Outsourcing Solutions Inc. Announces Sale of Senior Common Stock

St. Louis, MI — Outsourcing Solutions Inc. (OSI) announced that it completed a sale of $24 million of senior common stock to Gryphon Partners II, L.P. (Gryphon), a private equity firm based in San Francisco, California, and to certain members of its existing private investor group led by Madison Dearborn Capital Partners (MDCP) of Chicago, Illinois.

The net proceeds from the sale were used to repay debt under OSI’s credit agreement, which was incurred in connection with certain recently completed acquisitions. Subsequent to this transaction, Gryphon will own approximately 5% of OSI’s common stock, on a fully diluted basis, and will designate a new director to serve on the company’s board. In addition to its initial investment, Gryphon also has the right, but not the obligation to purchase from the Company up to an aggregate of $20 million of senior common shares on or before April 16, 2002.

Commenting on the sale of the senior common stock, Timothy G. Beffa, President and Chief Executive Officer of OSI, said, “The proceeds from this transaction create substantial flexibility in our capital structure. Combined with the increasing cash flow from the business, these proceeds, as well as the potential future proceeds, will allow OSI to pursue highly strategic and accretive acquisitions like the recently completed purchases of RWC Consulting Group and Coast to Coast Consulting.”

“We believe the collections services and accounts receivable management industry has exceptionally bright prospects,” said Patrick Haiz, Principal of Gryphon. “OSI has distinguished itself as one of the top competitors in this sector and we look forward to helping the company expand its business with add-on acquisitions and continued internal growth initiatives.”

OSI is the nation’s leading provider of strategic receivables management services, enhancing the financial performance of America’s leading companies. With industry-specific strategies and services, OSI delivers results that improve the bottom line through accelerated cash flow, lower operating costs, reduced bad debt expense and improved customer retention. OSI provides outsourcing, collection and portfolio services to a blue chip roster of Fortune 500 clients.

Headquartered in St. Louis, OSI has approximately 7,600 employees in 70 locations across 25 states plus Canada, Mexico and Puerto Rico. More information about OSI can be found by visiting ww.osi.to

Gryphon Investors is a private equity investment firm based in San Francisco with more than $500 million under management. Gryphon seeks to make equity investments of $20 million to $75 million in leading middle-market businesses, in partnership with experienced executives.

Note: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, regarding OSI’s business strategy and future plans and projected results of operations. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by OSI, may cause OSI’s actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking statements. The forward-looking statements contained in this press release speak only as of the date hereof and OSI expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in OSI’s expectations or future events.