United Financial Mortgage Corp. Reports Positive 2nd Quarter Earnings on Record Revenues

Business Wire, Dec 16, 1998

OAK BROOK, Ill.--(BUSINESS WIRE)--Dec. 15, 1998--United Financial Mortgage Corp. (CHX: "UFM") reported unaudited earnings of $64,026, or $0.02 per share, on record revenues of $2,346,833 for fiscal 1999 2nd quarter ended October 31, 1998. This compares to unaudited earnings of $195,658, or $0.06 per share, on revenues of $2,006,424, for the same fiscal period 1998. For the 6 month period ending October 31, 1998, unaudited earnings were $75,612, or $.02 per share, on record revenues of $5,294,859. This compares to unaudited earnings of $188,824, or $0.06 per share, on revenues of $3,527,667 for the same period last year.

United Financial's earnings in fiscal 1998 and, going forward, fiscal 1999 have been negatively impacted by a quarterly non-cash charge of $78,000. Furthermore, in fiscal year 1998 United Financial's earnings were aided by a tax loss carry forward from prior years. United Financial also completed its acquisition of certain operating assets of Mortgage Service America, Inc (MSA) of Lombard, IL. Terms were not disclosed.

Mr. Joseph Khoshabe, President of United Financial Mortgage Corporation stated "We are extremely pleased, that for the second consecutive quarter, United Financial is reporting record revenues. As we complete the absorption of MSA's operating assets into our operation, we anticipate that we will see a continuation of this positive trend as we move into the second half of fiscal 1999."

United Financial Mortgage Corporation is a national mortgage banker principally engaged in originating retail and wholesale mortgages for single family residences of one to four units. The Company is headquartered in Oak Brook, Illinois and has regional offices in several other states. The Company's web site www.ufmc.com allows consumers to get information on the many different types of mortgage loans offered by the Company, calculate mortgage payments, and apply on-line for a mortgage.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created hereby. Statements in this release that are not strictly historical are "forward looking" statements that are subject to risk and uncertainty. Investors are cautioned that all "forward-looking" statements contained herein may not be reasonable and assumptions could be inaccurate, and should not be construed, considered or assumed as guarantees. The inclusion of such information should not be regarded as a representation or guarantee, by the Company, or any other person, that the objectives and plans, stated herein, will be achieved. Such risks and uncertainties include, but are not limited to, changes in the performance of the financial markets, changes in the demand for and market acceptance of the Company's products, changes in the mortgage lending industry or changes in general economic conditions, including interest rates, the impact of competition, changes in the value of real estate, the ability to maintain and increase sources of funding, and other risks disclosed from time to time in the Company's SEC reports and filings. Unknown factors could cause actual results to differ as well as other risks detailed in the company's reports filed with the Securities and Exchange Commission, including its prospectus, 10K and 10Q filings.

                    United Financial Mortgage Corp.
                     Condensed Statement of Income
                              (Unaudited)
----------------------------------------------------------------------
                        Three         Six         Three         Six
                        Months       Months       Months       Months
                        Ended        Ended        Ended        Ended
                        Oct. 31,     Oct. 31,     Oct. 31,     Oct. 31,
                         1997         1997         1998         1998
Revenues:
 Commissions
  and Fees           $1,703,202   $3,125,347   $2,346,833   $4,596,604
 Interest Income        303,222      402,320      346,793      716,938
 Other Income
  and Expenses                0            0            0      (18,683)
                     ----------   ----------   ----------   ----------
   Total Revenues     2,006,424    3,527,667    2,693,626    5,294,859

Expenses:
 Salaries &
  Commissions          $966,235   $1,923,424   $1,438,385   $2,983,747
 Selling &
  Administrative        588,707      969,004      752,346    1,458,214
 Depreciation            10,923       21,561       13,379       25,559
 Interest Expense       244,901      418,910      392,201      716,938
 Cost and Expense
  of Litigation               0        5,944            0            0
                     ----------   ----------   ----------   ----------
 Total Expenses       1,810,766    3,338,843    2,596,311    5,184,458

Income (loss)
 Before Income Taxes    195,658      188,824       97,315      110,401
Income Tax Provision          0            0       33,289       34,789
Net Income (loss)       195,658      188,824       64,026       75,612
Less Div. Paid on
 Preferred Stock              0            0            0            0
Net Income(loss)
 Applicable to Common
  Shareholders          195,658      188,824       64,026       75,612
                     ----------   ----------   ----------   ----------
                     ----------   ----------   ----------   ----------
Basic Net Income (loss)
 Per Common Share         .0631       0.0609       0.0164        .0201
                     ----------   ----------   ----------   ----------
                     ----------   ----------   ----------   ----------
Diluted Net Income(loss)
 Per Common Share         .0585       0.0565       0.0155        .0189

                     ----------   ----------   ----------   ----------
                     ----------   ----------   ----------   ----------
Shares used in computation of
 Basic Net Income
  Per Share           3,100,029    3,100,029    3,900,029    3,757,807
Shares used in computation of
 Diluted Net Income
  Per Share           3,342,029    3,342,029    4,142,029    3,999,807