Milestone Capital Announces: Completion of Acquisition of Capital Financial Resources LTD, Development of Leasing Transactions, Discontinuation of Discussions with Velos Capital Corp.

Business Editors

FAIRFIELD, N.J.--(BUSINESS WIRE)--Aug. 16, 2002

Milestone Capital, Inc. (OTCBB: MLSP) announced today that it has completed its acquisition of Capital Financial Resources, LTD (CFR) formerly a privately held financial services organization.

William J. Stuckert, formerly CFR's Chief Executive has been named Vice President of Sales for Milestone Capital's EliteAgents Leasing subsidiary (EALS). Mr. Stuckert is focused on developing Vendor Leasing programs as well as pursuing Federal, State, and Local government opportunities, areas in which he specialized at CFR and as a division president of Comdisco.

Since joining EALS, Mr. Stuckert has generated a number of leasing transactions which are currently awaiting funding. Mr. Stuckert said "I am extremely excited about the opportunities which lie ahead for EALS. There is a large market for the type of service we provide, which should provide significant growth for the Company.

Milestone also announced today that it has discontinued discussions to acquire privately held Velos Capital Corp.

Chuck DeMory, Milestone's CEO said, "We are pleased with the progress of our newly formed leasing subsidiary and expect it to deliver meaningful profits in the second half of the year."

About Milestone

Milestone is a diversified financial services company whose objective is to develop a product offering, which will include residential and commercial mortgages, equipment leasing, insurance products, SBA loans, and selected consumer loans.

EliteAgents Mortgage Services, Inc. a wholly owned subsidiary of Milestone (http://www.eliteagents.com), was established in 1999 as a mortgage banker and has spent the last three years and over $6 million developing several sophisticated computer systems to implement its strategic objective. One of these systems, for which a patent has been applied, allows a non-experienced individual to easily qualify a borrower for a mortgage and to evaluate offerings from numerous financial institutions to find the one which best fits the borrower. Once determined, the system allows the originator to obtain the necessary information to initiate the mortgage as well as perform the necessary steps to be eligible to receive a portion of the commission.

Experienced loan officers utilize this system to develop a network of realtors, financial planners, accountants, attorney's, home builders and other professionals to originate mortgages and receive a portion of the commission which this network generates in addition to their own commissions. This system is currently being modified to support leasing transactions for the newly formed subsidiary, EliteAgents Leasing Services, Inc.

EliteAgents Leasing Services, Inc., a wholly owned subsidiary of Milestone, provides leasing structures for a variety of equipment ranging from the small ticket office environment to large transactions for major corporations and governmental units. This includes office, IT, medical, and manufacturing equipment offered via a broad range of flexible leasing programs.

Statements in this press release other than statements of historical face are "forward-looking statements." These statements relate to future events or the Company's future performance. Such statements are subject to certain risks and uncertainties, including fluctuations in interest rates, demand for mortgages, and other risk factors identified from time to time in the Company's filings with the Securities and Exchange Commission that could cause actual results to differ materially from any forward-looking statements. These forward-looking statements represent the Company's judgment as of the date of the release. The Company disclaims, however, any interest or obligations to update these forward-looking statements.