CMG Bancorp Acquires Pacific Guarantee Mortgage Assets

Business Wire, July 2, 2003

Business Editors

SAN RAMON, Calif.--(BUSINESS WIRE)--July 2, 2003

CMG Bancorp (CMG), a California holding corporation, today announced CMG's acquisition of certain assets and branches of Pacific Guarantee Mortgage (PGM) a wholly-owned subsidiary of RBC Mortgage. Terms were not disclosed.

Pacific Guarantee Mortgage originates residential mortgages through a network of over sixty branches primarily doing business in the western and mid-western United States. During the calendar year 2002, PGM West Coast branches originated over 6.2 billion dollars in new mortgage loans.

CMG Chairman and Chief Executive Officer Christopher M. George described the decision to acquire Pacific Guarantee Mortgage saying, "Over the last several years, CMG has been invited to participate as an acquirer of various Net Branch organizations, but either the timing or the target's fit with CMG's unique model wasn't perfect."

"That changed with PGM. The acquisition of the West Coast net branch operations of PGM adds an organization with a history of stability, an excellent reputation, market flexibility and cultural uniformity. Most importantly, PGM shares a common strategic approach to growth, where exceptional and consistent customer service creates market dominance. From our perspective, the CMG/PGM combination is a perfect fit and an ideal complement," George continued.

In discussing the asset acquisition, George said, "In incorporating a vertical enhancement to our marketing efforts, CMG is determined to grow its core mortgage origination business while facilitating a nationwide network of localized mortgage professionals. By adding these distribution centers, we are able to capitalize upon the inherent economies of scale and broaden our financial services footprint."

About CMG

CMG is a privately held company comprised of both mortgage brokerage and mortgage banking subsidiary operating companies. CMG currently does business throughout the State of California and in over thirty other states. CMG currently employs over three hundred people at its principal offices in San Ramon and at additional retail and wholesale offices in Concord, Walnut Creek and San Diego, CA. For more information about CMG, please visit the company's web site at www.cmgmortgage.com.

About PGM

Pacific Guarantee Mortgage Corporation is a mortgage brokerage and lending firm offering residential loan products and services throughout the country. During the calendar year 2002, the West Coast PGM branches originated over 6.2 billion dollars in new mortgage loans. PGM is a subsidiary of RBC Mortgage Company. For more information, please visit at www.pgmusa.com.