E.J. Krause Aids SMG In WTC Mexico City Deal

Mexico City, Mexico, August 16, 2005 - Philadelphia-based SMG has signed an agreement to manage its first facility south of the border. Through a unique partnership with E.J. Krause, transitions of the World Trade Center Mexico City will occur this fall. Based in Bethesda, Maryland, E.J. Krause was one of the first, most successful exhibition organizers to venture into Mexico in 1991. Opened in 1995 and now one of the country's busiest venues, the WTC has just been sold by Bancomext to Grupo HIR, a leading Mexican real estate developer.

According to EJK CEO Edward J. Krause III, "as Grupo HIR pursued their acquisition of the facility, they turned to us for recommendations on how to manage it. SMG immediately came to mind." Just as in past relationships with other American show management companies, EJK will assist SMG in establishing their Mexican base of operation. "We can give them the benefit of our experience on the Mexican market and culture as well as dealing with local laws, labor and tax issues," said Paul St. Amour, Director General for E.J. Krause's Mexico City office. "Day-to-day facility management will be solely SMG's role," he added.

With 55 exhibition venues in the United States, Canada and Puerto Rico, SMG has been tracking a number of other international opportunities for some time. Wes Westley, President and CEO of SMG, notes that "we have been approached a number of times by other countries, but we have always wanted to be sure we could service what we sell." With a corporate and a regional structure that mirrors many hotel chains, the company is exploring other opportunities in Latin America, as well as Europe and Asia.

Between them, SMG and E.J. Krause plan to help make access to Mexican markets even more readily available to American organizers. "EJK has been a catalyst for a number of prominent show organizers making forays into Mexico in the past," says Gregg Caren, Vice President of Operations and Business Development for SMG. "Our combined resources and relationships will help eliminate perceived barriers to entry for tradeshows of all sizes and genres," he adds.

About SMG:

Headquartered in Philadelphia, SMG provides facility services to 186 venues, in 41 States, Puerto Rico, Canada and Europe, manages more than ten millions square feet of exhibition space and controls more than 1.46 million entertainment seats worldwide.

SMG manages 55 convention centers such as The Moscone Convention Center in San Francisco, Reliant Center in Houston, Hawaii Convention Center in Honolulu and the Miami Beach Convention Center.

SMG manages 69 arenas such as The Forum in Inglewood, CA; Nationwide Arena, Columbus, OH; Nassau Coliseum, Uniondale NY; Pepsi Arena, Albany, NY; Reliant Arena, Houston, TX; Gwinnett Center, Duluth, GA; The Ford Center, Oklahoma City, OK. For additional information, visit www.smgworld.com

About E.J. Krause de Mexico:

An international business expo organizing company with offices in Mexico, EJK is dedicated to putting together the most relevant events for the telecommunications, manufacturing, environmental, energy, food and drink, construction and concrete industries. E.J. Krause de Mexico is part of the global network known as E.J. Krause & Associates, Inc., one of the largest privately owned exhibition management companies in the United States. With 12 offices worldwide, EJK annually organizes leading events in various sectors for the U.S., Asia, Latin America and Europe. www.ejkrause.com.mx www.ejkrause.com

About Grupo HIR:

HIR is a group in the real estate sector with 44 years of experience, carrying out over 350,000 real estate transactions, including more than 28 million square meters of land that have been commercialized. 8.4% of the inhabitants in Mexico City have a house or possess land that has been commercialized by this group.

GRUPO HIR's priority has always been to help Mexican familes build a legacy for themselves. Now with HIR's incursion in the finance and insurance sectors, they have not only strengthened their position, but also are contributing to developing and fostering business and commercial activities with an Insurance Company with a "Sofol" (International Finance Corporation). Additionally, with its latest acquisition of the International Exhibition and Convention Center, HIR will foster an increased marketing plan and expand into the exhibition and convention business. www.grupohir.com.mx

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