Risk Management Alternatives Inks Deal With With Cargill Financial Services Corporation to Strengthen Debt Purchasing Line of Business

Risk Management Alternatives (RMA), a leading provider of debt collection, accounts receivable management and call- center services, today announced a strategic agreement with Cargill Financial Services Corporation (CFSC) to strengthen RMA’s existing debt purchasing line of business.

Under terms of the relationship, CFSC will provide financing to fund RMA’s growing debt purchasing portfolio. Financial terms of the agreement were not disclosed.

“We are pleased to be working with a firm that has the global stature and financial muscle of CFSC,” said Dennis Cunningham, president and chief executive officer of RMA. “Debt purchasing is capital-intensive on the front end and requires collection expertise and technology platforms to support execution on the back end. A CFSC/RMA relationship is the ideal combination of resources for the market.”

Debt portfolio purchasing is the buying of a pool of charged-off accounts receivable from credit issuers at a fraction of the face value of the pool. In the past 10 years, credit grantors have increasingly sold charged-off accounts in lieu of continuing internal or third-party collection efforts. A sale of charged-off accounts will generate an immediate return on those assets for the seller. Buyers of portfolios, in turn, attempt to recover a greater return on the initial investment over a longer period of time.

Historically, RMA’s Portfolio Services division has purchased in excess of $5 billion in face value of debt. This agreement will enhance RMA’s ability to continue to compete in this marketplace.

“Both parties in this relationship bring strong, complementary resources and experience, and we look forward to a long-term relationship,” said Greggory Haugen, vice president of CFSC. “RMA has an impressive history in debt recovery, and we are pleased to support their expansion in this area.”

“The growth of our purchase receivables division is a high-priority because of the tremendous market opportunity,” Cunningham added. “Industry reports indicate that the face value of purchased debt is growing 20 percent annually.”

About CFSC
CFSC is a premier financier of credit-intensive portfolio transactions. As one of the largest buyers/financiers of credit-intensive assets in the world, CFSC has established a history of successful relationships with many industry leaders. CFSC’s ability to bring a proven track record, substantial resources and industry expertise has resulted in the development of long-term relationships spanning multiple transactions over time. More information on CFSC can be found at www.aif.cargill.com .

About Risk Management Alternatives, Inc. (RMA)
Formed in 1996, RMA is a leader in the debt collection, accounts receivable management and portfolio services industry. Our services improve clients’ operating performance through improvements in cash flow, operating expenses, customer service and retention. Headquartered in Duluth, Georgia (a suburb of Atlanta), RMA employs more than 4,000 professionals and has operations in the United States, the United Kingdom and India. For more information, visit www.rmainc.net .