Case Financial, Inc. Announces Third Quarter and Nine-Month Results; Company Reports Largest Quarter of Fundings in Its Four+ Year History.

Business Editors

SHERMAN OAKS, Calif.--(BUSINESS WIRE)--Aug. 18, 2003

$2.1 Million in Underwriting Commitments on

New L.E.G.s(TM) Program Business

Case Financial, Inc. (OTCBB:CSEF) announced financial results for the third quarter and nine months ended June 30, 2003.

For the quarter, the Company reported revenues of $92,753, a loss from operations of ($610,142) and a net loss of ($565,820), or ($0.04) per share. For the three-month period ended June 30, 2002, the Company reported revenues of $222,259, a loss from operations of ($947,935) and a net loss of ($1,046,057), or ($0.12) per share.

The Company reported revenues for the first nine months of 2003 were $372,381, a loss from operations of ($1,695,363) and a net loss of ($1,801,041), or ($0.12) per share, as compared with revenues of $693,230, a loss from operations of ($1,133,116) and a net loss of ($1,735,800), or ($0.34) per share, for the nine-month period ended June 30, 2002.

Eric A. Alden, Co-Chairman and CEO, said, "The initial response to our new L.E.G.s(TM) loan and guaranty program has exceeded our expectations. Since we launched the program at the end of March, we have generated nearly $3 million in funding requests, $2.1 million for which we gave underwriting approval, $1.3 million of which funded this quarter. These figures are nearly double our biggest previous quarter funding. In addition, we go into our fourth quarter with our biggest backlog of funding requests.

"As we continue to build our portfolio of investments in contracts toward our break-even level of $4.0 million (net of third party investments), and the average maturity of the portfolio extends beyond nine months, we expect case resolutions will become more regular and therefore we expect our reported revenue will begin reflecting some consistency. It is important to remember," Alden continued, "that revenue the prior year included a full investment operating cycle on a substantially larger and far more mature portfolio base, and that portfolio of investments in contracts was not included in the merger. We have built our current portfolio from scratch beginning only with the capital we received in the merger a little over a year ago.

"We continue to focus very carefully on containing overhead costs and are prudently balancing this with our infrastructure capabilities to enable us to scale efficiently as the number of borrowers and loan requests increase," Alden concluded.

Founded in 1998, Case Financial, Inc. (a licensed California Finance Lender) is one of California's leading pre-settlement litigation funding companies, providing non-recourse financing to law firms. The Company makes investments in personal injury cases and other types of contingency litigation through non-recourse loans and payment assumption guarantees basing its funding decision and the pricing of its fees on an underwriting risk analysis and estimate of settlement value and timing. The company's advance, loans and guaranties are non-recourse collateralized by the proceeds of each legal settlement and are repaid only when a case is settled or favorably adjudicated in court.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this news release that are not historical facts are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. The forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors. These factors include, without limitation, the Company's lack of profitability, the Company's need for financing, the Company's relatively brief operating history, the uncertainty of litigation outcomes, the length of the Company's collection cycle, the Company's ability to collect upon the judgment recovery, the success of the Company's new funding program, and future legislation including tort reform that may potentially affect the Company's business. For a detailed discussion of some of the ongoing risks and uncertainties of the Company's business, see the Company's annual and quarterly filings on Forms 10-KSB and 10-QSB with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

                         FINANCIAL HIGHLIGHTS

                                           Three Months Ended June 30,
                                                2002           2003

Revenues                                       222,259         92,753
Net (Loss) from Operations                    (947,935)      (610,142)
Net (Loss)                                  (1,046,057)      (565,820)
(Loss) Per Share - Basic & Diluted              $(0.12)        $(0.04)
Weighted Average Shares Outstanding          8,396,549     15,561,108

                                            Nine Months Ended June 30,
                                                2002           2003

Revenues                                       693,320        372,381
Net (Loss) from Operations                  (1,133,116)    (1,165,363)
Net (Loss)                                  (1,735,800)    (1,801,041)
(Loss) Per Share - Basic & Diluted              $(0.34)        ($0.12)
Weighted Average Shares Outstanding          5,094,546     15,561,108