Pr_Memo

PRESS RELEASE Tonya Gaines January 23, 2012 Phoenix, Inc. FOR IMMEDIATE RELEASE Phone: 1-800-PHOENIX Website: www.phoenixinc.com Email: tgaines87@email.phoenix.edu PHOENIX CFO RESIGNS ABRUPTLY Tallahassee, FL – Phoenix, Inc. has just announced that Brick Waters has suddenly resigned as CFO. The Securities and Exchange Commission is currently investigating the accounting practices of Phoenix, Inc. With the company being uncertain of the reason behind why Brick Waters’ resignation, Phoenix, Inc. is cooperating with the SEC and will be making any changes necessary to comply with the SEC and its standards. Phoenix, Inc. has named Stephanie Hamilton as the interim CFO. Stephanie Hamilton has been with Phoenix, Inc. for 7 years, as the Vice President of the accounting department. Ms. Hamilton is very knowledgeable of the current account principles and will make sure that all requests and questions of the SEC are made and answered. ### If you have any questions, please contact Tonya Gaines at 1-800-PHOENIX ext. 1065 or at tgaines87@email.phoenix.edu.   MEMORANDUM To: Aileen Smith, Manager, From: Tonya Gaines Date: January 23, 2012 RE: CFO Resignation and SEC Investigation We have just learned that Brick Waters has resigned as Phoenix, Inc.’s CFO. This was an unexpected resignation, but we have already taken steps to dealing with this situation. Stephanie Hamilton has been named as Phoenix, Inc.’s interim CFO. The Securities and Exchange Commission is currently investigating our accounting practices. It seems that we were not reporting our financials properly and there were some discrepancies in our revenue accounts. Since all of these issues are occurring at once, we are being investigated. We have informed our stakeholders of the current situations that have taken place. Since we have just finished our quarterly reporting, we have to make sure that we have our stakeholders’ best interest at heart and that there were no discrepancies in the financial statements reported. We will be holding staff meetings immediately, so that all rumors can be extinguished before they are influenced by the media. We have also set up a hotline that employees can call to get questions answered regarding the current standing on the investigation Phoenix, Inc. is under by the SEC. Since Phoenix, Inc. is a publicly traded company, we have to make sure that we abide by all laws and requests of the SEC. We have to make sure that all employees are abiding by the officials of the SEC and providing them with all necessary documents and reports. With the cooperation of all employees with the SEC and its officials, it will expedite the investigation process and place Phoenix, Inc. back on the rise. We have to make sure that we do not allow the media to have a negative impact on our situation at hand and minimize the negative influences the media will have on how the public perceives Phoenix, Inc. Since we are a publicly traded company, the media has a direct correlation on our stock prices. So we have to make sure that all information provided to the public on point and does not have an room for error. If you have any questions or suggestions regarding this memo, please let me know.