Freedom Financial Group Loss Narrows in Second Quarter

SPRINGFIELD, Mo., Aug. 6, 2009 -- Freedom Financial Group, Inc. (OTC:FFGR) (BULLETIN BOARD: FFGR) announced a $91,460 net loss for the quarter ended June 30, 2009 compared to a $292,608 net loss for the quarter ended March 31, 2009. The Company reported a profit of $1.1 million in the second quarter 2008 resulting from the liquidation of its Canadian subsidiary.

President/CEO Jerry Fenstermaker said that he continues to be encouraged by the revenue growth of 58% compared to June 30, 2008 and the reduced operating expenses of 24% compared to the same period in 2008. Customer demand in the market for the financing of used autos in the subprime market weakened. He cautioned that demand remains more uncertain due to rising unemployment and a lack of available credit for auto dealers, car buyers, and finance companies. The lack of bank lines of credit available to auto finance companies may remain significant in 2010 and could restrict revenue growth and threaten the future of large segments of this industry.

Originations in the Midwest subprime auto financing markets, where the Company acquires installment contracts, were consistent with 2008. Delinquencies in the United States were stable at 3.0%, the same as 2008. Net charge offs in the United States ended the quarter at 5.54% compared to 3.07% at June 30, 2008. Also, the loan loss provision was increased $214,000 in the second quarter compared to 2008 and reflects potential risk in the present economy as well as near doubling the size of the portfolio.

FFG is a consumer finance company specializing in the acquisition, collection and servicing of sub-prime loans purchased primarily from independent used car dealers in the Midwest. Fenstermaker explained: "We serve as an alternative source of financing for dealers who sell vehicles to customers who have past credit problems or might not be able to secure financing from traditional sources."

  Freedom Financial Group, Inc.
  3058 East Elm St.
  Springfield, MO. 65802
  417-886-6600 x201