Sanders Morris Harris Group Announces Agreement to Sell its Ownership Interests in...

Sanders Morris Harris Group Announces Agreement to Sell its Ownership
Interests in Salient Partners and its Endowment Fund Affiliates for $95
Million

HOUSTON, Sept. 2 /PRNewswire-FirstCall/ -- Sanders Morris Harris Group
Inc. (Nasdaq: SMHG) today announced that it has reached definitive agreements
with Salient Partners, L.P. and Endowment Advisers, L.P., and its affiliates,
the manager of The Endowment Fund, which provide for Salient and Endowment
Advisers to purchase SMHG's interests in such entities for a total of $95
million.
As announced previously, in May, SMHG and Salient began an appraisal
process relating to Salient's and Endowment Advisers' option to acquire SMHG's
50% interest in Salient Partners and its 23% interest in Endowment Advisers.
The option was granted as part of the Company's 2003 purchase of the interests
for $16 million.
The terms of the agreement provide that Endowment Advisers will pay SMHG
annually the greater of $12 million in priority to other distributions, or 23%
of total distributions, until the Company has received a total of $86 million
plus 6% per annum. SMHG will receive an additional $9 million note for its
50% interest in Salient Partners, payable with interest over a five-year
period.
"The Company is very pleased with this transaction," said Ben T. Morris,
Chief Executive Officer. "The proceeds will help us to further diversify our
earnings sources without the uncertainty inherent in an appraisal. Our
relationship with Salient has been and continues to be excellent. We will
continue to make the Salient investment products available to our clients.
The proposed transaction is an excellent outcome for Sanders Morris Harris
Group, for Salient and for Endowment Advisers."
Further detailed information relating to the sale can be found on the
Current Report on Form 8-K to be filed by the Company.
About Sanders Morris Harris Group
Sanders Morris Harris Group is a financial services company that manages
$11 billion in client assets. It has two primary businesses. Asset/Wealth
Management, the largest, provides highly regarded wealth advisory and asset
management services to individuals and institutions. The other, Capital
Markets, offers investment banking, institutional brokerage, trading, and
research to a variety of institutions and middle market companies. Its
corporate philosophy of investment in common aligns its interests with those
of its clients. Sanders Morris Harris has over 600 employees in 21 states.
Additional information is available at http://www.smhgroup.com.
In addition to the historical information, this press release contains
certain forward-looking statements under federal securities laws, including
statements regarding Sanders Morris Harris Group's expected future business
prospects, revenue and income. These forward-looking statements are based upon
current expectations and involve certain risks and uncertainties that could
cause actual results to differ materially from any such statement. These risks
and uncertainties, many of which are beyond the Company's control, include,
but are not limited to (1) trading volume in the securities markets; (2)
volatility of the securities markets and interest rates; (3) changes in
regulatory requirements that could affect the demand for the Company's
services or the cost of doing business; (4) general economic conditions, both
domestic and foreign, especially in the regions where the Company does
business; (5) changes in the rate of inflation and related impact on
securities markets; (6) competition from existing financial institutions and
other new participants in the securities markets; (7) legal developments
affecting the litigation experience of the securities industry; (8) successful
implementation of technology solutions; (9) changes in valuations of the
Company's trading and warrant portfolios resulting from mark-to-market
adjustments; (10) dependence on key personnel; (11) demand for the Company's
services; and (12) litigation and securities law liabilities. The Company does
not undertake any obligation to publicly update or revise any forward-looking
statements.
SOURCE Sanders Morris Harris Group Inc.

Rick Berry, Chief Financial Officer of Sanders Morris Harris Group Inc.,
+1-713-993-4614