executive Officer. His work has been lauded with more than 30 national and regional design awards along with numerous commendations from various financial services trade associations, and he was recognized for excellence by CBS Television in their Eye on Business.

James F. Brooks, Chief Executive Officer of BrandPartners, commented, "We believe that our new subsidiary, led by Mr. Costantini, represents an important step in our overall diversification efforts. While Grafico, which is planned to be a full services marketing communications company, will target various industries, it will specialize in the sub-prime retail financial services industry. The sub-prime retail industry has over 22,000 branches in the United States, and industry experts estimate growth to over 40,000 branches within five years. Mr. Costantini has, during the past decade, worked extensively with this industry's trade associations, key executives, and many companies in the industry to create more compelling branding and marketing communications programs." Mr. Costantini added, "I am excited to take on this new challenge and tap into the resources available to me via BrandPartners' extensive infrastructure. More importantly, I am eager to have the ability to offer a truly comprehensive, integrated service platform to the clients and industries that I have serviced for many years."

About BrandPartners Group, Inc.

BrandPartners Group, together with its wholly owned subsidiaries is a design, architecture and marketing Company creating retail environments through a range of integrated financial facility solutions and services. The Company's comprehensive suites of services include Branch Planning, Architecture, Facility Construction, Market Intelligence and Consulting, Strategic Business Planning, Brand Translation, and Retail Merchandising. The Company provides the design and branding needs of institutions of all sizes, including worldwide, regional and community banking. The Company has provided its design, architecture, and/or marketing expertise to more than 1,600 financial services companies, touching more than 24,000 branches of U.S. financial institutions.

Cautionary Language

Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such factors include among others: the Company's ability to successfully complete contracts and receive timely payment, continued services of executive officers of the Company and its subsidiary; the Company's ability to refinance or obtain an extension of its existing debt; its ability to continue to obtain waivers of covenants and other defaults under its debt instruments and credit facilities; its ability to identify appropriate acquisition candidates, finance and complete such acquisitions and successfully integrate acquired businesses; changes in its business strategies or development plans; competition; and its ability to grow within the financial services industries. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.