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IVG Board of Directors Votes to Rescind Acquisition of SES.

SES Files for Chapter 11 Protection to Facilitate Major Financial


HOUSTON, July 10 /PRNewswire/ --

IVG Corp. (OTC Bulletin Board: IVGG) (, today announces that SES-Corp., Inc., has filed a voluntary petition under Chapter 11 of the United Stated Bankruptcy Code. The bankruptcy filing, made by SES on July 9, 2001, in the United States Bankruptcy Court for the Eastern District of Michigan, has occurred as a result of actions by Michigan National Bank to suspend the bank accounts of SES and its affiliates. SES expects to emerge from bankruptcy with a reorganized, successful company.

Following the bankruptcy filing, the Board of Directors of SES has appointed Mr. Joseph Whall to serve as the company's new CEO.

Also on July 9, 2001, the Board of Directors of IVG voted to rescind the acquisition of SES-Corp, Inc. The IVG Board believes that the bankruptcy filing, the ongoing dispute between SES and Michigan National Bank, as well as SES' ongoing dispute with the Internal Revenue Service relating to tax years prior to the acquisition, present a picture of SES' financial condition that is different than at the time of the acquisition. As a result, the Board has determined that a right of rescission exists.

Completion of the recession is subject to approval of the terms of a written Rescission Agreement. Upon completion of the Rescission Agreement, Mr. Dennis Lambka and Mr. Ron Bray have agreed to relinquish their seats on the IVG Board of Directors.

Mr. Elorian Landers, President and CEO of IVG Corp., said, "While we continue to believe that the acquisition of SES would have created a strong platform to consolidate the PEO industry, we simply cannot endorse a decision to proceed with the transaction under the facts as we understand them today. In recent weeks, several complex issues have emerged that have severely hindered our ability to move forward with our consolidation strategy. Our decision today was based on what we felt was in the best interest of the Company and its shareholders."

According to Mr. Landers, "IVG Corp. still remains well-positioned to consolidate the multi-billion dollar PEO industry. Already, we are reviewing other alternatives with PEOs to execute our strategy. It is simply under a new consolidation platform that we will move forward. The rescission in no way effects our other operations or our business model and we continue to aggressively explore other portfolio companies"

IVG Corp. does not anticipate having to restate any reported financial information as a result of the rescission of the SES acquisition, as none of the currently filed public reports include SES financial results.

Background on Chapter 11

Chapter 11 of the U.S. Bankruptcy Code allows a viable company, like SES, to continue operating its business and managing its assets in the ordinary course of business. Congress enacted Chapter 11 to enable a debtor business to continue as a going concern to maintain jobs and maximize the recovery of creditors.

About IVG Corp., Inc.

IVG Corp. acquires and enhances revenue-generating companies with a compelling business model, technology and/or proprietary service. IVG Corp. provides a value-added corporate structure intended to enable its portfolio companies to quickly leverage their expertise and deploy their business strategy by utilizing the management, financial and corporate resources of the Company. IVG Corp. currently trades on the NASD OTC Bulletin Board under the symbol IVGG.

Safe Harbor Statement: This press release includes forward-looking statements, including statements relating to the business strategy of IVG Corp., and their ability to consolidate the PEO industry. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include, among others: risks relating to the ability of IVG Corp. management to successfully accomplish fund raising activities, the ability to achieve or sustain profitability; limited operating history; possible financing needs; risks associated with identifying and completing acquisitions; risks associated with the integration of acquired technologies, operations and personnel; risks of being deemed an investment company; exposure to unforeseen liabilities of acquired companies; the requirement to record additional future operating costs for the amortization of goodwill and other intangible assets, which amounts could be significant; business conditions in the e-commerce and Internet generally; the impact of market competitors and their product and service offerings; and the economic, competitive, governmental, technological and other factors identified in IVG Corp.'s filings with the Securities and Exchange Commission. These factors are described in further detail in IVG Corp.'s filings with the Securities and Exchange Commission, available online at

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Publication:PR Newswire
Geographic Code:4EUGE
Date:Jul 10, 2001
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