Coventry Industries Announces Closing of PeopleFirst Transaction - Changes Name to American Risk Management Group, Inc.

BOCA RATON, Fla.--(BUSINESS WIRE)--Sept. 7, 1999--

Coventry Industries Corp. (OTC BB:COVN) Tuesday announced that the previously announced transaction with PeopleFirst LLC was completed today. The Company's name will be changed as of the closing to "American Risk Management Group, Inc." in order to better reflect the future emphasis of the Company's business. In connection with the transaction, five directors have been elected to serve on the board of directors. Four of the directors, Stephen Rosedale, Ronald Wilheim, Steve Wilder and Simon Groner, were nominated by PeopleFirst. One director, Robert Hausman was nominated by the Company and will continue to serve on our board of directors and as the Company's President. Stephen Rosedale has been elected as Chairman of the Board.

Robert Hausman, President of the Company commented after the closing, "After an extensive amount of time and effort, we have restructured the Company and laid the foundation to build a very solid and substantial administrative services organization sharply focused on becoming a world class provider of these services."

Coventry has acquired PeopleFirst to function as an administrative services organization to provide small-to medium-sized businesses with comprehensive, fully integrated outsourcing solutions to human resource needs, including payroll management, workers' compensation risk management, benefits administration, unemployment services and human resource consulting services. PeopleFirst's services are designed to enable small and medium-sized businesses to cost-effectively manage and enhance the employment relationship by: (i) controlling the risks and costs associated with workers' compensation, workplace safety and employee-related litigation; (ii) providing employees with high quality health care coverage and related benefits; (iii) managing the increasingly complex legal and regulatory environment affecting employment; (iv) providing payroll and human resource administrative services that are reliable, accurate and delivered in a friendly and caring way; (v) outsourcing administrative noncore competency responsibilities and (vi) achieving scale advantages typically available to larger organizations. As of Sept. 1, 1999, PeopleFirst serves over 6,000 employees at more than 80 worksites in 22 states, primarily in the healthcare industry. These employees work for several clients engaged in various aspects of the health care industry ranging from nursing homes to home health care operations.

The Company's growth strategy is to be a preferred human resources partner in the healthcare and other areas by leveraging operational excellence, technology and strategic alliances to achieve market leadership. This strategy is based on the fact that the current Administrative Services and Professional Employment Organization industries are highly fragmented. According to the U. S. Small Business Administration, there are nearly six million businesses in the United States with fewer than 500 employees, employing over 52 million persons and with $1.2 trillion in aggregate annual payroll. The National Association of Professional Employer Organizations ("NAPEO") estimates that the PEO industry co-employs fewer than three million worksite employees, leaving approximately 49 million employees currently not served by the PEO industry. The Company believes that significant consolidation opportunities exist within the industry due to increasing industry regulatory complexity and capital requirements associated with developing larger service delivery infrastructures, more diversified services and more sophisticated management information systems.

The Company is currently in negotiations to acquire a large voluntary benefits insurance agency. The Company is also seeking to acquire one or more entities to both underwrite and sell life and health insurance to individuals and companies. The Company will offer various insurance products to the employees through voluntary benefit or payroll deduction programs and hopes to develop a network of company-owned agencies and independent agents.

American Risk Management Group, Inc., whose subsidiaries include companies involved in manufacturing, marketing and distribution, and human resource outsourcing services, is a growth oriented OTC Bulletin Board company.

Certain of the statements contained in the press release may be deemed forward-looking statements in accordance with the Private Litigation Reform Act of 1996. Such statements and other matters addressed in the press release involve a number of risks and uncertainties. Among the factors that could cause actual plans to differ materially from these statements and other matters are the risks and factors detailed, from time to time, in the company's reports with the U.S. Securities and Exchange Commission.