Collaborative Financial Network Group Letter to Shareholders.

Business Editors

CENTURY CITY, Calif.--(BUSINESS WIRE)--Aug. 22, 2001

Collaborative Financial Network Group Inc. (OTCBB:CFNF), a financial portal providing services through its ASP (Application Service Provider) and its "white label" model to customers, provides a review of its business plan and strategy.

Business Divisions

Online Trading Solutions

Trade-Fast Inc., a subsidiary of the company providing online trading solutions, uses a sophisticated, Web-based and user-friendly interface providing direct and immediate access to all U.S. Equity markets. It is geared to ease executions without third party involvement with maximum security and speed.

This solution, with its proprietary, licensed software and communications technology, uses millisecond speed to accept bids or offers at the same price as the marketmaker, as well as to show a bid or offer price. This program is primarily geared to the highly active professional trader.

CFNF through Trade-Fast has established offices in the United States executing approximately 3,500 trades daily, and is aggressively working to expand its offices and partnerships into Asia and other parts of the world.

The company's other online trading application, IMIweb, a system that allows access to most major U.S. and European stock exchanges and provides real-time quotes, market news and ultra-fast executions and international order routing, is exclusively licensed from IMI Bank S.p.A of Milano, Italy.

Banking Solutions

This online interface is logical, intuitive and user friendly. It enables institutions to offer such online banking services as account balances, available credit, fund transfers, transaction summaries, and online statements and check images. The company has signed a Letter of Intent to license a proprietary Internet banking software from Metanology Inc., whose team of software developers represents some of the pioneers in the online banking industry.

Mortgage Brokerage Solutions

Westcor Mortgage, a subsidiary of the company, offers both traditional, "brick and mortar," as well as online mortgage brokerage services. This continues to be a growth product and services segment and the company anticipates further expansion in the coming fiscal year.

Insurance Solutions

Through the acquisition the eZnowinsurance.com portal, completed last year, the company plans to offer competitively priced auto, health, life and other mainstream insurance products online.

Strategy

The company is focused on becoming a complete Financial Services Provider (FSP), by building a secure, always-available user-friendly infrastructure utilizing only state of the art hardware and software. This allows the company to be a "single-source" provider and aggregator of financial products and services for institutions and their clients.

This will enable any customer, with only a browser, to access a secure, reliable environment to meet the increased demands of the constantly evolving global financial marketplace. This capability will provide both small and medium sized financial institutions with a reduced "per-transaction" cost turnkey solution and access to CFNFs expertise.

The key points of the FSP strategy are:

-- Online banking and trading applications

-- Real-time financial planning and wealth management

-- CRM for institutions customer support and management

-- Integration for multiple accounts

-- Service Insurance and lending products online

-- Cost effective opportunities for small to mid-sized businesses

"Drawing on the company's newly named management team we are adding over 20 years of IT management expertise. This in combination with a world class advisory board gives us a solid platform to build. The value of this is difficult to put into dollar terms, but it is the basis for the infrastructure of our company and will serve to be the springboard from which we will continue to grow," stated company president and chief executive officer Paul D. Lemmon.

Forward-looking statements and comments in this news release are made pursuant to safe harbor provisions of the Securities Exchange Act of 1934. Such statements relating to, among other things, the prospects for the company to complete the transaction and enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These risks may be further discussed in periodic reports and registration statements to be filed by the company from time to time with the Securities and Exchange Commission in the future.