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Brad S

12/13/07 7:14 AM

#6933 RE: stervc #6917

Once again, that merger is no longer a going concern per the 06/20/07 company update:

• Merger Talks With London Based Insurance Company

Heritage Capital Credit Corporation together with a related financial guaranty company First Life Financial Corporation has discontinued merger talks with a London based insurance company to form an insurance holding company in the United States. The non-binding Letter of Intent was announced on December 21, 2006. After a six month due diligence period, it was determined that the merger was not beneficial for the companies.