TFN Transnational Financial Network

Transnational Financial Network, Inc. (AMEX:TFN), announced that on April 13, 2007, that it and Texas Capital Bank agreed to terminate and settle the contractual arrangements related to the sale of the bank�s mortgage lending division. In connection with the termination, Transnational agreed to pay certain operating losses incurred by the division between September 30, 2007, and March 31, 2007. The operating losses were mutually agreed to be $500,000. Of the $500,000, $160,000 was paid prior to April 13, 2007, with the balance, $340,000, to be paid in three installments pursuant to a note, the last installment to be paid in June 2008. Transnational, the bank and certain individuals originally issued stock in connection with the acquisition agreed to return that stock without consideration and not have distributed stock based on earn-out provisions of the original agreement. Transnational originally issued 1,708,645 shares and of these, 937,776 shares will be immediately canceled and the balance cancelled as installments are made under the note obligation. Joseph Kristul, Chief Executive Officer of Transnational, said, �Given the current volatility in the mortgage industry and the industry�s difficulties, we believed that we should focus upon our existing business. The new operations would have required our personnel to be involved in their integration rather than the challenges that confront us in our established markets. Accordingly, we decided a settlement and termination to be in our best interest.� Transnational Financial Network, Inc. is a wholesale and retail mortgage banker that originates, funds, and sells mortgage loans secured by one to four family residential properties. Through its strong sales and broker service programs, the Company has built a foundation for growth and expansion, principally in the markets of California, Texas, and Arizona. This News Release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.