National Investment Managers Inc. Operations Unaffected by Lehman Bankruptcy

DUBLIN, Ohio--(BUSINESS WIRE)--National Investment Managers Inc. (OTC BB: NIVM), a nationally-based and regionally-operated retirement plan administration and investment management company, announced that the bankruptcy of Lehman Brothers will have no effect on its business operations. In December, 2007, Lehman participated in a $27 million debt package offering National Investment Managers $12 million in subordinated debt in alliance with Woodside Capital Partners, while Citizens Bank provided $15 million in senior debt. Lehman’s portion was fully funded at close, and there were no expectations or requirements for additional financing from Lehman.

Steve Ross, CEO of National Investment Managers, said, “What occurred at Lehman Brothers in no way affects our debt facility, our acquisition plans or our overall business model. National Investment Managers has adequate cash on hand to fund its current and future operations. We have had a very strong second quarter and half year 2008. NIVM continues to perform extremely well and clearly in line with our strategic, operational and financial plans. And, we look forward to continued positive growth in the future.”

Revenues for the six months ended June 30 2008, increased to a record $20.7 million compared to $17.0 million for the same period in 2007, an increase of 21.9%. The Company’s earnings before interest, taxes, depreciation, amortization, change in derivative financial instruments and stock-based compensation (EBITDA SBC) was $4.9 million for the first six months of 2008, up from $2.5 million in the same period 2007, an improvement of more than $2.4 million, or over 97%. Net income for the quarter ended June 30, 2008, was approximately $834,000.

Since January 1, 2008, NIVM has closed on the acquisitions of California Investment Annuity Sales, Inc. (CIAS) adding $81 million to assets under management, Alaska Pension Services, Ltd. adding approximately $450 million to assets under administration, and Alan N. Kanter & Associates adding a further $400 million to assets under administration.

About National Investment Managers Inc.

National Investment Managers Inc. is a holding company and a consolidator of pension plan administration, investment management and insurance businesses. Its strategy includes a custom-tailored acquisition formula for each acquired business, which allows local and regional entities to retain their autonomy while benefiting from the reach that a national presence offers. In addition, the Company’s approach offers entrepreneurs in these businesses an exit strategy suited to their specific needs. National Investment Managers targets businesses with stable cash flows and high operating margins to ensure successful integration of operations once a sale is concluded. Acquired companies continue to operate under their own brands, usually with minimal staff turnover to ensure that relationships of many years’ standing are not disrupted. At the same time, these formerly small businesses can cross-sell related financial services under the National Investment Managers umbrella and enjoy administrative and other support from around the country.

The member firms of National Investment Managers provide pension administration services, retirement planning, defined benefit services, asset preservation, general insurance and asset management services. Wholly-owned subsidiaries of National Investment Managers are based in Anchorage, AK; Southington, CT; Marina Del Rey, CA; Jacksonville, FL; Orlando, FL; Baltimore, MD; North Attleboro, MA; Cherry Hill, NJ; Haddonfield, NJ; New York City, NY; White Plains, NY; Bend, OR; Portland, OR; Harrisburg, PA; Horsham, PA; Wayne, PA; Providence, RI; Houston, TX; and Seattle, WA. NIVM’s corporate headquarters are located in Dublin, OH.

Note: This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company’s future prospects. They are based on the Company’s current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to raise capital, identify and complete acquisitions, integrate the acquired businesses, improve upon the operations of the acquired business units and generate cash and profits. Further information about these and other relevant risks and uncertainties may be found in the Company’s filings with the Securities and Exchange Commission.