RCG's SunTrips Unit Announces Partnership with Mexicana Airlines.

CHARLOTTE, N.C. -- RCG Companies Incorporated (AMEX: RCG), one of the largest leisure-travel tour operators in the United States, announced today its wholly-owned SunTrips(TM) (http://www.suntrips.com) subsidiary has signed an exclusive partnership agreement with Mexicana Airlines.

Under the terms of the agreement, SunTrips has replaced its existing public charter flights originating from Oakland, CA to Cancun, Puerto Vallarta and Cabo San Lucas, Mexico with Mexicana Airlines' scheduled service. The Boeing 757 that SunTrips(TM) previously chartered out of Oakland operated by Ryan Air has been redeployed in Oakland to provide chartered SunTrips(TM) vacation packages from Oakland International Airport to Hawaii destinations.

Mike Pruitt, CEO of RCG, commented, "This agreement expands SunTrips' exclusive relationship with Mexicana Airlines, to now include both Denver and Oakland as gateways for its leisure vacation packages. SunTrips recently expanded its flights and vacation packages out of Denver by switching from a charter air operation to Mexicana Airlines' scheduled service. Our motto is 'Nobody Beats SunTrips' - and working with partners like Mexicana Airlines allows us to offer the best prices in the travel business, as well as the best service."

As an added amenity to better serve SunTrips' customers, the Mexicana Airlines scheduled service will provide in-flight complimentary cocktails, free movies, and a choice of hot meals will be served all flights.

SunTrips(TM), founded in 1977, maintains its headquarters in San Jose, California. SunTrips(TM) serves more than 180,000 passengers per year offering packaged tour and travel vacations to Honolulu, Maui, Kona, and Kauai from Oakland; to Costa Rica, Cancun, Mayan Riviera, Puerto Vallarta and Los Cabos from Oakland and Denver; to the Azores from Oakland; and, to Honolulu from Seattle and San Francisco. SunTrips(TM) has been providing the best value in vacation packages to Mexico and other warm weather destinations for the Denver market since 1996. SunTrips(TM) employs approximately 100 people.

RCG's planned acquisition of Farequest Holdings, Inc., which owns and operates one of the fastest growing online travel companies in the U.S., 1-800-CHEAPSEATS (www.1800cheapseats.com), will transform RCG from a predominantly offline tour operator into a full-service online and offline travel company. The combination of RCG's established tour operations with 1-800-CheapSeats' discount airfares, large online customer base, and online reservation technology, will position RCG to be a force in the online travel industry.

About RCG Companies Incorporated

RCG Companies Incorporated (www.rcgcompanies.com) is focused on delivering to its shareholders rapidly growing, relatively low-risk revenues. The majority of RCG's revenues are currently derived from its wholly owned travel service segment, Flightserv, Inc., which delivers leisure and vacation travel packages under the SunTrips(TM) brand, making Flightserv one of the largest leisure travel tour operators in the United States. RCG is also involved in the technology services sector, through its wholly owned software and information technology services unit, Logisoft Corp.

Statements in this news release about anticipated or expected future revenue or growth or expressions of future goals or objectives, including statements regarding whether current plans to grow and strengthen the company's existing network will be implemented or accomplished, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements in this release are based upon information available to the Company on the date of this release. Any forward-looking statements involve risks and uncertainties, including the risk that the Company will be unable to grow or strengthen its network due to a lack of capital, or will be unable to consummate the acquisition of Farequest Holdings, Inc, or that the benefits anticipated from the acquisition will not be realized, and that the Company may not realize anticipated cost savings or revenue growth opportunities associated with restructuring certain operational and financial policies, procedure, and contracts of SunTrips(TM). Additionally, forward-looking statements concerning the performance of the travel and leisure industry are based on current market conditions and risks, which may change as the result of certain regulatory, political, or economic events, a shift in consumer travel preferences, as well as those risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, which could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.