EquiFin Updates Stockholders and the Investing Public.

SPRING LAKE, N.J. -- EquiFin, Inc. (EQUI.PK) (the "Company") today updated its stockholders and investing public on material developments of the past 7 months. During this period its plans to develop as a small business finance company have been significantly set-back, through the loss, at its termination date in the fourth quarter of 2004, of its principal subsidiary's $20,000,000 portfolio development facility and, from the burden of what the Company believes was a wrongfully filed lawsuit against it during the fourth quarter of 2004 (the "Lawsuit").

Since receiving notice in 2004 that Wells Fargo Foothill would not renew a $20 million credit facility to EquiFin's subsidiary, Equinox Business Credit Corp. ("EBCC"), EquiFin's asset-based lending activities have been discontinued. Although management sought to secure a replacement credit facility that would enable EBCC to continue its operations, it was unable to do so. As a result, EBCC sold its portfolio of asset-based loans in December 2004 to allow for the full, timely repayment of Wells Fargo, and all of EBCC's other creditors.

With the discontinuance of EBCC's operations, EquiFin's ongoing finance activities have been carried, primarily through the operations of its wholly-owned subsidiary, Equinox Factors. Equinox Factors' operations had, during its first years, been funded largely by capital that was provided by participants who purchased an interest in the funded accounts receivable that were purchased by Equinox Factors. With the filing of the Lawsuit, and the risk it presented to capital investors, efforts by EquiFin and Equinox Factors to attempt to raise capital that would enable Equinox Factors to fund its own operations, pay-off the participant capital when due, and thereby allow Equinox Factors to develop its business and realize the full benefit of its operations, were lost. As a result, Equinox Factors has not been able to pursue new funding opportunities and, with its inability to fund the repayment of the participants when their capital came due for payment, has lost, and continues to loose, accounts through liquidation to the participants interests. As a consequence of these adverse conditions, EquiFin's operations during the first half of 2005 have been unprofitable on revenues which are significantly reduced from the prior year's results.

In reaction to these events, management has taken all conceivable steps to reduce operating expenses. The starting point for cost reductions has been focused on management itself. At this writing, senior management has been reduced to 2 part-time people, the Company's President, who currently works on a per diem basis of between 1 and 2 days per week, and its Chief Financial Officer, who currently works between 1 and 2 days per week. The Company has streamlined all other functions and utilizes only 1 other employee, an administrative assistant, who works 2 days each week for the Company. Virtually all other day to day operating expenses have either been completely eliminated, if available for elimination, or dramatically cut from the level of the prior year. These limited operating expenses, when combined with fees required for legal services which are being incurred in relation to the Lawsuit will, nonetheless, when charged against current and expected revenues, result in the Company continuing to operate unprofitably during 2005.

The Company believes the Lawsuit was filed without merit, and with improper motivation. As a consequence, the Company has made a motion to the court that it be dismissed. A decision on this motion is pending. Notwithstanding the outcome of this motion, the Company is reviewing its legal options to determine if it should assert, what it believes are, legal claims against at least four parties who were either instrumental in, or responsible for, what management believes was the wrongful filing of the Lawsuit; possible gross negligence in professional responsibilities that were owed to the Company which caused damages to the Company, and in the denying of insurance coverage for certain costs that have been incurred in defending the Lawsuit. Although there is no assurance of the resulting outcome from these claims if they were to be asserted by the Company, management cannot ignore the rights the Company might have and should assert, if determined to be appropriate, to recoup approximately $300,000 that has been lost to unwarranted legal fees related to the Lawsuit, and possible damages that might be claimed to have resulted to the Company, and its directors, from the Lawsuit and the gross negligence and wrongdoing of certain professionals in relation thereto.

Over the coming weeks and months, those associated with EquiFin will (i) continue to review, and possibly pursue, the Company's legal rights against parties who are determined to have damaged the Company and caused, among other losses, an unwarranted depletion of approximately $300,000 in the Company's cash, (ii) continue to monitor and collect receivables of approximately $1,100,000 that are due to be paid to the Company over the next 17 months from two structured transactions, (iii) continue to review small finance transactions and employ collected capital into such opportunities, if advisable, (iv) continue to review opportunities to benefit all rights holders of the Company either through a merge of EquiFin with a more seasoned operating company which might wish to utilize and benefit from EquiFin's status as a "public company" or another strategic alignment, (v) continue to seek capital, if advisable, for new finance opportunities; and (vi) continue to seek a fair and equitable settlement of the Lawsuit. In addition, the Company continues to hold a "soft asset" with its net loss carry-forward of approximately $5,500,000 which might, given a proper structure, be able to be meaningful to a profitable enterprise. This situation will be monitored on an on-going basis by management, as will the Company's possible retention of independent accountants who would provide audit services to the Company, thereby enabling the Company to timely file its required periodic reports under the Securities Exchange Act.

Although management has continuing hope that an ongoing business can be developed within EquiFin, or a transaction of value can be initiated for EquiFin that might benefit all rights holders, there are challenges facing EquiFin in these regards, and the existence of the Lawsuit currently exacerbates these challenges.

EquiFin, Inc. has not recently filed its required periodic reports (annual and quarterly reports) with the Securities and Exchange Commission in a timely manner and there is no assurance such reporting will be timely undertaken in the future. The information contained in this release is not offered as a full or complete account of all matters or financial results related to the Company but only as a summary of certain material situations and developments involving the Company. Although management proposes to keep stockholders and the investing public apprised of material developments effecting the Company through periodic press releases, there can be no assurance such reports will be given on any consistent time frame.

For more information about EquiFin and its current affairs, all persons are invited to contact Walter Craig, the Company's President by telephone at [phone].