Cavalry Investments, a Top-Ten Debt Buyer, Retains Salomon Smith Barney

HAWTHORNE, NY — Cavalry Investments, LLC, one of the nation’s largest acquirers of distressed consumer debt, announced today that it has retained Salomon Smith Barney to explore a broad range of strategic and financial alternatives.

According to Andrew Zaro, Cavalry chief executive officer, Salomon will advise Cavalry in a number of areas relating to the growth and capital structure of the firm. Cavalry enjoyed a record year in 2002, with its portfolio of receivables rising to over $7 billion, up from $3 billion in 2001.

“Salomon will help us explore a range of strategic and financial options that will assist us as we continue to expand and capitalize on strong growth in our core markets,” Zaro said. “Alternatives include further capital-raising activities, as well as helping us to identify strategic opportunities for partnerships, joint ventures and potential business combinations. We’re very happy to have this relationship.”

Cavalry, which Zaro founded in 1991, is one of the remaining large, successful independents in this sector of debt-buying companies, he said. The firm now has more than 400 employees servicing 1.6 million accounts in four offices across the country. Cavalry has operations in Hawthorne, New York; Phoenix, Arizona; Tulsa, Oklahoma; and St. Paul, Minnesota.

About Cavalry Investments, LLC
With over $7 billion of receivables, Cavalry Investments is one of the nation’s largest acquirers of non-performing consumer loans. The firm ranks in the top ten of the country’s largest debt buyers, according to Thompson Financial. Cavalry’s client roster includes some of the nation’s largest banks and consumer finance companies, as well as automotive companies, retailers, utilities, telecom and healthcare companies. The firm offers significant expertise, proven collection strategies and a proprietary credit scoring system that pinpoints “recoverable” loans, as well as a national legal network. Cavalry has offices in Hawthorne, New York, Phoenix, Arizona, Tulsa, Okla. and St. Paul, Minn.