News Release: Transnational Financial Network Reports December Loan Production

Transnational Financial Network, Inc. (TFN - AMEX), a wholesale and retail mortgage banking company released its December loan production figures today.

Joseph Kristul, Chairman and CEO, commented: “Our wholesale business has begun recovering from its trough in late October while our retail production levels remained flat. The increase in wholesale production was helped by the broader geographic presence of this activity while our retail production is generated primarily from the San Francisco Bay area. "As previously stated, we are continuing our efforts to maintain profitability at current loan production levels. One example or our actions was the retirement of approximately $1 million of our 15% subordinated debt over the last 60 days, and we are considering either refinancing the remainder or making further pay downs as this current year progresses. This recent action will save us $150,000 per year, or approximately $0.02 per share until our tax-loss carry-forward is fully utilized.”

Transnational Financial Network, Inc.
Monthly Loan Production
($ million)

Trailing Trailing
3 month 6 month

July.
August.
Sept.
Oct.
Nov.
Dec.
Average Average

Wholesale $89.7 $43.4 $45.9 $44.9 $30.3 $40.2 $38.4 $49.1

Retail* $83.5 $71.3 $59.2 $48.4 $27.8 $26.4 $34.2 $52.8

Total $173.2 $114.7 $105.1 $93.3 $58.1 $66.6 $72.7 $101.8



* Excluding production from Net Branches.

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 Phoenix, 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.

SOURCE Transnational Financial Network, Inc.

CONTACT: Joseph Kristul, CEO of Transnational Financial Network, Inc., +1-415-242-8840
URL: www.transnational.com

CONTACT: Dawn Van Zant, ECON Investor Relations, Inc.,1-866-730-1152 This email address is being protected from spambots. You need JavaScript enabled to view it.

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