TFN Transnational Financial Network

Transnational Financial Network, Inc. (AMEX:TFN), a California-based wholesale and retail Mortgage Banking firm, announced today that it has reached an agreement to acquire the mortgage banking division of a large regional bank holding company. The transaction will involve the issuance of three million shares of TFN Common Stock. This will make the bank one of the largest shareholder in TFN and almost double the Company's origination volume, based on historical performance. TFN's Board of Directors approved the execution of the Letter of Intent and the acquisition is expected to close by mid September. "This is a very accretive deal for us," said Joseph Kristul, TFN's Chief Executive Officer. He added, "We get immediate and significant geographic diversification and a solid senior management team, highly motivated to grow this business. This represents the first of several mergers or acquisitions we anticipate making as part of our strategy to build a $5 billion origination franchise." Transnational Financial Network, Inc. is a wholesale and retail mortgage banker that originates, funds and sells mortgage loans secured by one to four family residential properties. Through its strong sales and broker service programs, the Company has built a foundation for growth and expansion, principally in the markets of Northern California, Southern California and Arizona. This News Release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.