SOURCE: Freedom Financial Holdings, Inc.

June 10, 2008 09:35 ET

Freedom Financial Holdings Launches New Initiative

FORT WAYNE, IN--(Marketwire - June 10, 2008) - Freedom Financial Holdings, Inc. (PINKSHEETS: FDMF) CEO Brian Kistler announced today that the company is launching a program targeted at assisting homeowners in, or about to be in, foreclosure. The program is designed to act as an intermediary between the home owner and the mortgage holder.

Kistler commented, "This initiative is very exciting and timely with the rise in home foreclosures. It is estimated that there will be in excess of 2.9 million home foreclosures in 2008 across the United States. With the assistance of Robert Ruckstuhl, a veteran mortgage expert, to head the initiative the company feels that 2009 revenues could top $60 million.

Kistler further added, "Having gone through many market cycles over my career in financial services I have found there is a time to act and that time is now. At no other time has there been the opportunity to place our company in the middle of such a huge opportunity. For the last 2 years I have watched the mortgage industry contract with many of the steadfast companies now gone or soon to be gone. Our model has two approaches: 1) Freedom Financial Mortgage Corp. will continue to work through the current state of the mortgage origination business; and 2) Home Foreclosure Prevention/Consulting to target the unfortunate home owners that have been abandoned by the banks and lenders.

Robert Ruckstuhl commented, "I appreciate the confidence that has been extended to me and commit to doing my best to build a division of Freedom that will make us all proud. Freedom Financial brings the infrastructure and strength to assist the national launch of this opportunity. If our efforts only generate 1% market share this division alone could produce top line yearly revenues exceeding $100 million by 2011. As you can tell we feel the foreclosure issue is only going to get larger over the next several years."

The types of services that will be provided are but not limited to:

--  Negotiate re-writing note terms
--  Negotiate note modification
--  Negotiate a forbearance agreement
--  Negotiate a short payoff
--  Negotiate a transfer of deed in lieu of
--  Negotiate and access to legal counsel

"I am thrilled to have Bobby working with us on this project. The mortgage industry is in a state of disarray, however even though it has been a tough couple of years, we have made it though not only the downturn in the mortgage industry, but now are in a position to really capitalize on and provide a solution to a huge problem in the United States," stated Kistler.

"The mortgage division of FDMF is fully operational and growing through the leadership of Robin Hunt. He has done a fantastic job and I have full confidence in him as we move into the growth stage. I also wish to acknowledge all of the employees and original shareholders that have shown so much confidence in our leadership. It has been extremely difficult, but I am now ready to have some fun," concluded Kistler.

Robert Ruckstuhl over the last 15 years has worked in the mortgage industry as a licensed real estate appraiser, licensed mortgage loan officer, operator of a licensed real estate title agency and as a notary closing agent. As the only person in Ohio who simultaneously performed those four mortgage industry licensed roles, Mr. Ruckstuhl has unique experience and knowledge developed by completing over 6,000 appraisals and reviews for mortgage lenders, banks, brokers and attorneys; managing and originating over 2,500 mortgage loan transactions; supervising over 5,000 mortgage title transactions. Mr. Ruckstuhl has delivered testimony for the U.S. House of Representatives Subcommittee on Banking, the Ohio House of Representatives, the Ohio State Senate and in Federal and Common Pleas Court as an expert witness. Mr. Ruckstuhl holds the following licenses and certifications:

--  Ohio Residential Appraisal License
--  Ohio Mortgage Loan Officer License
--  Florida Mortgage Broker License
--  Residential Mortgage Lending School--RML Certification
--  Certified Manufactured Housing Appraiser
--  Home Inspection Certification

In addition to his Real Estate industry experience, Mr. Ruckstuhl has attended many related schools including the Wharton School of Business. Over the years, Mr. Ruckstuhl has served on many boards including the American Football Association and Options for Family and Youth. Mr. Ruckstuhl is a 1996 inductee into the Minor League Football Hall of Fame, FAA Licensed pilot.

This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning it expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete the acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.

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