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Opening of New Wholesale Origination Office in the Mid-West Represents First Major Expansion Outside of California - Arizona Region

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 14, 2005--Transnational Financial Network, Inc. (AMEX:TFN), a wholesale and retail mortgage banking company, has reported financial results for its first fiscal quarter, ending July 31st, 2005. Net Income was $266,152, or $0.04 per share, compared to a loss of $342,327 or $0.05 per share, in the same quarter of the prior fiscal year.

Joseph Kristul, Chairman and CEO, commented: "I am pleased to report that we have continued the improvements in our operating results that began last year, culminating in the solid profitability of our recently reported results. I would particularly like to draw attention the following:

-- "On a cash flow basis, we generated $226,000 in cash from income statement-related operations in the quarter, a material improvement from our near break-even level in our last quarter.

-- "Our operating break-even level continues to decline. Whereas a year ago, we needed approximately $42-44 million in monthly wholesale originations to break even on an operating cash flow basis (excluding changes to balance sheet items), this figure is now down to about $33-35 million. Aside from strict cost controls, this improvement is principally from our improved gain on sale margin, discussed at length in our financial filings with the SEC.

-- "We ended the quarter with $4.4 million of cash on hand, or $0.65 per common share outstanding.

-- "In August, we opened a wholesale origination office in the Midwest, and we expect to see mortgages originated out of this office beginning in September. This represents our first major foray into the Midwest and an expansion beyond our traditional California - Arizona region.

"Concurrent with this press release, we have filed our Form 10-QSB with the Securities and Exchange Commission. In this, we discuss in depth our recent operating results, and I urge our investors to read it. It can be found at: http://www.sec.gov."

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.