SOURCE: CapSource Financial Inc.

May 02, 2006 11:54 ET

CapSource Financial, Inc. Announces Acquisition of California-Based Prime Time Equipment Inc.

BOULDER, CO -- (MARKET WIRE) -- May 2, 2006 -- CapSource Financial, Inc. (OTC BB: CPSO) announced today that it has acquired Prime Time Equipment Inc. of Fontana, California. Prime Time is the authorized California dealer for Hyundai Translead trailers as well as offering used equipment. In 2005, Prime Time had total revenues of approximately $25 million.

CapSource's RESALTA subsidiary is the exclusive authorized Hyundai Translead dealer for all of Mexico. In 2005, RESALTA sold approximately $19 million of Hyundai trailers to its clients.

Fred Boethling, President and CEO of CapSource said, "With the acquisition of Prime Time we believe we are the largest dealer of Hyundai trailers in the world. Hyundai is an excellent partner and we look forward to working with them to expand their market share in the Western U.S. and Mexico." In addition, Mr. Boethling noted that, "With Prime Time we now have significant operations on both sides of the U.S.- Mexico border. This is consistent with our strategy to capitalize on the huge increase in trade and truck traffic between the U.S. and Mexico brought about by NAFTA."

CapSource recently announced a $2 million equity investment from Whitebox Advisors, LLC a Minneapolis-based hedge fund. Whitebox currently owns approximately 30% of the outstanding common stock of CapSource.

About CapSource Financial, Inc.

CapSource Financial, Inc. was incorporated in 1996 to take advantage of the North American Free Trade Agreement (NAFTA) and the increased economic activity that NAFTA triggered when the world's largest free trade area was created by linking 406 million people in Mexico, the U.S. and Canada producing more than $11 trillion worth of goods and services. Mexico is now the United States' second largest trading partner with an average of $650 million in goods crossing the border each day. U.S. trade with Mexico has increased nearly 500 percent -- from $48 billion to $239 billion since the passage of NAFTA. The vast majority of this trade moves by truck.

CapSource owns and manages a lease/rental fleet of over-the-road truck trailers and related equipment through its REMEX subsidiary and sells trailers, parts and service through it RESALTA subsidiary, both based in Mexico City. CapSource, through its subsidiary Capsource Equipment Company, Inc., also owns and operates Prime Time Trailers of Fontana, California, the authorized Hyundai Translead trailer dealer for California. CapSource's common stock trades on the electronic bulletin board under the symbol CPSO.

Certain matters discussed within this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although CapSource Financial, Inc. believes the expectation reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from our expectations include financial performance, changes in national economic conditions, economic conditions in Mexico, availability of financing, governmental approvals and other risks detailed from time to time in the company's SEC reports.

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