Ernst & Young Continues to Guarantee Its Independence as Statutory Auditor.

Business Editors

ATLANTA--(BUSINESS WIRE)--June 15, 2004

Ernst & Young Belgium sells its Associations Management Department

(EYAM) to the Kellen Company, creating Kellen Europe

Ernst & Young Belgium is selling its department Association Management (EYAM) to The Kellen Company, a US-based firm specialised in association management, meetings management, public relations, government affairs and cyberservices. The sale fits in with Ernst & Young's strategy of fully guaranteeing the independence of its statutory auditors within the framework of the law on Corporate Governance. Ernst & Young Association Management is already working in a close partnership with The Kellen Company since 2002. With this acquisition, The Kellen Company opens its first subsidiary outside the US. In the near future The Kellen Company will look for further European expansion out of its new European headquarters in Brussels.

"The sale of Ernst & Young Association Management fits into our strategy of focusing on our core activities and of giving the maximum guarantee of independence to our statutory auditors, following the Belgian Law on Corporate. In a small country like ours, such a law very quickly translates into a restraint on the growth of a dynamic service line such as EYAM. After the sale of Ernst & Young Actuarial Services earlier this year, we want to offer Association Management the opportunity for further expansion through selling the department," says Gust Herrewijn, Managing Partner Ernst & Young Belgium.

"We are very satisfied that we were able to sell EYAM to the Kellen Company. The Kellen Company is a very dynamic organisation with a similar business philosophy, common growth expectations and a shared vision on the future, three key arguments for us, which are important in order to ensure the bright future of EYAM and its people," Gust Herrewijn adds.

The Kellen Company is an Atlanta-based company specialised in association management, public relations, government affairs and cyberservices. The company has 4 offices in the US, employing 140 people. With the acquisition of EYAM the firm will open its first subsidiary outside the US. Kellen Europe will form the basis of the company for servicing the EU market out of its Brussels office. The combined company will be the second largest association management company worldwide, serving 70 client associations and employing 160 people, with an estimated first year revenue of around 15 million euro. Alfons Westgeest, currently partner of Ernst & Young Association Management, will stay in charge as Managing Partner of Kellen Europe and will join the senior management of the Kellen Company.

Peter Rush, President of the Kellen Company says: "Our main reasons for this acquisition are to increase value for all employees to increase our ability to deliver high quality professional services to our clients. This combination and all the resources it brings together will improve business opportunities, enhance future viability, and strengthen management and other operations. It will increase our ability to deliver a cost effective spectrum of professional services to our clients in the United States and Europe. We want to build up our European client service network through this new Brussels based Kellen company, which inherits the knowledge and experience from an excellent established firm in EYAM."

Alfons Westgeest, currently partner of Ernst & Young Association Management and future Managing Partner of Kellen Europe, adds: "Being part of Ernst & Young was an enriching period, but we have to move on. For us it is very important to be connected to a like-minded quality company that shares our vision on business. There are many styles of management and many levels of profitability in the association management and communications industries. Together with the Kellen Company, we both believe deeply in client focus, quality and integrity in the way we conduct our businesses, in a profitable way. This was a very important decisive condition to link ourselves to the Kellen Company."

Web sites for further information:

www.kelleneurope.com, www.ey.com/global/content.nsf/Belgium_E/Ernst_&_Young_Europe