National Investment Managers Inc. Reports on Second Quarter
Recapitalization Initiative On Track

DUBLIN, OH -- (Marketwire) -- 08/16/10 -- National Investment Managers Inc. (OTCBB: NIVM), a nationally-based and regionally-operated retirement plan administration and investment management company, with over $10 billion of assets under administration, today reported its second quarter 2010 results and subsequent events.

The Company previously announced that it had engaged Carl Marks Advisory Group to advise and assist in exploring, evaluating and implementing one or more strategic alternatives for the recapitalization of the Company, including refinancing its current debt, raising capital and/or selling the Company to a third party. The Company reports that its recapitalization process is well under way, with a number of interested parties reviewing a Confidential Information Memorandum and responding with interest. The Company further reports that it has continued to meet the financial, operational and recapitalization milestones to the satisfaction of its lenders.

Second quarter revenue was approximately $10.6 million compared to about $14.1 million for the second quarter of 2009. EBITDA SBC (earnings before interest, taxes, dividends, depreciation, amortization, change in derivative financial instruments and stock-based compensation) for the second quarter of 2010 was approximately $1.6 million compared to about $4.7 million for second quarter 2009. Net loss before preferred stock dividends for the quarter ended June 30, 2010 was approximately $482 thousand with preferred dividends of approximately $489 thousand, resulting in a net loss available to common shareholders of approximately $971 thousand, or ($0.02) per fully diluted share. For the same period in 2009, net income before preferred stock dividends was approximately $2.5 million with approximately $494 thousand in preferred dividends, resulting in net income available to common shareholders of approximately $2.0 million, or $0.03 per fully diluted share. The weighted average number of common shares outstanding stood at roughly 40.1 million at the end of the second quarter 2010 and 39.6 million at the end of the same period in 2009.

Steven J. Ross, Chief Executive Officer of NIVM, said, "Our focus during the second quarter was to work with Carl Marks to launch a process toward a refinancing or sale that will strengthen the Company and its business going forward, and we are pleased with the progress and responses to date. While a significant amount of management time has been spent on that initiative, our 2010 projections are consistent with the financial plan prepared for our lenders and the Carl Marks initiative."

John Davis, President and Chief operating Officer, added, "Second quarter revenue and EBITDA was impacted by delays in plan administration billing as a result of the wind up of EGTRRA restatement activity for defined contribution plans as well as processing delays associated with the newly required EFAST2 electronic filing requirements. We expect that plan administration revenues will catch up in the third quarter and, along with the increase of EGTRRA restatement activity for defined benefit plans, we expect that third quarter revenue and EBITDA will be significantly higher than second quarter."

About National Investment Managers Inc.
National Investment Managers Inc. is a holding company and a consolidator of pension plan administration, investment management and insurance businesses. Its strategy includes a custom-tailored acquisition formula for each acquired business, which allows local and regional entities to retain their autonomy while benefiting from the reach that a national presence offers. In addition, the Company's approach offers entrepreneurs in these businesses an exit strategy suited to their specific needs. National Investment Managers targets businesses with stable cash flows and high operating margins to ensure successful integration of operations once a sale is concluded. Acquired companies continue to operate under their own brands, usually with minimal staff turnover to ensure that relationships of many years' standing are not disrupted. At the same time, these formerly small businesses can cross-sell related financial services under the National Investment Managers umbrella and enjoy administrative and other support from around the country.

The member firms of National Investment Managers provide pension administration services, retirement planning, defined benefit services, asset preservation, general insurance and asset management services. Wholly-owned subsidiaries of National Investment Managers are based in Anchorage, AK; Laguna Hills, CA; Marina Del Rey, CA; Denver, CO; Southington, CT; Lake Mary, FL; Pikesville, MD; North Attleboro, MA; Haddonfield, NJ; New York City, NY; Yorktown Heights, NY; Beaverton, OR; Harrisburg, PA; Horsham, PA; Wayne, PA; Warwick, RI; Houston, TX; and Seattle, WA. NIVM's corporate headquarters are located in Dublin, OH.

Note: This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company's future prospects. They are based on the Company's current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to raise capital, identify and complete acquisitions, integrate the acquired businesses, improve upon the operations of the acquired business units and generate cash and profits. Further information about these and other relevant risks and uncertainties may be found in the Company's filings with the Securities and Exchange Commission.

Steven J. Ross
(614) 923-8822

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