Business Editors

CHARLOTTE, N.C.--(BUSINESS WIRE)--RCG--
RCG Companies Incorporated (AMEX:RCG) is today providing
a corporate and business update and providing more detailed
information regarding its recently acquired SunTrips(TM) and Vacation
Express(TM) units.

Acquisition Background

In November 2003, RCG's wholly-owned travel services subsidiary,
Flightserv, Inc. (http://www.flightserv.com), acquired SunTrips(TM)
and Vacation Express(TM), which together make Flightserv one of the
largest leisure travel tour operators in the United States.
SunTrips(TM) and Vacation Express(TM) travel packages are marketed and
sold directly to the consumer as well as by more than 2,000 travel
agencies across the United States. The two companies are both well
established and highly regarded brands within the industry, boasting
long-standing relationships with top industry suppliers. Together,
their significant global buying power enables their ability to offer
the best possible vacation package values available.

-- SunTrips(TM) (http://www.suntrips.com) was founded in 1976 and
maintains its headquarters in San Jose, CA. Vacation packages,
which include hotel and air, originate from Oakland and Denver
and fly to the Hawaiian Islands, Mexico, Dominican Republic,
Costa Rico and the Azores. SunTrips employs approximately 130
people.

-- Vacation Express(TM) (http://www.vacationexpress.com) was
founded in 1986 and maintains its headquarters in Atlanta, GA.
Vacation packages, which include hotel and air, originate from
Atlanta, New Orleans, Charlotte, Cincinnati,
Baltimore-Washington, Indianapolis, Louisville, Memphis and
Nashville and fly to a variety of locations throughout the
Caribbean and Mexico. Vacation Express employs approximately
135 people.

Initial Expense Reductions and Strategic Adjustments

Within the first three months of completing the acquisitions of
SunTrips(TM) and Vacation Express(TM), RCG management has instituted
its first round of cost-savings measures. These measures are expected
to be in full effect by April 23, 2004, and when completed, will
result in approximately $5.5 million of cost savings annually. RCG
management believes that additional measures planned to be instituted
over the next twelve months, including renegotiation or consolidation
of various contracts and leases, will result in additional annual cost
savings in the millions of dollars.
Specifically, RCG recently announced that on April 23, 2004,
Vacation Express(TM) will move its hub from Atlanta Hartsfield Airport
to Orlando Sanford Airport. The move, when completed, will result in
an immediate cost savings of approximately $3 million annually.
Relocating the hub to Orlando will also provide Vacation
Express(TM) the opportunity to realize increased revenue by offering
vacation packages to the Orlando area, the number one tourist
destination in the United States, thereby making it easier to market
and fill "empty seats". These "empty seats" are created when flying
six aircraft from six different gateway cities into one hub and then
off-loading passengers onto five aircraft which fly to the end-point
Caribbean destinations, leaving the sixth aircraft in the hub to serve
as a spare aircraft.
At SunTrips(TM), RCG's management has both changed routes and
consolidated certain flights resulting in reduced expenses of
approximately $2.5 million annually. Additionally, SunTrips(TM) has
been able to apply certain credits to one of its airline vendors which
have been used to offset operational costs.
RCG believes there is an opportunity to bring about significant
additional cost savings at both SunTrips(TM) and Vacation Express(TM)
by implementing more efficient aircraft operations as well as
renegotiating and replacing contracts with major aircraft and
operational support vendors that were in place at the time of the
acquisitions. RCG has also instituted at both companies aggressive
marketing and sales programs which are producing immediate results.

Recent Management Appointments

In January, RCG appointed Mr. Carlisle Vason, a twenty-two year
veteran in the leisure travel industry, as President of SunTrips(TM)
and Vacation Express(TM). Mr. Vason was most recently the acting
President of Air Jamaica Vacations. Prior to his four year tenure at
Air Jamaica Vacations, Mr. Vason spent approximately eight years at
World Technology Systems ("WTS"), where he served as Vice President
and General Manager and was responsible for all facets of the
operation, which consisted of approximately 300 customer service
representatives in nine locations. WTS provides scheduled and charter
airline travel packages, as well as outsource marketing, customer
service, and reservation services.
Also in January, RCG named William Hodge, CPA, as Chief Financial
Officer of RCG. Mr. Hodge most recently served as the CFO of the
Hampshire Group, Limited (NASDAQ: HAMP) which has annual revenues of
approximately $290 million. Mr. Hodge began his career in 1974 at
Ernst & Young, where he performed audit and audit related services to
a variety of private and public companies, until his departure in
1984. He is a certified public accountant and holds a Bachelor's
Degree in Accounting from Mars Hill College in North Carolina.

