CFI Mortgage Inc. (fka CFIM)

[Kama]

CFI Mortgage, Inc. Moves Forward With the Acquisition of Lender, Ltd.; Sets Closing Date for October 31, 2001
CLEARWATER, Fla., Oct 16, 2001 (BUSINESS WIRE) -- CFI Mortgage, Inc. (OTCBB:CFIM)announced today that the majority of the due diligence items with respect to the acquisition of Lender Ltd. and Efficiency Experts LLC are now complete and a closing date of October 31,2001 has been scheduled. Both parties are dedicated to the completion of this transaction and envision the enormous benefits that will be derived both short and long term.

Lender Ltd., which has 12 retail mortgage branches and a wholesale division in Southeast Michigan, is experiencing unprecedented loan volume with the recent decrease in interest rates. The strong volume numbers will produce a very timely increase in revenue and net profitability and will provide a more than sufficient cash position to implement the expansion of Lender, Ltd., which is a key ingredient of the acquisition and ultimately the overall success of CFI.

Jim Wickham, President of Lender Ltd., said, "During my tenure in the mortgage industry have seen periods of great prosperity, but never have I seen one with such an abundance of potential customers. The bottom line profit derived from this market coupled with our being part of a public entity will allow us to proceed with the expansion that Steve Williams and I envision for the company. The public arena gives us a greater ability to recruit personnel where key sales people can grow their income exponentially with the stock they can acquire and/or earn by being a part of the Company. This is a tremendous competitive advantage when it comes to recruiting high caliber personnel.

"This recruiting tool coupled with operating efficiencies that we will gain in the CFI collaboration will put both companies in a stronger financial position pressing forward. Now that I have had the opportunity to spend a few weeks with key management at CFI, I can see where collectively we will achieve much more than we would individually."

Steve Williams, Chairman & CEO of CFI said, "Rick Shaffner, Jim Wickham, and myself are committed to finalizing this acquisition. Bringing this to a quick close is quite advantageous to the shareholders and employees of both companies. We feel we have addressed all the major issues and need a few more weeks to finalize the details. I look forward to working with Lender
Ltd. in growing our mortgage business and I feel Lender's proven success will allow the growth of CFI as originally planned. As a holding Company, our continuing goal in the mortgage and technology divisions is to enhance shareholder value and to have the vision to prepare our entities for future growth."

CFI provides mortgage services through a large network of mortgage brokers and financial
professionals. CFI's goal, through acquisition and internal growth, is to be a diversified leader
creating custom software that provides technology-based business solutions for the national
and international marketplace, as well as a leader in the mortgage industry. For more
information on CFI please visit the Company web site at http://www.cfiinc.com or that of
Responsive Research at http://www.responsiveresearch.com where you can subscribe, free of
charge, to its mailing list for press releases, investor updates and market letters, which will
keep you apprised of all late breaking CFI news.

This release may contain forward-looking statements that involve risks and uncertainties. These
statements may differ materially from actual future events or results. Forward-looking
statements are inherently subject to risks and uncertainties, some of which cannot be
predicted or quantified. Future events and actual results could differ materially from those set
forth in, contemplated by, or underlying the forward-looking statements. The risks and
uncertainties to which forward-looking statements are subject include, but are not limited to,
the effect of government regulation, competition and other material risks.

CONTACT: Responsive Research, Inc., Coconut Creek, Fla.
Richard C. Winkel, 954/977-8699
[e-mail]
or
CFI Mortgage, Inc., Clearwater
Marlene Noren, 727/674-1010
[e-mail]

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KEYWORD: FLORIDA
INDUSTRY KEYWORD: BANKING
REAL
ESTATE
MERGERS/ACQ
SOURCE:
CFI
Mortgage,
Inc.