Transnational Financial Network, Inc. Signs Agreement to Acquire Residential Mortgage Lending Division from Texas Capital Bank,

  
    
  
  
    
      Transnational Financial Network, Inc. (AMEX:TFN), a California-based 
      wholesale and retail Mortgage Banking firm, announced today that it has 
      executed a Definitive Purchase Agreement with Texas Capital Bank, NA. (“Texas 
      Capital”) to acquire the Bank’s 
      residential mortgage lending division (“RML”). 
      Under the terms of the Agreement, TFN will issue up to three million 
      shares of its Common Stock of which 1,291,355 are subject to two 
      earn-out provisions.
    
    
      The earn-out has two provisions. If the revenues of RML during the 
      twelve month period ending September 30, 2007 are greater than 20% of 
      the $17,060,000 revenues generated by RML for the twelve months ended 
      September 30, 2006, then TFN will issue an additional 337,355 shares. If 
      the revenues of RML during the twelve month period ending March 31, 2008 
      are greater than 60% of the revenues of the immediately preceding twelve 
      month period, then TFN will issue an additional 954,000 shares.
    
    
      In addition to its retail mortgage activities, RML operates net branches 
      in several other states, all of which are being acquired by TFN upon TFN 
      becoming licensed in those states. In the interim, the branches will be 
      managed for TFN’s benefit.
    
    
      “RML has been very successful in originating 
      mortgages, building originations to their present level in three years 
      and developing strong sales and broker service programs,” 
      said Joseph Kristul, TFN’s Chief Executive 
      Officer. He added, “RML gives us significant 
      geographic diversification beyond California and Arizona with a deep and 
      solid senior management team. We plan to expand further our ability to 
      originate mortgage loans through the development of RML utilizing this 
      team.”
    
    
      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.
    
    
      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.
    
  
Transnational Financial Network, Inc. (AMEX:TFN), a
California-based wholesale and retail Mortgage Banking firm, announced
today that it has executed a Definitive Purchase Agreement with Texas
Capital Bank, NA. ("Texas Capital") to acquire the Bank's residential
mortgage lending division ("RML"). Under the terms of the Agreement,
TFN will issue up to three million shares of its Common Stock of which
1,291,355 are subject to two earn-out provisions.

   The earn-out has two provisions. If the revenues of RML during the
twelve month period ending September 30, 2007 are greater than 20% of
the $17,060,000 revenues generated by RML for the twelve months ended
September 30, 2006, then TFN will issue an additional 337,355 shares.
If the revenues of RML during the twelve month period ending March 31,
2008 are greater than 60% of the revenues of the immediately preceding
twelve month period, then TFN will issue an additional 954,000 shares.

   In addition to its retail mortgage activities, RML operates net
branches in several other states, all of which are being acquired by
TFN upon TFN becoming licensed in those states. In the interim, the
branches will be managed for TFN's benefit.

   "RML has been very successful in originating mortgages, building
originations to their present level in three years and developing
strong sales and broker service programs," said Joseph Kristul, TFN's
Chief Executive Officer. He added, "RML gives us significant
geographic diversification beyond California and Arizona with a deep
and solid senior management team. We plan to expand further our
ability to originate mortgage loans through the development of RML
utilizing this team."

   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.

   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.