5:34pm: The Rockets have made the series of transactions official in a press release.
1:24pm: Before training camp opens next week, the Rockets will waive Courtney Fortson and his non-guaranteed contract, according to Jonathan Feigen of the Houston Chronicle (via Twitter). That will reduce the team's roster to 18 players, at which point Houston will fill its last two roster spots by signing Demetri McCamey and Kyle Fogg, says Feigen.
We heard back in June that the Rockets had decided to bring back Fortson for this season, but the 24-year-old's contract ensured that Houston actually had to make two decisions on whether or not to retain him. As Mark Deeks of ShamSports explains, Fortson's deal included a team option for 2012/13, but despite that option being exercised, Fortson's contract was still non-guaranteed, meaning the Rockets won't take a cap hit by releasing him.
McCamey, 23, went undrafted out of Illinois in 2011, despite being ranked as the 53rd-best prospect of the class by ESPN.com's Chad Ford. The 6'3" point guard played in Turkey last season before joining the Bulls' summer league squad this July. Another 6'3" guard, Fogg went undrafted out of Arizona this June. The 22-year-old averaged 13.5 PPG in his senior year with the Wildcats, and played for the Rockets' summer league team in July.
Assuming the deals for McCamey and Fogg are fully non-guaranteed, the Rockets now have 18 contracts on their books that are at least partially guaranteed. Shaun Livingston, Greg Smith, and Scott Machado will all require small buyouts if they don't make the team's final roster and aren't traded.