Reznick Group's National Growth Continues With Its Expansion to the Midwest; Merger with Friduss, Lukee, Schiff & Co. Announced Today

FOR IMMEDIATE RELEASE

CONTACT:
Suzanne Gallagher Bouhia
Reznick Group
(301) 280-3634
suzanne.bouhia@reznickgroup.com

BETHESDA, MD (January 24, 2005) – Reznick Group Managing Principal Kenneth E. Baggett today announced that Friduss, Lukee, Schiff & Co. (FLS) and Reznick Group will merge. The closing of the transaction was Friday, January 21, 2005 and the combined firm will operate under the Reznick Group name and include six offices, approximately 900 employees and revenue of $115 million.

A leading national accounting, tax and business advisory firm, Reznick Group announced its strategic plan to become a top 10 firm, with 10 offices, in 10 years in October 2004.

"Our strategic plan calls for significant national growth, leveraging the firm's unique resources for our clients, and recruiting and retaining the best talent in the industry," said Reznick Group Managing Principal Kenneth E. Baggett. "This unsurpassed combination of extraordinary talent is a significant event for our expansion into the Midwest and nationally. FLS and Reznick Group are incredibly strong partners and together we will continue to deliver quality solutions and outstanding service to our clients," Baggett added.

Gaining access to both firms' considerable experience and focus on the real estate industry, the Reznick Group and FLS combined client base will benefit from the breadth and depth of expanded national resources, outstanding talent and leading technical skills.

"For many years Reznick Group has served clients in 50 states including the Midwest. Having an office and professionals physically located in Chicago will allow us to better serve our Midwest client base and expand our reach in that area," Baggett said.

FLS founders Bruce Schiff and Jarvis Friduss will manage the Reznick Group Chicago office and serve as principals in charge effectively immediately. "We are proud of this combination and committed to continuing to deliver exceptional client service to our new and existing clients. This combination will bolster our leadership position in the Midwest. We intend to continue to attract top-notch talent to serve our clients and community," said Co-Principal in Charge Jarvis Friduss.

The integration of FLS into Reznick Group will take place immediately with an orientation and training program for FLS employees to familiarize them with Reznick Group's technology, methodologies and philosophy. A total of 50 employees including nine principals from FLS will remain in Chicago.

The combined firm will maintain the FLS office space located in Chicago, Illinois. The Chicago office will have full-service capabilities providing audit, tax and business advisory services to clients in the Midwest and across the nation.

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About Reznick Group

A national leader in providing accounting, tax and business advisory services, Reznick Group serves clients in a broad spectrum of industries. Headquartered in Bethesda, Maryland; Reznick Group has offices in Atlanta, Georgia; Baltimore, Maryland; Charlotte; North Carolina; Chicago, Illinois; and Sacramento California. The firm has grown from six employees when it was founded in 1977 to approximately 900 today. Reznick Group currently serves clients in many industries including real estate, nonprofit, government, healthcare and emerging and commercial business. Reznick Group uniquely maximizes its resources to provide services to clients nationwide while maintaining a strong regional focus. Reznick Group is a Certified Public Accounting firm and a Professional Corporation.

To learn more about our services, seminars and conferences, or to view our insights on issues that impact your industry, visit www.reznickgroup.com.

About Friduss, Lukee, Schiff & Co.

FLS is a Chicago-based CPA firm, serving a diverse client base in the industries of real estate, manufacturing, construction, wholesaling, retailing, professional services and nonprofit. The firm's services include audit and assurance, tax compliance and consulting, and business and financial advisory. Founded in 1983, FLS is a leading national expert in affordable housing and tax credit matters.

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