Knight Vale & Gregory Acquisition Extends RSM McGladrey's Reach to Northwest; Mid-sized Businesses to Get Expanded Services from National Accounting and Consulting Firm.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 4, 2001

RSM McGladrey, Inc., a national accounting, tax and consulting firm serving mid-sized businesses, becomes a major player in the Puget Sound area today with the acquisition of Knight Vale & Gregory (KVG). KVG, founded in 1921, is one of the Pacific Northwest's largest accounting firms with offices in Washington state cities of Seattle, Tacoma, Olympia and Renton.

"Combining our national resources with Knight Vale & Gregory's regional presence accelerates our strategy to be the leader with mid-size businesses--their one-stop solution for business advice services," said Tom Rotherham, chief executive officer of RSM McGladrey. "KVG has a strong record of serving mid-sized and owner-managed firms, as well as individuals. This is a solid foundation for building RSM McGladrey's presence in the Puget Sound area."

"You could say that we've renamed the team without changing the lineup," explained Mark Williams, KVG president. "Everyone in our four Puget Sound offices is excited about joining RSM McGladrey, a strong, national contender that plays our game--helping middle-market, owner-managed firms win."

To assure independence for attest services, including audits and reviews, KVG's attest assets have been acquired by McGladrey & Pullen, LLP, a Minneapolis-based, independently owned, national certified public accounting firm. Though separate, RSM McGladrey and McGladrey & Pullen work together to serve clients' consulting and accounting needs from more than 100 offices nationwide. McGladrey & Pullen Tax Services, LLC, an independently owned firm, acquired KVG's tax-related operations.

Knight Vale & Gregory has served Puget Sound area clients for 80 years, and for 10 years has been a member of the McGladrey Network, an affiliation of independent accounting firms with more than 70 members in the United States and Puerto Rico. KVG merged with both Kueckelhan Crutcher and Company of Seattle and Clees Miles CPA Group of Olympia during 2000. Its staff of more than 150 people serves clients in a variety of industries including financial institutions, not-for-profit organizations, seafood and maritime businesses, real estate companies, manufacturing and distribution companies, and private individuals. No staff changes are anticipated, according to Williams, who said clients will continue to be served by the same service teams.

RSM McGladrey, Inc. is a leading national accounting, tax and consulting firm that focuses on serving the needs of fast-growing, mid-sized companies, which generally includes businesses with $5 million to $250 million in annual revenues. With more than 3,000 employees and 100 offices nationwide, RSM McGladrey is the U.S. member of RSM International, the seventh-largest accounting, tax and consulting organization in the world, and is a subsidiary of H&R Block (NYSE:HRB).