R&R Partners Announces Merger With Brown & Partners and Political Consultant Pete Ernaut

Market Wire, September, 2004

Las Vegas-based R&R Partners, Inc., a full-service advertising, public relations and public affairs firm, today announced a letter of intent to merge with Las Vegas-based Brown & Partners Advertising, Public Relations and Public Affairs and Reno-based political consultant Pete Ernaut.

The three entities, recognized for their strengths in advertising, public relations and public affairs, will employ 242 employees with $226 million in combined capitalized billings as of Jan. 1, 2005, when the merger becomes effective. No lay-offs are expected.

According to Billy Vassiliadis, chief executive officer of R&R Partners, these strategic alliances will benefit clients, expand R&R's management team and mark the beginning of a new growth phase for the 30-year-old company.

"We've been searching for the right opportunity to expand for some time and this merger is ideal for us," said Vassiliadis. "We were already the largest marketing communications agency in the state and one of the largest in the West but joining forces with these accomplished professionals and their teams will give us a competitive advantage to pursue clients that were outside of our reach before."

Mark E. Brown, who was president of Brown & Partners, will become president of R&R Partners, while Ernaut will become president of R&R Partner's Public Affairs division.

"I am thrilled to be part of combining the talents of these three top entities. We are bringing together the best people in the industry which will allow us to enhance the services we provide our clients," Brown said. "This merger will further strengthen R&R Partners' position as one of the nation's top independent advertising, public relations and government affairs firms."

Brown & Partners will continue to operate as a stand-alone company under the name Brown & Partners and its daily operations will be unaffected. Chuck Johnston, formerly managing partner at Brown & Partners, will become president of Brown & Partners. The company will continue serving clients at its new offices, located at 7900 West Sahara Avenue. Ernaut will be based in R&R Partners' Reno office.

"I'm excited to join such a prestigious firm and look forward to expanding R&R Partners' government and public affairs capabilities both regionally and nationally," said Ernaut.

As private companies, financial details of this transaction are not being disclosed.

The three entities currently serve clients in such diverse sectors as travel and tourism, transportation, gaming, health care, utilities and government affairs. Beginning in January, the combined client roster will include: the Las Vegas Convention and Visitors Authority; MGM/Mirage Advertising and Events; Bellagio; Caesars Entertainment; Mandalay Resort Group; Treasure Island; Sierra Pacific Resources; Washoe Medical Center; Las Vegas Monorail; the Regional Transportation Commission; Nevada Mining Association; National Bank of Arizona; Utah Transit Authority; and the Golden Nugget Hotel & Casino.

About R&R Partners

Founded in 1974, R&R Partners is an integrated marketing communications firm that builds brand relationships across all audiences through such services as advertising, public relations and government affairs. A world leader in travel and tourism marketing, R&R is the agency behind some of the top brands in this category, including the well-known, "What Happens Here, Stays Here" campaign for Las Vegas. Ranked by Adweek as one of the top 70 agencies in the U.S., R&R Partners reports annual billings of $180 million and maintains offices in Las Vegas, Phoenix, Salt Lake City, Reno and Washington D.C. R&R also represents clients in the healthcare, utilities, telecommunications and transportation industries. For more information, visit www.rrpartners.com.

About Brown & Partners

Founded in 2000, Brown & Partners is a full-service advertising, public relations, and public affairs agency serving a broad range of clients in such categories as hospitality, gaming, technology, entertainment, telecommunications, education, and real estate. The agency's scope of services includes consulting, strategic planning, advertising, design, government affairs, community outreach, special events, media planning and buying. Brown & Partners reports annual billings of $36 million. For more information, visit www.brown-partners.com.

About Pete Ernaut

Pete Ernaut is a leading political consultant specializing in government affairs, issue advocacy and crisis management. Ernaut is currently managing director of governmental affairs and public policy with the law firm Jones Vargas in Reno, Nevada.

Contact: Betsy Ward R&R Partners (702) 318-4221 bward@rrpartners.com