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INTER-REGIONAL FINANCIAL GROUP TO CREATE NEW MINNEAPOLIS-BASED OPERATIONS SUBSIDIARY; NAMES JERRY HAYES PRESIDENT OF NEW SUBSIDIARY

 INTER-REGIONAL FINANCIAL GROUP TO CREATE NEW MINNEAPOLIS-BASED


OPERATIONS SUBSIDIARY; NAMES JERRY HAYES PRESIDENT OF NEW SUBSIDIARY
 MINNEAPOLIS, May 13 /PRNewswire/ -- Inter-Regional Financial Group, Inc. (NYSE: IFG), parent company of regional broker-dealers Dain Bosworth Incorporated, Minneapolis, and Rauscher Pierce Refsnes, Inc., Dallas, today announced plans to create a new Minneapolis-based subsidiary by first-quarter 1993 that will clear and settle the trades of both of its broker-dealers. Currently, each firm processes its trades separately.
 The company also announced that Jerry W. Hayes, formerly senior vice president of Marquette Bank, Minneapolis, has been named president of the new subsidiary effective immediately. Hayes also will oversee IFG Information Services, Inc., a subsidiary that provides data processing and information technology to IFG and its subsidiaries. He will report to John C. Appel, executive vice president and chief financial officer of IFG.
 According to Irving Weiser, IFG's president and chief executive officer, "The creation of a separate operations subsidiary represents a major strategic move that will allow IFG to provide higher quality client service on a more cost-effective basis over the long term, and will position IFG to grow more efficiently in the future. The new organizational structure also will allow IFG to develop a comprehensive and strategic vision for operations and information technology that supports the competitive strategies of our regional brokerage firms."
 Weiser added, "We are striving to achieve the economies of scale of a larger firm while retaining the independence, and hence the effectiveness, of our regional brokerage firms. To be dominant forces in their marketplaces, our broker-dealers must remain -- and will remain -- regionally based, regionally focused and regionally managed."
 While the organizational structure of the new Minneapolis-based subsidiary will not be finalized for several months, the company said it expects the new organization to be staffed by both Dain Bosworth and Rauscher Pierce Refsnes operations employees with a net total of about 45 positions being eliminated in the process. The company estimates that approximately 45 new positions will be added to the company's current operations capability in Minneapolis to handle the increased workload and approximately 90 positions will be eliminated in Dallas. The company also said some Rauscher Pierce Refsnes operations functions and employees will transfer to other departments within Rauscher Pierce Refsnes and a small operations liaison staff will remain in Dallas. Management believes this organizational restructuring will not have a material impact on IFG's earnings.
 David A. Smith, president and chief executive officer of Rauscher Pierce Refsnes and an executive vice president of IFG, stated that Dallas-based operations employees will be encouraged to consider jobs with the new subsidiary in Minneapolis, and Rauscher Pierce Refsnes employees who stand to lose their jobs as a result of the organizational change will receive incentive pay to stay during the transition, along with severance pay and outplacement services to assist them in their job search once the transfer of operations to the new subsidiary is completed. "While this was obviously a difficult decision because of its impact on people within Rauscher Pierce Refsnes, I strongly believe that the creation of the new operations subsidiary is the right move for both IFG and its broker-dealers from a client-service and long-term strategic standpoint," Smith said.
 Smith also said the organizational change will not affect RPR Clearing, a St. Louis-based division of Rauscher Pierce Refsnes that markets the firm's clearing services and provides operations liaison to more than 100 correspondent brokerage firms.
 Commenting on the selection of Hayes to head the new subsidiary, Weiser said Hayes is "the ideal leader for this new organization because of his strong orientation to client service and the fact that his 20- year track record in the financial services industry includes management experience in both operations and electronic data processing systems." At Marquette Bank, Hayes was responsible for retail banking, institutional investments, management information systems and bank operations. Prior to joining Marquette Bank in 1989, Hayes served for two years as vice president of new business development at Cytrol, Inc., a privately held company providing consulting and custom software development for the securities industry. From 1982 to 1987, he held several posts at Norwest Bank, Minneapolis, including senior vice president, futures systems department; senior vice president, trust operations; and vice president, retail operations.
 Inter-Regional Financial Group, Inc., provides full-service securities and investment banking services in 22 states through its subsidiaries, Dain Bosworth Incorporated, Minneapolis, and Rauscher Pierce Refsnes, Inc., Dallas. The parent company's common stock is traded on the New York Stock Exchange under the symbol IFG.
 -0- 5/12/92
 /CONTACT: B. J. French of IFG, 612-371-2363/
 (IFG) CO: Inter-Regional Financial Group ST: Minnesota IN: FIN SU: PER


AL -- MN002 -- 9531 05/13/92 09:37 EDT
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Publication:PR Newswire
Date:May 13, 1992
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