International Risk Group Enables Transformation of NASA Site

Denver, CO - December 4, 2003 - In a nationally precedent-setting agreement, International Risk Group's affiliate, International Risk Assumption Downey, was awarded a $20.5 million contract by the City of Downey, CA for the privatization and assumption of the environmental responsibility of the former National Aeronautics and Space Administration (NASA) Industrial Plant in Downey, CA. The contract enables the redevelopment of the former 96-acre NASA property and opens the door to 4,000 new jobs in the area.

By assuming the environmental liability associated with the property, International Risk Group paved the way for Downey to transform the site into a mixed-use retail, commercial, medical and media center. The redevelopment includes a 400,000 square foot retail center, a 1 million square foot Kaiser Permanente Medical Center, a school and public park, as well as a site for one of the largest film studios in the country and a space museum. With the additional purchase of nearby-acreage, the City estimates the project will cover a total of 160-acres.

"Through our extensive knowledge and experience in environmentally impaired real estate, the International Risk Group team was able to create a structure that allowed the City of Downey, the United States General Service Administration (GSA) and NASA to focus on the redevelopment of the Downey site," states Wayne Dorband, Chairman of International Risk Group. Mikk Anderson, who lead International Risk Group's team of engineering, legal, financial and risk management professionals in the transaction, added that, "The willingness of the City, the Federal government, the State of California, the developers and their respective teams to thoughtfully consider and execute the structure we assembled was vital to the consummation of a complex deal."

Darrell George, Community Development Director at the City of Downey, stated, "The City's experience in dealing with International Risk Group has been exemplary-especially given the complexities of the deal and the environmental unknowns." "We continually looked to the International Risk Group team for assistance in every way to position the property for productivity," he added.

According to George, another integral piece defining the actual structuring of the deal was the challenge of convincing NASA to privatize the site. George stated, "International Risk Group stunningly helped us convince NASA that privatization was the right way to go to accelerate the development of the property."

The site was the former home of the National Aeronautics and Space Administration Downey Industrial Plant. The facility was used over a 70-year period for aircraft manufacturing, research, production and the assembly of rockets and missiles including the Apollo Program and the Space Shuttle. During this period, hazardous substances were stored, used and inadvertently released on the property. Pollutants have been detected in soils and in the ground water beneath the site. Clean-up will be accomplished by an International Risk Group affiliate in conjunction with ARCADIS G&M, Inc.

"The broad scope of clean-up and liability transferred to the private sector, make this a unique brownfield transaction," stated W. James Biederman, an attorney and Senior Advisor at GSA, which acted in the capacity of a broker for the Federal government. He added, "Cost savings to the federal taxpayer include earlier elimination of expenses to maintain property no longer needed by the United States and increased efficiencies due to NASA being able to focus on its mission rather than environmental cleanup."

Clean-up activities will occur concurrently with the development of the commercial and hospital sites. Final soil management and the installation of required groundwater treatment facilities should be completed within 5 to 7 years.

The City expects to generate as much as $1.25 million annually from sales tax and other fees from retailers on the site. Downey Landing will comprise Downey Studios, a television and movie production facility on 78-acres of the property. In addition, Kaiser Permanente plans to relocate 82 departments to the proposed Downey Medical Center Campus, including a major regional hospital. The City has also dedicated 12-acres of the property for a major park and the Columbia Memorial Space Learning Center, showcasing the site's NASA history.

Darrell George stated that the City of Downey is most excited about the jobs component of the deal. "We're proud to be a part of stimulating thousands of job opportunities for the community."

International Risk Group, LLC, is an impaired asset investment banking firm headquartered in Denver, Colorado with offices in New Jersey, Houston and San Francisco. The firm specializes in acquisitions, divestitures, mergers, liability assumptions, public to private transfers, valuations and impaired asset advisory services for assets with valuations between $1 million and $1 billion and with liabilities between $1 million and $300 million. The firm represents both buyers and sellers, serving as finders, intermediaries and negotiators.

International Risk Group, LLC, headquarters is located at 7991 Shaffer Parkway, Suite 300, Littleton, CO 80127. Phone: 303.972.6633 Fax: 303.948.4155

Contact:

International Risk Group, LLC
James M. Gostic
303.972.6633