Intrepid with respect to the affairs of InterLink

The Phoenix Group Corporation Announces Preliminary Ruling in Hearing Involving InterLink Home Health Care, Inc
Business Wire, July 21, 2002
Business Editors

DALLAS--(BUSINESS WIRE)--July 21, 2002

The Phoenix Group Corporation (OTC Bulletin Board: PXGPE), a Dallas-based company, today announced that a ruling was handed down late Friday afternoon by Judge Mike Lynn of the United States Bankruptcy Court for the Northern District of Texas located in Ft. Worth, Texas in connection with a dispute with Intrepid of Texas, Inc. involving InterLink Home Health Care, Inc. a wholly-owned subsidiary of Phoenix. Judge Lynn made several findings of fact in a preliminary ruling that is subject to further proceedings at a later date.

In particular, the court ruled that a pledge agreement in connection with a three-year old loan agreement was "facially valid." Phoenix is disputing the authenticity of this document. The effect of this ruling is to vest temporary corporate governance in Intrepid such that it has the right to operate InterLink until such time as further hearings in the matter can take place or the matter can be resolved between the parties. Although Intrepid has the temporary right to operate the company, Judge Lynn has appointed an examiner to monitor the activities of Intrepid while the matter remains within the jurisdiction of his court. All actions of Intrepid with respect to the affairs of InterLink will be subject to the review of the examiner. Specifically, Judge Lynn ruled that no employees of InterLink would be dismissed during this phase of the dispute, and that business would proceed as usual.