United Financial Mortgage Corporation Reports Record Quarterly Revenues

Business Wire, Sept 14, 1998

OAK BROOK, Ill.--(BUSINESS WIRE)--Sept. 14, 1998--United Financial Mortgage Corporation (CHX: "UFM") reported unaudited earnings of $0.003 per share, or $10,094, on record revenues of $2,600,620 for fiscal 1999 1st quarter ended July 31, 1998. This compares to unaudited losses of $(0.002) per share, or $(6,843) on revenues of $1,521,243, for the same fiscal period 1998. Shareholders' equity increased to $6,536,403, or $1.68 per share, versus $2,382,895, or $.77 per share, for the 1st quarter 1998. Total shares outstanding are 3,900,029 and 3,100,029 respectively.

United Financial's 1st quarter earnings were partially impacted by the initial additional expenses associated with the requirements of a public corporation. The Company anticipates that the benefits, associated with a public offering, should reduce the cost of capital going forward.

Mr. Joseph Khoshabe, President of United Financial Mortgage Corporation stated "We are extremely pleased with our revenues in the first quarter. Moving forward, we will continue to use the benefits from our offering to reduce our capital costs."

United Financial announced on August 31, 1998 that it had received an executed Letter of Intent from Mortgage Service America, Inc. (MSA), of Lombard, IL, accepting United Financial's offer to acquire all common and preferred stock of MSA. United Financial anticipates consummating the acquisition on or before October 31, 1998.

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. ...more

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.

(financial statements to follow)

                 United Financial Mortgage Corporation
                       Balance Sheet (Unaudited)

                            Three Months Ended     Three Months Ended
                               July 31, 1997          July 31, 1998
  ASSETS
Current Assets:
  Cash                           $   2,105,631          $   4,466,439
  Loans Held for Sale               13,570,784             20,027,262
  Mortgage Loan Investment             505,860              1,389,909
  Accounts Receivable                   94,894                130,242
  Due from Officers
   and Employees                       122,496                 86,834
  Deferred Tax Asset                    45,763                  4,169
  US Savings Bond                        2,000                  2,000
  Notes Receivable                     102,450                216,000
  Prepaid Expense                            0                 77,408
                                 -------------         --------------
    Total Current Assets            16,549,878             26,399,813

Net Furniture, Fixtures
 & Equipment                           142,448                204,698
Total Other Assets                     517,495                291,342
                                 -------------          -------------
    TOTAL ASSETS                    17,209,821             26,895,853

 LIABILITIES & SHAREHOLDERS EQUITY
Current Liabilities
  Accounts Payable               $     255,001          $     191,699
  Deferred Income                            0                      0
  Accrued Expenses                     139,157                174,920
  Taxes Payable                          1,019                      0
  Deferred Income Taxes                      0                      0
  Escrow Payable                        49,519                  3,377
  Notes Payable - Current           13,832,485             20,242,662
                                 -------------          -------------
    Total Current Liabilities       14,277,181             20,612,658
Non-Current Notes Payable              334,734                 23,064
                                 -------------          -------------
  TOTAL LIABILITIES                 14,611,555             20,635,722

Stockholders' Equity
  Common Shares, 20,000,000
  Authorized, No Par Value,
  Shares Issued and Outstanding;
  3,100,029 at 7/31/97 and
  3,900,029 at 7/31/98               2,382,895              6,536,403

Preferred Shares, 5,000,000 authorized,
  No Par Value, 213 Series A Redeemable
  Shares Issued and Outstanding at
  7/31/97 and 63 Issued and
   Outstanding at 7/31/98            1,065,000                315,000

Retained Earnings                     (849,629)              (519,272)
                                 -------------          -------------

   TOTAL STOCKHOLDERS' EQUITY        2,598,266              6,260,131
                                 -------------          -------------

TOTAL LIABILITIES & STOCKHOLDERS'
 EQUITY                           $ 17,209,821           $ 26,895,853
                                 -------------          -------------


                 United Financial Mortgage Corporation
               Condensed Statement of Income (Unaudited)

                            Three Months Ended     Three Months Ended
                               July 31, 1997          July 31, 1998

Revenues:
    Commissions and Fees         $   1,422,145          $   2,249,771
    Interest Income                     99,098                369,532
    Other Income and Expenses                0                (18,683)
                                 -------------          -------------
             Total Revenues          1,521,243              2,600,620

Expenses
    Salaries and Commissions           957,189              1,546,801
    Selling and Administrative         380,297                642,364
    Depreciation                        10,638                 12,180
    Interest Expense                   174,009                324,737
    Cost and Expense of
     Litigation                          5,944                 62,944
                                 -------------          -------------
         Total Expenses              1,528,077              2,589,026

Income (Loss) Before Income Taxes       (6,843)                11,594
Income Tax Provision                         0                  1,500
Net Income (Loss)                       (6,843)                10,094
Less Dividends Paid on
 Preferred Stock                             0                      0
Net Income (Loss) Applicable
 to Common Stockholders                 (6,843)                10,094
                                 -------------          -------------

Basic Net Income (Loss)
 per Common Share                       (0.002)                 0.003
Diluted Net Income (Loss)
 per Common Share                       (0.002)                 0.003

Shares Used in computation of
 Basic Net Income per Share          3,100,029              3,606,696

Shares Used in computation of
 Diluted Net Income per Share        3,100,029              3,848,696