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RODMAN & RENSHAW CITES NEAR COMPLETION OF RESTRUCTURING; ANNOUNCES ADDED FINANCIAL SUPPORT FROM MAJORITY STOCKHOLDER

CHICAGO, March 8 /PRNewswire/ -- Rodman and Renshaw Capital Group, Inc. (NYSE: RR) announced today that the restructuring of its wholly-owned brokerage subsidiary, Rodman & Renshaw, Inc., is now essentially complete, and that the company will receive substantial additional financial support from its majority stockholder, the Mexican brokerage firm Abaco Casa de Bolsa. In addition, although it will report a loss for the past year and expects to report a substantially lower loss for 1996 as a whole, Rodman expects to achieve profitability by the fourth quarter of 1996,

The company announced today that Abaco has agreed to provide $9.5 million in additional equity during the next two months. Jorge Lankenau, Chairman of both Rodman and Abaco, stated, "Abaco remains fully committed to supporting Rodman with the resources it needs. We are confident that Rodman has taken the steps necessary to become profitable and to make a valuable contribution to Abaco Grupo Financiero." Its support may also include the conversion of debt to equity or the conversion of short-term debt to long-term debt.

In addition to Abaco Casa de Bolsa's commitment, Rodman's senior management is in the process of exploring the possibility of investing up to an additional $1 million in new capital in the company, and also is exploring the possibility of permitting certain additional Rodman employees to invest directly in the firm in the near future. "With this contribution, the current management team wants to demonstrate its support and long-term commitment to Rodman & Renshaw as well as to Abaco. We believe that Rodman has a great future, and we plan to be a part of it," stated Chuck Daggs, Rodman's President and Chief Executive Officer.

Since Abaco Casa de Bolsa acquired a majority interest in the company in December 1993, Rodman has divested the majority of its futures business; substantially downsized and refocused its fixed income business; hired substantial numbers of persons employed in the investment banking, research and institutional equity operations of New York-based Mabon Securities to support its efforts in these areas; and has become a fully disclosed introducing broker utilizing Correspondent Services Corporation, a subsidiary of PaineWebber, Inc., as its clearing broker.

As restructured, Rodman has become an integrated research driven investment banking, institutional equity, fixed income, and retail firm, concentrating on middle market U.S. corporations and Mexican corporations. In particular, Rodman now believes itself poised to utilize the synergy available to it through its associations with its Mexican owners. Due substantially to this restructuring effort, the Company expects to report a loss for the year ended December 31, 1995, of approximately $29 million.

Chuck Daggs commented: "Regrettably, our restructuring program has taken longer than we expected, but with the continued support of our parent company, we are now confident that we are in the right businesses with the market focus we have been working to achieve. It has been a difficult path, but our most significant problems should be behind us, and we are poised to achieve profitability."

Rodman & Renshaw, Inc., which is headquartered in Chicago, is a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. It has offices in Chicago, New York, Boston, Kansas City, San Francisco and Dallas. Abaco Casa de Bolsa, S.A. de C.V., a subsidiary of Abaco Grupo Financiero, S.A. de C.V. of Monterrey, Mexico, owns 69.6 percent of the
outstanding shares of Rodman & Renshaw Capital Group, Inc.
 -0- 3/8/96


/CONTACT: James D. Van De Graaff, General Counsel of Rodman & Renshaw, 312-526-2780; Victor Emmanuel, Managing Director of Kerr Kelly Thompson, 203-622-1723 ext. 305/

(RR)

CO: Rodman & Renshaw, Inc.; Rodman & Renshaw, Inc., ST: Illinois IN: FIN SU: RCN

DW -- NYF066 -- 1796 03/08/96 19:00 EST
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Date:Mar 8, 1996
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