LAS VEGAS, Feb. 4, 2004 (PRIMEZONE) -- Vestin Group, Inc. (Nasdaq:VSTN) today announced that it has initiated a cost control program that it believes will provide the company with appropriate resources to meet the requirements of the current business and economic environment.
Michael Shustek, chairman and chief executive officer, said "After an extensive review of the economic environment and business landscape, senior management has concluded that in order to provide the best possible opportunity for success in meeting Vestin's strategic and financial objectives, a change in operating strategy is required. To that end we are embarking, like many companies today, upon a program of rightsizing and strategic cost controls. Accordingly, we are in the process of reducing various costs including payroll, marketing and sales expenses, to a level that is more suitable to our current level of business activity."
Vestin announced that as part of its cost control program it has notified its independent auditors, Ernst & Young LLP, that it was seeking competitive bids for its audit for fiscal year 2004. Vestin said that Ernst & Young, independent of Vestin's decision to seek competitive bids, declined to "stand for re-election", but will complete the company's audit for the year ended December 31, 2003. Vestin has engaged Moore, Stephens, Wurth, Frazer & Torbet, LLP as its independent auditors to succeed Ernst & Young.
The company noted in a submission filed today on Form 8-K with the Securities and Exchange Commission that "E&Y's (Ernst & Young's) reports on the Company's financial statements for the past two years did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles.
"During the 2002 and 2003 fiscal years, and the subsequent interim period through the date hereof, there were no disagreements between the Company and E&Y on any matter of accounting principles or practices, financial statement disclosure or auditing scope and procedures, which if not resolved to E&Y's satisfaction, would have caused E&Y to make reference to the matter in their reports."
About Vestin Group
Vestin Group, Inc. is engaged in asset management, real estate lending, and other financial services. Its subsidiary, Vestin Mortgage, Inc. has facilitated more than $1.5 billion in lending transactions since 1995. Through Vestin Mortgage, Vestin Group manages three funds, Vestin Fund I, LLC, a mortgage fund, Vestin Fund II, LLC, a mortgage fund, and Vestin Fund III, LLC, a mortgage and real estate fund.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Vestin's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in Vestin's Annual Report or Form 10-K for the most recently ended fiscal year.