College Bound Student Alliance Reports Profits.

Business Editors

LAKEWOOD, Colo.--(BUSINESS WIRE)--June 17, 2002

College Bound Student Alliance, Inc., or "CBSA" (OTCBB:GRAD), a provider of college financial aid and preparation resources, today announced its unaudited results for the third quarter of its fiscal year 2002 ended April 30, 2002.

Total revenues for the third quarter of fiscal year 2002 jumped 82% to $3,288,052 when compared to revenues of $1,805,160 for the prior year period. The company reported net income of $241,436, or $0.01 per share, compared to a net loss of ($986,872), or a ($0.04) loss per share, in the third quarter of fiscal year 2001. General and administrative expenses during the quarter include a write-off of $403,998 for accounts that the Company has determined are not collectible. Also included in the quarter was a gain on unused contracts of $456,158. The weighted average number of common shares outstanding for the three months ended April 30, 2002 was 26,070,556, compared to 25,157,940 for the prior year period.

Total revenues for the nine-month period ending April 30, 2002, increased 127% to $8,742,164, when compared to $3,856,426 for the prior year period. The net loss for the nine-month period was only ($714,810), or a ($0.03) loss per share, compared to a net loss of ($4,209,035), or a ($0.17) loss per share, for the nine months ended April 30, 2001. The weighted average number of common shares outstanding for the nine months ended April 30, 2002 was 25,048,364, compared to 24,161,144, for the prior year period.

Commenting on the quarter's results, John Chapman, Chief Financial Officer of CBSA, stated, "Due to the nature of our evolving and growing business, the process of revenue recognition is somewhat complex. Therefore, we have included a comprehensive discussion on our revenue recognition policies in the 10Q."

Douglas Rother, President and Chief Executive Officer of CBSA, remarked, "Previously I predicted that we would achieve profitability this year -- and I am delighted to report that we have. There is no question that the cost cutting measures we have taken, a number of which are described in previous press releases and our 10Q, are working. In orchestrating those cost reductions I was convinced we could streamline our organization in such a way that reducing costs would not affect revenues. Apparently I was correct as we continue to demonstrate strong revenue growth, both in the quarter and for the nine month period, as compared to our previous fiscal year."

Mr. Rother continued, "What the reported numbers do not tell you is the tremendous strides we have made in further developing our marketing strategy, our product offerings and our organizational capabilities. The great results we achieved this quarter are not the end result of our hard work, but the beginning of what we believe will be a continuing pattern of strong revenue growth, and increasing profitability, in future quarters."

College Bound Student Alliance, Inc.

College Bound Student Alliance, Inc. (CBSA) provides services to qualified students to assist in career planning, college course selection, college selection, college entrance testing, and searches for merit awards and financial aid. CBSA markets its services by using direct sales representatives and through scheduled workshops held throughout the United States.

For more information, please visit www.cbsa.com or www.magnumfinancial.com/GRAD.htm.

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.

                 COLLEGE BOUND STUDENT ALLIANCE, INC.
            Condensed Consolidated Statements of Operations
                              (Unaudited)


                         Three Months Ended      Nine Months Ended
                             April 30,               April 30,
                         2002        2001        2002        2001
                     ----------- ----------- ----------- ------------

Revenue:
 Student services     $3,074,090  $1,779,135  $8,181,187   $3,820,530
 Corporate sponsor
  contributions               --      25,575          --       35,345
 Financing Revenue       213,962          --     560,977           --
 Other, net                   --         450          --          551
                     ----------- ----------- ----------- ------------
 Total revenue         3,288,052   1,805,160   8,742,164    3,856,426

Cost of services         528,014     373,001   1,545,492    1,065,740
                     ----------- ----------- ----------- ------------
 Gross profit          2,760,038   1,432,159   7,196,672    2,790,686

Selling, general
 and administrative
  expenses             2,646,623   2,191,407   7,374,199    6,327,104
Depreciation
 and amortization        130,972     145,188     384,987      438,465
                     ----------- ----------- ----------- ------------
 Operating income (loss) (17,557)   (904,436)   (562,514)  (3,974,883)

Gain on unused contracts 456,158          --     456,198           --
Interest expense, net   (197,165)    (82,436)   (608,454)    (246,831)
Other income                  --          --          --       12,679
                     ----------- ----------- ----------- ------------
 Net income (loss)      $241,436   $(986,872)  $(714,810) $(4,209,035)
                     =========== =========== =========== ============
Net income (loss)
 per share
  - Basic and diluted      $0.01      $(0.04)     $(0.03)      $(0.17)
                     =========== =========== =========== ============
Weighted average number
 of common shares outstanding
  - Basic             26,070,556  25,157,940  25,048,364   24,161,144
                     =========== =========== ===========  ===========