Alliance Financing Group Inc.

Alliance Financing Group Inc.

November 03, 2005 12:35 ET

Alliance Financing Group Announces Settlement of Litigation; Sale of Shares by Significant Shareholder

TORONTO, ONTARIO--(CCNMatthews - Nov. 3, 2005) - Alliance Financing Group Inc. (the "Corporation") (TSX VENTURE:AFG) announced today that it has settled all outstanding litigation between the Corporation and a former officer/director of the Corporation and companies controlled by him. All claims and counterclaims among the parties have been dismissed without payment from any party to the other.

In conjunction with the settlement, a company controlled by the former officer/director, has sold all of its 2,800,000 common shares in the Corporation to private investors. Robin Sommer of Thornhill, Ontario acquired 1,200,000 common shares in the transaction and now directly or indirectly beneficially owns 2,425,500 common shares representing approximately 20.3% of the outstanding common shares of the Corporation. Jorbren Capital Inc. ("Jorbren") of Toronto, Ontario acquired 1,600,000 common shares in the transaction and held no shares previously. Jorbren now directly or indirectly beneficially owns 1,600,000 common shares representing approximately 13.4% of the outstanding common shares of the Corporation. Both purchasers have advised the Corporation that these shares have been acquired for investment purposes. Robin Sommer and Jorbren Capital Inc. and their respective associates and affiliates may in the future take such actions in respect of their holdings as they deem appropriate in light of the circumstances then existing, including the purchase of additional common shares through open market purchases, participation in private placements or public offerings of the Corporation or privately negotiated transactions or the sale of all or a portion of their holdings in the open market or in privately negotiated transactions to one or more purchasers.

About Alliance Financing Group Inc.

Alliance Financing is a diversified commercial finance institution that specializes in providing branded or white labelled asset based financing solutions, to the SMB (Small to Mid-sized Business) marketplace and to public sector organizations. Alliance Financing works within a multi-underwriter business model, providing a comprehensive suite of financing options available from selected underwriting partners, which include banks, lessors, and other financial institutions. Its financing solutions are delivered through both traditional bricks and mortar channels and various Internet channels. Alliance Financing maintains a "high-tech, human touch" philosophy; utilizing a combination of proprietary technology - such as its private labelled online financing tools, selected ASP technologies, and a dedicated staff of finance professionals to deliver its products and solutions.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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