Fortress Group, Inc., The
Ticker: FRTG 1760 Reston Pakway, Suite 208
Exchange: NASDAQ-National Market Reston, Virginia 22090
Industry: Construction (703) 709-7700

Type of Shares:Common Shares Filing Date:3/14/96
U.S. Shares:3,000,000 Offer Date:5/16/96
Non-U.S. Shares:0 Filing Range:$10.00 - $12.00
Primary Shares:3,000,000 Offer Price:$9.00
Secondary Shares:0 Gross Spread:$0.63
Offering Amount: $33,000,000 Selling:$0.40
Expenses:$2,500,000 Reallowance:$0.10
Shares Out After:11,464,375

ManagerTierPhone
Furman Selz IncorporatedLead Manager (212) 309-8200
BT Securities CorporationCo-manager (212) 250-5000
Southeast Research Partners, Inc.Co-manager (407) 994-9600

Auditor: Price Waterhouse
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$199.03$41.31$36.87Assets:$133.15
Net Income:$6.06$0.99$0.07Liabilities:$122.93
EPS:$0.46$0.04-$0.01Equity:$10.21

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is a national homebuilding company designing, building and selling single family homes in the metropolitan areas surrounding Las Vegas, Nevada; Austin and San Antonio, Texas; Tuscon, Arizona; Denver and Fort Collins, Colorado. The company is also selling single family homes in the metropolitan areas surrounding Raleigh-Durham, North Carolina. The company offers high-quality, innovative homes, targeting a diverse range of market segments including the first-time, entry-level buyer, move-up buyer and executive/luxury home buyer. The company markets a wide range of single family detached and attached homes ranging in size from 1,000 square feet to 5,500 square feet at prices ranging from $80,000 to $600,000. The company has entered into agreements to acquire, simultaneously with the closing of the Offerings, four established homebuilders operating in the above markets, each of which will become a wholly-owned subsidiary of the company.

Use of Proceeds
The proceeds from the offering will be used to repay outstanding indebtedness of the company's subsidiaries, make certain cash payments to the former stockholders of the Founding Builders in connection with the acquisitions, and the balance for general corporate purposes, which may include acquisitions.

Last updated: 10/28/96

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