Amstar Financial Holdings, Inc. Reinstated as FHA/HUD Originator.

HOUSTON -- Effective on April 17th 2007 Amstar Mortgage Corporation, a subsidiary of Amstar Financial Holdings, Inc. (Pink Sheets:AFLH), was reinstated after a brief suspension by HUD/FHA from further FHA loan originations. HUD had asserted that Amstar Mortgage Corporation's financial statements did not conform to GAAP standards.

On April 17, 2007 senior management of Amstar Financial Holdings, Inc. held discussions with HUD's Washington office Branch Manager and HUD's legal counsel. Following that discussion HUD accepted the Company's financial statements without any changes. HUD representatives appropriately concluded that the financial statements were in compliance as originally presented. Amstar has agreed to pay a late fee of $1,000.

Amstar's FHA origination privileges were reinstated midnight, Wednesday, April 18, 2007. Amstar did nothing unconventional, and the financial statements presented to HUD were in accordance with GAAP standards. Nonetheless, Amstar's management regrets any inconvenience this has caused to our branch managers, loan officers or customers.

About Amstar Financial Holdings:

Amstar's major subsidiary is Amstar Mortgage Corporation, a national mortgage banking and brokering company. Amstar currently employs approximately 700 people and is licensed to operate through branch offices in 31 states and the District of Columbia.

Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such proclamations about the Company's future expectations, including future revenues and earnings, technology effectiveness and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.