Anza Capital Inc. Records First Profitable Quarter in Its 10-QSB Filed March 25, 2002.

Business Editors

COSTA MESA, Calif.--(BUSINESS WIRE)--March 27, 2002

Vincent Rinehart, president & CEO of Anza Capital Inc. "Anza Capital", (OTC BB:ANZA) (Frankfurt Exchange:ANZA.f) (Berlin Exchange:ANZA.BE) announced that Anza Capital recorded their first profitable quarter, ending Jan. 31, 2002, and filed their 10-QSB on March 25, 2002, which management strongly encourages everyone to read.

Rinehart said: "As previously announced, American Residential Funding Inc., a wholly owned subsidiary, had recorded record revenues for the quarter. The profits from this operation exceeded expenses generated by other subsidiaries, as well as the expenses of the parent corporation, Anza Capital."

"The cash flow of the company has markedly improved, with cash on hand ending January 31, 2002 of $633,655 versus $522,405 the year earlier. Short-term debt is manageable, while long-term debt has been paid down, and no obligations are delinquent. It is the opinion of management, baring some significant adverse change in our business or the economy, that Anza Capital should continue to grow and continue to operate profitably," said Rinehart.

Certain portions of Management's Discussion and Analysis are:

Three Months Ended Jan. 31, 2002 Compared With The Three Months Ended Jan. 31, 2001

Revenues

Revenues increased to $6,644,696 for the three months ended Jan. 31, 2002, compared with $2,553,804 for the three months ended Jan. 31, 2001. The growth in revenues is primarily attributable to the expansion and growth of AMRES through the brokering of loans. AMRES accounted for greater than 96% of consolidated revenues for both periods.

AMRES, as did most of the mortgage industry, benefited greatly from the decline in interest rates over the last several months. Typically, as interest rates fall, the refinance market heats up expanding the market of interested borrowers beyond those borrowing for the purchase of their primary residence. AMRES benefited from this market upturn, as they had the capacity in terms of people and infrastructure to accommodate the additional business.

Gross Profit

Commissions are paid to loan agents on funded loans. Commissions increased by $1,295,170 or 58%, for the three months ended Jan. 31, 2002, to $3,527,541 from $2,232,371 for the three months ended Jan. 31, 2001. This increase is primarily related to the increased revenues discussed above. As a percentage of revenue, the cost of revenue decreased by 34%, to 53% compared with 87% for the three months ended Jan. 31, 2002 and the three months ended Jan. 31, 2001, respectively.

This decrease is attributable to the company leveraging its increased revenues as the company earns a higher commission split (compared with the loan agent) once certain revenue targets are reached. Gross profit increased by $3,085,012 or 960% for the three months ended Jan. 31, 2002, to $3,117,155 from $321,433 for the three months ended Jan. 31, 2001.

General and Administrative Expenses

General and administrative expenses totaled $3,027,027 for the three months ended Jan. 31, 2002, compared with $964,225 for the three months ended Jan. 31, 2001. This increase of $2,062,802 can be primarily attributed to the business growth of the operating subsidiaries, namely AMRES, as additional personnel, office space and other administrative costs are required to handle the expansion. Effective in the first quarter of fiscal 2001, the company had implemented significant cost reductions to reduce its administrative expenses at its corporate offices.

Extraordinary Item

On Jan. 17, 2002, American Residential Funding, a subsidiary ("AMRES") purchased a note payable by the company to a related party in the amount of $103,404 and accrued interest totaling $6,291 for consideration of $40,000 of which $25,000 was tendered. In the consolidation the note payable is eliminated and the company recognizes extraordinary income of $69,695 from forgiveness of debt. The company used cash from operations to satisfy these settlements.

Net Income (Loss)

The company's net income for the three months ending Jan. 31, 2002 was $15,768, or $- per share compared with a net loss of $3,034,228, or $(0.14) per share for the three months ended Jan. 31, 2001. The company believes that with its continued growth in revenues and its ability to leverage its fixed costs against those revenues, it will be able to achieve profitability in future quarters.

This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future results of operations and market opportunities that are based on Anza Capital's current expectations, assumptions, estimates and projections about the company and its industry. Investors are cautioned that actual results could differ materially from those anticipated by the forward-looking statements as a result of risks, competition and other factors. These factors, along with other potential risks and uncertainties are discussed in Anza Capital's reports, as well as their subsidiaries, and other documents filed with the Securities and Exchange Commission, especially the amended Form 10-KSB filed March 5, 2002, and recent Quarterly reports, the most recent filed March 25, 2002. Anza Capital assumes no obligation to update the forward-looking information contained in this news release and encourages all potential investors to do their own due diligence and suitability analysis before any investment is made.