Loanfund's strategic focus is mortgage banking and collateralized lending

Loanfund Exchange is a firm in its belief that the mortgage banking, business financing, and collateralized lending industry provides outstanding opportunities. Underlying this belief is the fact that homeownership, home financing and collateralized lending are fundamental to the growth of this economy. Our objective is to close $90-$100 million loans per month by 2006. We intend to raise additional capital of $100 million from investors to expand our Warehouse lines to enable us to fund more of our pipeline deals, and offer a broad spectrum of proprietary products.

CEO Statement

"I am very gratified by Loanfund Exchange's strong performance this year. Low interest rates provided an ideal climate in all areas of our business including mortgage banking, business financing and collateralized lending. This is leading to record applications, record originations and a 'record pipeline with which to begin 2006. At the same time, our increased emphasis on commercial banking continued to pay handsome dividends as core deposits increased 6% over the second quarter and 37% over the fourth quarter a year ago. Our mortgage and business banking businesses are counter-cyclical and therefore complementary, allowing Loanfund Exchange to do well in a variety of interest rate environments." ...Dean Mensah, President & CEO.

The U.S. residential mortgage is very large, with a record of $7.5 trillion loan fundings in 2005 fiscal year and $12.5 trillion in total mortgage debt outstanding. As the U.S. population continues to grow, and as new products and technology make home and collateralized loans more affordable to Americans, total mortgage debt is expected to grow at a faster pace than the Gross Domestic product. In short, the mortgage banking, business financing,and collateralized lending industry is, and will remain, a vital part of theU.S. economy in terms of both size and social significance. Ourcore product will always be in demand.

As a mortgage and collateralized lender, we provide a critical link between home buyers who need capital and investors who will provide the capital. The crucial link has two elements: loan origination and secondary marketing. By originating a loan, we provide the distribution and processingchannel, whichgives the borrower a point of entry into the capital markets.After we originate the loan we portfolio them and then sell them to the secondary markets, and we act as interface between the borrower and theinvestor. These two elements of our core business respond counter-cyclically from earnings perspective, naturally and mutually mitigating the impact ofinterest rate on overall earnings. The mortgage and collateralized lending industry has experienced significant consolidation throughout the 1990s, yet remains fragmented. Over these few months, our core business has grown steadily about 8-10% . We are well positioned to compete effectively, since the founders and executive officers enjoy over 35 years of mortgage and collateralized lending experience, operational expertise and focus, and are not burdened with any distractions.

Dean Mensah, President & CEO