Newport International Group Enters Into Agreement with London Investment Company for the Purchase of 5.8 Million Shares of Newport's Restricted Common Stock at $2 Per Share

05 Aug, 2004, 01:00 ET from Newport International Group, Inc.

    PALM DESERT, Calif., Aug. 5 /PRNewswire-FirstCall/ -- Newport
 International Group, Inc. (OTC Bulletin Board:   NWPO) announced today that it
 has signed an agreement with a private investment company for the purchase by
 the investment company of approximately $11,600,000 worth of Newport's
 restricted common shares in exchange for shares of the investment company.
     The investment company is a newly formed London-based company that has
 applied for its shares to be admitted to trading on the London stock exchange
 as an investment trust. The investment company has been established
 specifically to invest in US micro cap companies with long term growth
 potential. The investment company expects its shares to be trading on the
 London Stock Exchange by September 30, 2004.
     Commenting on the agreement Cery Perle, CEO of Newport stated, "We at
 Newport believe that a liquid equity infusion of this magnitude when
 consummated, will enable us to execute on our business plan, seek out
 accretive acquisitions, and help us attempt to reach our goal of profitability
 in 2005.  While the Company will always look to take advantage of
 opportunities that may include financing, this investment puts Newport in a
 position to significantly accelerate our marketing efforts and software
 releases in our attempt to rapidly expand revenues and build our markets."
     The investment company has entered into a "lock-up" agreement with Newport
 International Group pursuant to which it has agreed not to trade the Newport
 International Group shares it will receive as a result of this transaction for
 a period of two years from the closing date.  In full payment for the shares
 of Newport International Group, the investment company will issue to Newport
 International Group USD $11.6 million equivalent of its shares at a price per
 share valued at One Pound Sterling.
     Fifty percent of the investment company's shares will be held in escrow
 for two years following their issuance and in the event the per share market
 price of the Newport International Group common stock at such time is less
 than the per share value of the Newport International Group stock at the time
 of the closing, the investment company shall be entitled to receive out of
 escrow a percentage of the shares equal to the percentage of such decline. The
 remaining shares held in escrow shall be released to Newport International
 Group at such time. The closing of this transaction is subject to certain
 contingencies, including the listing of the investment company shares on the
 London Stock Exchange on or before September 30, 2004.
 
     About Newport International Group, Inc.
     Newport International Group Inc. (OTC Bulletin Board:   NWPO), through its
 subsidiary, GrassRoots Communications, Inc. (GRCI), provides reliable,
 affordable web conferencing and collaboration technology, previously
 affordable only to Fortune 500 companies.  Offering fast, real-time
 collaboration, video, and voice, GRCLive saves time and improves the
 efficiency and effectiveness of business communication.  More information at
 http://www.Newport-International-Group.com and http://www.GRCLive.com.
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995: The statements contained in this news release which are not
 historical facts may be "forward-looking statements" that involve risks and
 uncertainties which could cause actual results to differ materially from those
 currently anticipated. For example, statements that describe GRC's and/or
 Newport International Group's hopes, plans, objectives, goals, intentions, or
 expectations are forward-looking statements. The forward-looking statements
 made herein are only made as of the date of this news release. Numerous
 factors, many of which are beyond either company's control, will affect actual
 results.
 
 

SOURCE Newport International Group, Inc.
    PALM DESERT, Calif., Aug. 5 /PRNewswire-FirstCall/ -- Newport
 International Group, Inc. (OTC Bulletin Board:   NWPO) announced today that it
 has signed an agreement with a private investment company for the purchase by
 the investment company of approximately $11,600,000 worth of Newport's
 restricted common shares in exchange for shares of the investment company.
     The investment company is a newly formed London-based company that has
 applied for its shares to be admitted to trading on the London stock exchange
 as an investment trust. The investment company has been established
 specifically to invest in US micro cap companies with long term growth
 potential. The investment company expects its shares to be trading on the
 London Stock Exchange by September 30, 2004.
     Commenting on the agreement Cery Perle, CEO of Newport stated, "We at
 Newport believe that a liquid equity infusion of this magnitude when
 consummated, will enable us to execute on our business plan, seek out
 accretive acquisitions, and help us attempt to reach our goal of profitability
 in 2005.  While the Company will always look to take advantage of
 opportunities that may include financing, this investment puts Newport in a
 position to significantly accelerate our marketing efforts and software
 releases in our attempt to rapidly expand revenues and build our markets."
     The investment company has entered into a "lock-up" agreement with Newport
 International Group pursuant to which it has agreed not to trade the Newport
 International Group shares it will receive as a result of this transaction for
 a period of two years from the closing date.  In full payment for the shares
 of Newport International Group, the investment company will issue to Newport
 International Group USD $11.6 million equivalent of its shares at a price per
 share valued at One Pound Sterling.
     Fifty percent of the investment company's shares will be held in escrow
 for two years following their issuance and in the event the per share market
 price of the Newport International Group common stock at such time is less
 than the per share value of the Newport International Group stock at the time
 of the closing, the investment company shall be entitled to receive out of
 escrow a percentage of the shares equal to the percentage of such decline. The
 remaining shares held in escrow shall be released to Newport International
 Group at such time. The closing of this transaction is subject to certain
 contingencies, including the listing of the investment company shares on the
 London Stock Exchange on or before September 30, 2004.
 
     About Newport International Group, Inc.
     Newport International Group Inc. (OTC Bulletin Board:   NWPO), through its
 subsidiary, GrassRoots Communications, Inc. (GRCI), provides reliable,
 affordable web conferencing and collaboration technology, previously
 affordable only to Fortune 500 companies.  Offering fast, real-time
 collaboration, video, and voice, GRCLive saves time and improves the
 efficiency and effectiveness of business communication.  More information at
 http://www.Newport-International-Group.com and http://www.GRCLive.com.
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995: The statements contained in this news release which are not
 historical facts may be "forward-looking statements" that involve risks and
 uncertainties which could cause actual results to differ materially from those
 currently anticipated. For example, statements that describe GRC's and/or
 Newport International Group's hopes, plans, objectives, goals, intentions, or
 expectations are forward-looking statements. The forward-looking statements
 made herein are only made as of the date of this news release. Numerous
 factors, many of which are beyond either company's control, will affect actual
 results.
 
 SOURCE  Newport International Group, Inc.