Morry F. Rubin, CEO stated that, "We have made investments to capitalizeon the growth opportunity in the U.S. factoring industry. While ramping upour organic growth initiatives we are also exploring acquisition opportunitiesof other U.S. factoring firms which would enhance our ability to increaserevenues and profits, add additional factoring services and increase ourgeography and clients."

Anchor provides accounts receivable financing to most types of U.S.businesses where the performance of a service or the delivery of a product canbe verified. We have the ability to check a company's credit and evaluate itsability to pay across most industries. Typically, small businesses do nothave adequate resources to manage the credit and A/R collection functionsinternally and cannot afford to provide their customers extended credit terms.

Anchor is continuing to benefit from the current credit problemsexperienced by banks and other financial institutions. Banks face continuedpressure to exit troubled loans and rebuild their balance sheets. As aresult, lending criteria have tightened across the spectrum making itincreasingly difficult for small businesses to obtain working capital.Through our sales force and marketing efforts we are implementing various waysto obtain business opportunities from bank rejections and turndowns. Unlike abank, Anchor is not as focused on the credit quality of its clients, but ismore focused on the creditworthiness of its clients' customers and validity oftheir invoices. Therefore, Anchor is often able to provide working capital tosmall businesses when banks cannot.

We are excited about our future expansion opportunities in the factoringindustry which is highly fragmented and not dominated by any single firm(s).We will continue to communicate important developments as they occur.

About Anchor

Anchor provides innovative accounts receivable funding to small andmid-size U.S. businesses. Our funding facility, which is based uponcreditworthiness of accounts receivable, provides rapid and flexible financingto support small businesses' daily capital needs.

Additional Information

For additional information, a copy of Anchor's Form 10-Q can be obtainedon the Internet by going to www.sec.gov, clicking "Search for Companyfilings," then clicking "Companies & Other Filers," typing in our company nameand clicking "find Companies."

Safe Harbor Statement Under the Private Securities Litigation Reform Actof 1995.

Certain statements in this press release constitute "forward-lookingstatements" within the meaning of the Private Securities Litigation Reform Actof 1995. Such forward-looking statements involve known and unknown risks,uncertainties and other factors which may cause the actual results,performance or achievements of the company to be materially different from anyfuture results, performances or achievements express or implied by suchforward-looking statements. The forward-looking statements are subject torisks and uncertainties including, without limitation, changes in levels ofcompetition, possible loss of customers, and the company's ability to attractand retain key personnel.

SOURCE Anchor Funding Services, Inc.