Financial & Business Outlook

Given the level and pace of booking activity, RCG expects to post
its first profit in its fourth fiscal quarter ending June 30, 2004.
Moreover, given the current business outlook and the generally
improving economy, the Company expects to record annual revenues in
excess of $200 million for the 2004 calendar year, and expects to be
profitable for the fiscal year ending June 30, 2005.
It is important to note that the leisure travel business follows
what is known as the "North American Travel Curve", described as
follows: January and most of February (except President's Day) are
very low demand months; March and April are strong months due to
college Spring Breaks; demand falls again in May; summer is the high
season, which falls off sharply in September; business slowly
increases in October through December, with peaks around the
Thanksgiving and Christmas holidays. RCG's quarterly financial results
are likely to follow this travel curve.
Commenting on the corporate update, Michael D. Pruitt, RCG's CEO,
stated, "It has been approximately three months since we completed the
acquisition of SunTrips(TM) and Vacation Express(TM). We are now
convinced that the two companies have more value and upside potential
then we initially anticipated. The acquisitions provide our Flightserv
subsidiary with two revered brands having an annual base of business
of approximately $200 million from which we can add horizontal and
vertical acquisitions as well as strategic alliances."
RCG currently has a tax-loss carry-forward of approximately $50
million which could result in significant tax savings over time. The
Company has a management team with a wealth of experience in
successfully identifying, acquiring, building and managing undervalued
service industry businesses. The Company's management is currently
exploring several acquisitions, partnerships, strategic alliances and
other relationships that would add low-risk revenue to RCG and be
additive to its earnings per share.

About RCG Companies Incorporated

RCG Companies Incorporated (http://www.rcgcompanies.com) is
focused on delivering to its shareholders rapidly growing, relatively
low risk revenues, along with increasing earnings per share. The
majority of RCG's revenues are currently derived from its wholly-owned
travel service organization, Flightserv, which delivers leisure and
vacation travel packages under the SunTrips(TM) and Vacation
Express(TM) brands, together making Flightserv one of the largest
leisure travel tour operators in the United States. RCG is also
involved in the technology services sector, through its wholly-owned
software and IT services division, Logisoft Corp., and as an investor
in a home technology services company, Lifestyle Innovations, Inc.,
which is a publicly traded company (OTCBB: LFSI).
Statements in this news release about anticipated or expected
future revenue or growth or expressions of future goals or objectives,
including statements regarding whether current plans to grow and
strengthen the company's existing network will be implemented or
accomplished, are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended. All
forward-looking statements in this release are based upon information
available to the Company on the date of this release.
Any forward-looking statements involve risks and uncertainties,
including the risk that the Company will be unable to grow or
strengthen its network due to a lack of capital or an inability to
identify acquisition candidates and that the Company may not realize
anticipated cost savings or revenue growth opportunities associated
with restructuring certain operational and financial policies,
procedures, and contracts of Vacation Express(TM) and SunTrips.
Additionally, Forward looking statements concerning the performance of
the travel and leisure industry are based on current market conditions
and risks, which may change as the result of certain regulatory,
political, or economic events, a shift in consumer travel preferences,
as well as those risks and uncertainties described in the Company's
filings with the Securities and Exchange Commission, that could cause
actual events or results to differ materially from the events or
results described in the forward-looking statements, whether as a
result of new information, future events or otherwise. Readers are
cautioned not to place undue reliance on these forward-looking
statements.

KEYWORD: NORTH CAROLINA GEORGIA CALIFORNIA
INDUSTRY KEYWORD: TRAVEL TRANSPORTATION AIRLINES MERGERS/ACQ
SOURCE: RCG Companies Incorporated

CONTACT INFORMATION:
RCG Companies Incorporated
Andrew Lauman, 704-366-5054 x 27
adl@rcgcompanies.com
or
The Del Mar Consulting Group, Inc.
Robert B. Prag, 858-794-9500
bprag@delmarconsulting.com

I have to say - You have more ENERGY than the Bunny!

I'll report back from my "field trip" to CYGE later!

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