Robert Pilcowitz: Franklin Capital Group Ltd. (TSX: FMF.UN), which recently completed an initial public offering on the Toronto Stock Exchange, has announced FMF Capital LLC, its operating subsidiary, is nearing conclusion of its regulatory and licensing process and should begin operations under its new name FMF Capital in June.

1. Franklin Mortgage Funding
Announces Completed IPO and
Name Change
Robert Pilcowitz: SOUTHFIELD, Mich., May 10 /PRNewswire-
FirstCall/ — Franklin Capital Group Ltd. (TSX: FMF.UN), which
recently completed an initial public offering on the Toronto Stock
Exchange, has announced FMF Capital LLC, its operating
subsidiary, is nearing conclusion of its regulatory and licensing
process and should begin operations under its new name FMF
Capital in June.
FMF Capital Group Ltd., one of the nation’s leading wholesale
nonprime residential mortgage lenders, is listed on the Toronto
Stock Exchange (TSX) under the symbol FMF.UN. BMO Nesbitt
Burns, Inc., National Bank Financial Inc., TD Securities Inc.,

2. Canaccord Capital Corporation, First Associates Investment Inc.,
and Sprott Securities Inc. were the underwriters.
FMF Capital Group Ltd. acquired approximately a 60 percent
interest in FMF Capital LLC, funded by an offering of income
participating securities [IPS(TM)] totaling Cdn$197 million and
separately issued notes totaling approximately Cdn$22 million.
FMF Capital LLC had an enterprise value of almost US$300 million
on March 24, 2005, the date the shares began trading on the
Toronto Stock Exchange.
“FMF Capital has experienced tremendous growth, with more than
US$2 billion in production in 2004, US$724 million in the fourth
quarter alone,” said Robert Pilcowitz, CEO of FMF Capital LLC.
“With a publicly traded parent company, and an enterprise value of
almost US$300 million, FMF Capital will be better positioned to
sell our mortgage originations and attract superior
personnel.”
“The Company’s success is a testament to the hard work and
dedication of our more than 400 employees,” said Edan King, COO
of FMF Capital. “Our team has been building the infrastructure for
a ‘national brand’ for more than nine years. We will now
aggressively take our outstanding products and services to the
national marketplace under one unified name — FMF Capital,” said
King. Previously, the Company operated under the names Franklin
Mortgage Funding and Franklin Direct.
“FMF Capital’s IPO on the Toronto Stock Exchange is one of only
five cross-border income participating securities IPOs ever
completed,” said Bill Sider, a partner with FMF Capital’s lead law
firm, Michigan-based Jaffe Raitt,
Heuer & Weiss, P.C. “This was an extremely complex cross-border
transaction that we led with our Canadian partner Goodmans LLP,
and a host of other

3. participants, to completion in a little over six months.”
“Ultimately investors were attracted to FMF Capital’s strong and
predictable revenue and cash flow, a compelling strategy for future
growth and a dynamic and committed management team with a
proven track record of success,” said Tom Little, a director in the
financial services group at
Toronto-based BMO Nesbitt Burns. “We were delighted to lead this
successful offering for FMF Capital, the first financial services
company to go public
through a cross-border IPS transaction.”
“Income participating securities” and “IPS” are trademarks of BMO
Nesbitt Burns Corporation Limited. For more information, please
see FMF Capital Group’s prospectus dated
March 16, 2005.
ABOUT FMF Capital Group
Founded in 1996, Southfield, Michigan-based FMF Capital Group
is one of the leading wholesale nonprime residential mortgage
lenders in the United States. FMF Capital originates its nonprime
mortgages though a network of
more than 3,000 independent mortgage brokers in 38 states. The
Company operates regional processing centers in Scottsdale,
Arizona; Overland Park, Kansas; Southfield, Michigan; Nashville,
Tennessee and Virginia Beach, Virginia. FMF Capital is traded on
the Toronto Stock Exchange under FMF.UN.
For more information, please visit http://www.fmfcapital.com

4. FMF Capital Group Safe Harbor
This press release may contain forward-looking statements,
including statements regarding the business and anticipated
financial performance of FMF Capital Group. These forward-
looking statements reflect the Company’s views, at the time such
statements were made, regarding expectations of future events and
operating performance and FMF Capital Group assumes no
obligation to update or revise them to reflect new events or
circumstances.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not or the times at or by which such
performance or results will be achieved.
A number of factors could cause results to differ materially from the
results discussed in the forward-looking statements, including, but
not limited to, the factors discussed under “Risk Factors.” Although
the forward looking statements contained herein are based upon
what FMF Capital believes to be reasonable assumptions, investors
cannot be assured that actual results will be consistent with these
forward-looking statements, and the differences may be material.
SOURCE FMF Capital LLC