Exhibit 99.1
November 2, 1999
RTW, INC. AND ITS MAJORITY STOCKHOLDERS ARE SEEKING A NEW
MAJORITY INVESTOR
MINNEAPOLIS — RTW, Inc. (Nasdaq: RTWI) and
David C. Prosser, RTW’s Chairman, announced today that
a group consisting of Mr. Prosser, members of his family,
and Alex Fjelstad, an RTW director and former RTW executive, have
retained Goldsmith Agio Helms Securities, Inc. to explore a sale
of the group’s shares to a new strategic investor in RTW.
The group holds a total of 6,382,896 shares or approximately 52%
of all outstanding shares. Any sale of the group’s shares
would require approval by RTW’s Board. The Board has
appointed a special committee of independent directors to
evaluate any proposed transaction, and the committee has retained
Hales & Company as its financial advisor to assist in this
process.
The proposed sale is being pursued by the Prosser group for
personal financial and estate planning purposes, and does not
reflect a lack of confidence in management or the Company’s
future. RTW’s Board respects these objectives and will
cooperate with the Prosser group and Goldsmith Agio Helms
Securities, Inc. in their efforts to identify a buyer for their
shares. At the same time, the Board is enthused about the
Company’s prospects as an independent public company and the
opportunity to build shareholder value following the current
business plan. The contemplated sale by the Prosser group offers
the potential for a strategic partnership, which could enhance
the Company’s pursuit of its business plan for the benefit
of RTW’s remaining shareholders.
RTW, Inc. based in Minneapolis, Minnesota, manages disability
products and services for employers. Primary among its disability
products and services is a workers’ compensation management
system designed to lower employers’ costs and return
injured employees to work as soon as possible. RTW, Inc. combines
its proprietary management system, the RTW SOLUTION®, with
insurance products underwritten by an RTW subsidiary, American
Compensation Insurance Company. RTW offers its services to
employers in Minnesota, Wisconsin, South Dakota, Colorado,
Missouri, Illinois, Kansas, Michigan, Indiana, Massachusetts,
Connecticut, Rhode Island and New Hampshire.
Certain items in this release are forward-looking statements,
which are made in reliance upon the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among other things, (i) general
economic and business conditions; (ii) interest rate
changes; (iii) competition and the regulatory environment in
which the Company operates; (iv) claims frequency;
(v) claims severity; (vi) the Company’s ability to
manage both its existing claims and new claims in an effective
manner; (vii) the number of new and renewal policy
applications submitted by the Company’s agents;
(viii) the Company’s ability to successfully introduce
new products and services; (ix) the ability of the Company
and its third party providers, agents and reinsurers to
adequately address year 2000 issues; and (x) other factors
as noted in the Company’s filings with the SEC. This
discussion of uncertainties is by no means exhaustive but is
designed to highlight important factors that may impact the
Company’s future performance.
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