EXHIBIT 99.1

                    RCG COMPANIES SIGNS DEFINITIVE AGREEMENT
                   TO ACQUIRE NEW YORK-BASED RESPONSE STAFFING
   - RESPONSE HAS AVERAGED $4.2 MILLION IN PRE-TAX INCOME OVER THE PAST THREE
                                     YEARS -

CHARLOTTE,  N.C.--May 11, 2004--RCG COMPANIES INCORPORATED (AMEX: RCG) announced
today that it has signed a definitive  agreement to acquire Response  Personnel,
Inc., RPI Professional Alternatives,  Inc., RPI Services, Inc., Response Medical
Staffing of Connecticut, Inc., and Response Medical Staffing of New Jersey, Inc.
(collectively,  "RPI").  The closing of the  transaction is subject to obtaining
third-party  consents,  closing on financing  commitments,  and other  customary
closing conditions.

The  transaction  is targeted to close on or around July 1, 2004.  All  existing
officers, founders and key employees of RPI, who collectively have over 60 years
of  experience in the staffing  business,  will remain at RPI after the closing.
The transaction is expected to be accretive to RCG's earnings.

RPI was founded in 1989 and is based in New York City with additional offices in
Long Island, NY, Jersey City, NJ, Iselin, NJ, and Stamford, CT. The company is a
leading  provider of  professional  staffing  services in the greater  tri-state
area, primarily serving Fortune 1000 companies. As of December 31, 2003, RPI had
approximately  110 full-time  employees,  approximately 80 of which are managers
and recruiting professionals.

Over the past three years,  RPI's annual  revenues  have  averaged more than $42
million with pre-tax income of more than $4.2 million per year.

Under the terms of the agreement,  RCG will acquire 100% of the capital stock of
RPI in  exchange  for $10 million in cash  payable at closing.  RPI will have $2
million of net cash on its balance sheet at closing. The shareholders of RPI may
also receive additional consideration for 4 years from the date of closing based
on an "earn-out" agreement.

Commenting on the  announcement,  Michael D. Pruitt,  CEO of RCG,  stated,  "The
acquisition of RPI is an ideal fit within RCG's strategic plan. RPI will deliver
predictable  revenues and income to RCG,  while having the  wherewithal  to grow
through both organic and acquisitive  means. We plan on leveraging RPI's leading
brand in the New York area and its impressive,  entrepreneurial management team.
Much like our leisure tour and travel unit,  Flightserv,  we believe we can grow
RPI into a national player in the professional staffing industry."

Allen  Gutterman,  CEO  of  RPI,  commented,   "This  transaction  will  mark  a
significant  cross-road  for RPI.  The  founders  and  executives  have the good
fortune to  partially  monetize  our  ownership  in RPI,  yet remain  onboard to
continue  to grow RPI to the next  level.  We look  forward to working  with the
entire RCG team to grow RPI into one the nation's premiere professional staffing
companies."

ABOUT RCG COMPANIES INCORPORATED

RCG Companies  Incorporated  (www.rcgcompanies.com)  is focused on delivering to
its  shareholders  rapidly growing,  relatively  low-risk  revenues,  along with
increasing  earnings  per share.  The majority of RCG's  revenues are  currently
derived from its wholly owned travel service  segment,  Flightserv,  Inc., which
delivers  leisure  and  vacation  travel  packages  under the  SunTrips(TM)  and
Vacation  Express(TM)  brands,  together  making  Flightserv  one of the largest
leisure travel tour operators in the United States.  RCG is also involved in the
technology  services  sector,  through its wholly owned software and information
technology services unit, Logisoft Corp.





                                                                    EXHIBIT 99.1

Statements in this news release about  anticipated or expected future revenue or
growth  or  expressions  of future  goals or  objectives,  including  statements
regarding  whether  current plans to grow and strengthen the company's  existing
network will be  implemented or  accomplished,  are  forward-looking  statements
within the meaning of Section 21E of the  Securities  Exchange  Act of 1934,  as
amended.  All  forward-looking   statements  in  this  release  are  based  upon
information  available  to  the  Company  on  the  date  of  this  release.  Any
forward-looking  statements involve risks and uncertainties,  including the risk
that the Company will be unable to grow or strengthen  its network due to a lack
of capital or an  inability  to  identify  acquisition  candidates  and that the
Company may not realize anticipated cost savings or revenue growth opportunities
associated  with  restructuring  certain  operational  and  financial  policies,
procedure, and contracts of Vacation Express(TM) and SunTrips(TM). Additionally,
forward-looking  statements concerning the performance of the travel and leisure
industry are based on current market  conditions and risks,  which may change as
the result of certain  regulatory,  political,  or economic  events,  a shift in
consumer travel preferences,  as well as those risks and uncertainties described
in the Company's  filings with the  Securities  and Exchange  Commission,  which
could cause  actual  events or results to differ  materially  from the events or
results described in the forward-looking statements,  whether as a result of new
information,  future  events or  otherwise.  Readers are  cautioned not to place
undue reliance on these forward-looking statements.

COMPANY CONTACT:                          INVESTOR CONTACT:

Andrew Lauman                             Robert B. Prag, President
RCG Companies Incorporated                The Del Mar Consulting Group, Inc.
(704) 366-5054 x 27                       (858) 794-9500
adl@rcgcompanies.com                      bprag@delmarconsulting.com