Avenue Financial Corporation

Avenue Financial Corporation

May 30, 2005 11:40 ET

Avenue Obtains Financing

TORONTO, ONTARIO--(CCNMatthews - May 30, 2005) - Avenue Financial Corporation (TSX VENTURE:AFC) is pleased to announce it has entered into a financing agreement with Avenue Financial L.P. #1 ('AFL'), a third party limited partnership. Under the agreement, AFL will be providing approximately $900,000 in current financing with a further approximately $6,000,000 in deferred financing over a 10 year period. In exchange, AFC has agreed to pay AFL a 3% share of revenue for up to a ten (10) year period. The financing will be used primarily for product marketing and distribution.

New Role for Colin Berrie

Avenue Financial Corporation announces the resignation of Colin Berrie as President. AFC has subsequently entered into an agreement with Mr. Berrie whereby he will act as an independent sales representative to market and promote the Avenue Global Asset Management Inc. ('AGAM') product line-up.

Commented Robin Ross, CEO of AFC, 'I want to thank Colin for his contribution to date as President. Under the new arrangement Colin will focus his efforts on direct product sales. Colin has extensive sales and marketing capability and will leverage his considerable contacts in the securities and mutual fund business to introduce and sell the AGAM offering."

Avenue's Special Share Offering (AGAM) for accredited investors is currently available for sale through qualified Investment Advisors, Counselors and Planners in select jurisdictions within Canada. These distinctive Special Shares offer high net worth Canadian investors and select institutions access to product managed by top-performing global hedge-fund managers on a tax advantaged basis. An investment in AGAM shares allows for tax-free growth and transferability while redemptions are taxed at capital gains rates.

About Avenue Financial Corporation

Avenue Financial Corporation is a TSX Venture listed company which designs, develops, and administers innovative investment products for high net worth investors and institutions. Through its international affiliates Avenue Financial plans to be a global administrator of world-class managed fund products.

The Toronto Venture Exchange ("TSX-V") does not accept responsibility for the adequacy or accuracy of this press release.

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