CFI Mortgage, Inc. Files Form 10Q; Company Reports Key Strengthening in its Financial Position.

Business Editors

CLEARWATER, Fla.--(BUSINESS WIRE)--Aug. 21, 2000

CFI Mortgage, Inc. (OTCBB:CFIM), a broad, technology-based consumer finance company serving the national and international markets, announced today that it has filed its Form 10Q for the three months ending June 30, 2000. The Company has submitted the filing to the Edgar System for filing with the U. S. Securities and Exchange Commission and notification to the OTC Bulletin Board and will be available to the public today, August 21, 2000.

The Company reported a net loss from operations, before taxes, of $855,450 for the quarter ended June 30, 2000 compared to a net loss before taxes of $150,934 for the quarter ended June 30, 1999. Included in this amount is accrued compensation of officers of $606,693, which represented the compensatory element of stock bonuses to be issued pursuant to employment agreements entered into subsequent to the effective date of the Bankruptcy Plan of Reorganization. Also included was amortization and depreciation expense of $58,622 and professional fees of $70,221, which resulted primarily from the dissolution of its former wholly-owned subsidiary and the final settlements with pre-petition creditors.

Without the compensatory stock bonuses, amortization and depreciation expense, and professional fees, loss from operations was $119,914 which is primarily attributed to the development of Surfside Software Systems Windows(R) technology-based TranWare(TM) applications and the initial staffing of First United MortgageBanc.

For the quarter ended June 30, 2000, the Company realized an extraordinary gain on the forgiveness of debt of $4,301,439 due to the dissolution of the Company's former subsidiary, Direct Mortgage Partners, and the successful negotiations with creditors corresponding pre-petition liabilities.

The net income available to common stockholders for the quarter ended June 30, 2000 is $2,935,529 compared to a net loss of $150,934 for the quarter ended June 30, 1999.

Steve Williams, President and CEO stated, "This quarter marked a significant turning point in the newly-reorganized CFI's brief history." Williams continued "if you want to succeed, the first thing to do is survive. Strategy formulation today is the exercise of building and growing an ongoing viable business, capable of sustaining itself and living for an indefinite period. The process begins with recognition of the limitations created by the corporate history. Imperative to CFI's ongoing success was the strengthening of its financial position."

The following table highlights key transitions in the strengthening of CFI's balance sheet over the last year:

Period Ended:       09/30/99      12/31/99      03/31/00       6/30/00

Assets:          $   210,505   $   178,718   $ 1,612,752   $ 4,710,259
Liabilities:     $10,708,808   $ 7,862,038   $ 8,211,446   $ 3,685,540
Shareholder
 Equity:        -$10,498,303  -$ 7,683,320   -$6,598,694   $ 1,024,719

Williams, in looking to future quarters stated "with the majority of the balance sheet issues behind us, the Company can now concentrate on revenue growth and profitability." Williams added that the revenues generated by the Company in the month of July 2000 alone, surpassed total revenues for the three-month period ended June 30, 2000.

CFI's goal is to introduce a solution into the financial services marketplace, offering it as the most efficient and flexible web-enabled mortgage solution that supports all borrowing channels, consumer direct, retail and wholesale. To find out more about the company, visit www.cfiinc.com.

This release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.