Southland Completes Extension of Agreement With Top Express Engineering Limited.

NEW YORK--(BUSINESS WIRE)--July 13, 1999--

Southland Financial, Inc. (OTC BB Trading Symbol: SINC) announced today that it has in conjunction with its subsidiary operating company in Hong Kong, United Telecom International Inc. (United) finalized an extension of the contract with Top Express Engineering Limited (TEEL), which was originally signed on March 26, 1999.

The extension has been granted to Southland in order that the company may provide an initial U.S. $4M to TEEL for the acquisition of strategic ducting, by close of business, Monday, August 2, 1999.

Earlier this year, on June 30th, Southland's Chairman, David Turik, announced that the company had reached an agreement in principal with Sun Technology Solutions (Sun, North Carolina) whereby Sun will make a U.S. $45M equity investment in Southland.

Mr. Turik said today that Sun Technology Solutions initial investment tranche of U.S. $5.25M in Southland, is due no later than Friday, July 30, 1999 and that Sun will be acquiring 1.5 million shares at U.S. $3.50 each. Each share will carry a warrant for U.S. $6.00 exercisable over 12 months. The investment will follow completion of final due diligence by Sun Technology.

Commenting upon these latest agreements, Mr. Turik said today that he was pleased with the progress made by Southland. "We are moving steadily toward our goal of becoming a "carriers carrier" and in bringing a new level of communications to Hong Kong and the surrounding regions," he said.

Southland Financial, Inc. through its joint venture partners and subsidiary companies aims to be the premier, independent communications network service provider in Southeast Asia and particularly Hong Kong which had long been underpinned by an efficient and cost effective telecommunications sector. It was clear that a continuing, effective telecommunications infrastructure will be critical to Hong Kong in order that it maintain its role as a leading regional financial services and business center.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1996. Forward looking statements concerning, plans, objectives, goals, strategies, future events of performance and underlying assumptions and other statements which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and services demand and acceptance, changes in technology and in economic, political and regulatory conditions and to all of the risks generally associated with a company at Southland's stage of development. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

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