Transnational Financial Network Announces Notice of Non-Compliance With AMEX Listing Standards; Anticipates Satisfactory Resolu

Transnational Financial Network, Inc. (AMEX:TFN), a
wholesale and retail mortgage banking firm, announced today that on
July 31, 2006, it received a letter from the American Stock Exchange
indicating that the Company fails to comply with Section 1003(a)(i) of
the Company Guide with shareholders' equity of less than $2,000,000
and losses from continuing operations and/or net losses in two out of
its three most recent fiscal years.
   Transnational has previously announced that it has entered into an
agreement to sell 3,000,000 shares of Common Stock for $0.70 per share
to Pegasus Funds. While this transaction was anticipated to close in
July, closing is now anticipated to occur in August.
   "We have applied to list the shares on the American Stock Exchange
to be purchased by Pegasus Funds," said Joseph Kristul,
Transnational's Chief Executive Officer, "and anticipate closing on
the investment within ten days of the application's approval. With the
sale of these shares we are confident that our listing on the exchange
will continue."
   By August 30, 2006, the Company anticipates, pursuant to the
exchange's rules, submitting a plan to the exchange to assure
continued compliance with the exchange's listing standards. While the
Company believes that its current financing efforts shall resolve any
concern about the Company's continued listing on the exchange, there
can be no assurance that the Company's continued listing will be
achieved.

   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.