Ofek Capital Reports 47% Increase in Revenues; OFCC Featured on MacReport.net and TheStockbroker.com
TORONTO--July 1, 2003--Ofek Capital Corp. (Pink Sheets:OFCC), a fully reporting company, issued their consolidated financial statement for the first six months ending April 30, 2003 and filed it on SEDAR. SEDAR is the System for Electronic Document Analysis and Retrieval for public securities filings at http://www.sedar.comComparative results between the first six months ending April 30, 2002 and the first six months ending April 30, 2003:
| -- | Revenues increased 47% from $680,762 to $1,001,572 |
| -- | Loses from operations before special write down of goodwill decreased 98% to ($1,556) compared to a loss of ($82,231) |
| -- | Cash flow from operations increased 62% from $147,949 to $239,217 |
| -- | Assets decreased from $4,707,146 to $3,071,054 materially as a result of special total write down of goodwill during the first quarter |
| -- | Shareholders' Net Equity decreased from $2,400,639 to $565,620 materially as a result of special total write down of goodwill during the first quarter |
Management elected to write down the entire goodwill value during the first quarter. This step will clean up Ofek's balance sheet and will eliminate costly annual evaluation costs and amortization charges going forward, as well as benefit shareholders hereafter.
AJM Leasing, Ofek's only operating subsidiary, recorded a profit during this period and management expects Ofek's revenues to continue expanding at more than 25% annually and to increase profit and positive cash flow from operations for the foreseeable future.
In addition, CEO Shalom Romm and Ofek were recently featured on the MacReport.Net, http://www.macreport.net, and TheStockbroker.com, http://www.thestockbroker.com, both providers of online business and financial information for the smallcap investor. "Through our presence on these two investor information sites, Ofek continues its proactive effort to increase OFCC's exposure and awareness to the investment community. We have a great growth story to tell to the investment world, and we will continue to make certain that OFCC's successes are noted by investors seeking a compelling investment idea," stated Mr. Romm.
About Ofek Capital, http://www.OfekCapital.com
Ofek Capital is a North American financial services company that operates within the sub-prime lending and financing market. Ofek believes that the sub-prime market is the most lucrative niche in the financial services industry.
Ofek Capital subsidiaries include: AJM Leasing, Mortgage Bankers of North America, Venture Capital, and SecondaryMarkets.
-- Ofek leases used cars through its Ontario subsidiary, AJM
Leasing
-- Mortgage Bankers of North America, a California subsidiary,
anticipates offering traditional mortgage banking services in
24 states
-- Venture Capital Corp. is currently evaluating a number of
equity involvements, funding and investment prospects. Upon
completion of proper due diligence, Ofek will move forward and
expects to enhance their balance sheet thereby benefiting
shareholder equity and value
-- SecondaryMarkets, a California subsidiary, anticipates the
development of a proprietary, patent pending, automated
submission and lending approval software system. It will be
state-of-the-art and capable of generating immediate loan
approval from multiple loan providers
This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, which reflect management's expectations regarding Ofek's future growth, results of operations, performance and business prospects and opportunities. These statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions. A number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements.