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LitFunding Corp. Announces Potential Receivables Of $1+ Million


LAS VEGAS -- (Business Wire) -- March 15, 2005


LITFUNDING Corp. (OTCBB: LFDG) announced today that it

had exceeded its initial goal of $1,000,000 in potential receivables

by March 31. Its actual potential receivable figure as of March 8 was

$1,009,125. In addition, the Company also announced that it had

received $211,250 in principal and fee payments resulting from its

initial advances. For the purposes of this press release, the term

potential receivables describes those advances made to attorney's and

the corresponding portion of fees inherent in those advances that are

not yet recognizable under generally accepted accounting principles

until the underlying cases are settled.

¶ Since September 2004, the Company has advanced 41 fundings

totaling $862,500, divided among three, separate, Limited Liability

Corporations (LLC), and its wholly-owned subsidiary, LitFunding USA.

The Company has formed two additional LLCs and expects to process

approximately $200,000 in advances to attorney's from them in the near

future. In all, the company is currently evaluating a total of $3

million in requested advances.

¶ "The Company's growth to date, has exceeded management's

expectations," said the company's Chief Executive Officer, Morton

Reed, PhD. "From what we are seeing, the market for our product

appears to be growing robustly. Management is confident in the

Company's ability to continue to grow with the healthy demand."

¶ "There is no guarantee that the Company will actually realize the

potential receivables described herein. The potential receivables are

management's estimate of the amount that could potentially be realized

from the Company's litigation advances. However, actually collecting

the anticipated level of receivables will be subject to several

different factors, some of which are outside of management's control,

including, but not limited to, the outcome of any particular matter

and fees actually collected."



¶ About LitFunding Corporation



¶ LFC, through its wholly owned subsidiary LitFunding USA (the

company), remains one of the nation's largest public companies

specializing in the funding of litigation primarily through

plaintiffs' attorneys. The company is in the litigation funding

business making advances to plaintiffs' attorneys primarily in the

areas of personal injury. A fee is earned when the lawsuits so funded

are settled or otherwise concluded by a court ruling. At that time,

both the funds advanced and the fee contractually agreed to are repaid

to the company.

¶ This press release does not constitute an offer of any securities

for sale.



¶ Except for the historical information presented herein, the

matters set forth in this press release are forward-looking statements

within the meaning of the "safe harbor" provision of the Private

Securities Litigation Reform Act of 1995, or by the Securities and

Exchange Commission in its rules, regulations and releases. These

forward-looking statements are subject to risks and uncertainties that

may cause actual results to differ materially. These risks include the

ability of LFC to reach definitive agreements with respect to and

close the proposed financing discussed in this release as well as

activities, events or developments that the company expects, believes

or anticipates will or may occur in the future. Such statements are

subject to a number of assumptions, risks and uncertainties. Readers

are cautioned that such statements are not guarantees of future

performance and that actual result or developments may differ

materially from those set forth in the forward-looking statements. In

addition, other risks are detailed in the company's periodic reports.

These forward-looking statements speak only as of the date hereof. The

Company disclaims any intent or obligation to update these

forward-looking statements.
Contacts:

LitFunding Corp., Las Vegas

Azra Bailey, 702-317-1610