Genesis Financial Announces Diversification into Credit Cards, Consumer Lending and Canada

Beaverton, OR ? Genesis Financial Services, Inc., celebrated its fourth birthday eearlier this week and announced a diversification from its consumer debt buying into credit card issuing programs and loan origination. The company also announced the formation of GFS Canada, a wholly owned subsidiary that pursues opportunities for debt buying in Canada. Genesis has a solid foundation in portfolio acquisitions and debt recovery, with 2 million accounts representing $1.8 billion in assets currently under management. The company?s consumer receivables purchases for 2004 had a face value of more than $980 million.

By adding divisions for credit cards and consumer loans, Genesis now provides a broader spectrum of solutions for companies seeking liquidity for their consumer receivables. Primary products include:

• Debt Recovery ? Genesis acquires distressed debt across a wide array of industries and credit types and offers an extensive array of collection methods and ways to pay.

• Bankcard Services ? Genesis? balance transfer card program offers cards to debtors who agree to transfer their balance onto the new card account. Bankcard Services intends to originate card programs with partners and to acquire card portfolios.

• Consumer Lending ? Genesis acquires and services performing loans from debt generators such as vocational schools and infomercial sponsors. The company also originates loans for borrowers who may have difficulty meeting the credit criteria of traditional lenders.

?Our debt buying, loan origination and card services expertise can be applied independently or in customized programs designed to fit our partners? needs,? says CEO Irving J. Levin. ?These product lines can be applied individually, but are often highly complementary: We use these tools in concert to optimize cash flow from our portfolios.?

The new products play to the strengths of the management team at the company. Genesis was founded in 2001 by CEO Irving J. Levin, a Portland-based entrepreneur. Levin has been in the financial services business for 25 years, primarily in consumer lending and credit cards. He has previously launched and directed two different financial institutions ? In 1987 he founded First Consumers National Bank, the nation?s first credit card bank, which he left in 1990. In 1991, he formed Renaissance Holdings, Inc., a subprime credit card issuer known for its analytical sophistication, innovative products and service quality. Renaissance was sold to Household International in 2000 for $300 million.

Levin has drawn from a diverse talent pool as he formed this latest venture. Many of the senior managers at Genesis were managers at Renaissance. The Lending and Bankcard divisions at Genesis and the Acquisitions unit are each headed by Renaissance alumni with a background in subprime lending, card issuing, and debt-buying activities. Finance and Marketing/Debt Recovery executives have significant management experience in a variety of other industries.

Genesis entered the Canadian marketplace quietly in 2004 with the establishment of GFS Canada, a wholly-owned subsidiary. GFS Canada functions as a debt-buying partner with banks, retailers, telecom providers and collection agencies to buy and service charged-off receivables.

?The Canadian business climate is attractive to us because there is a strong partner orientation and the number of debt sellers is rapidly increasing,? says Charlie Burrows, Chairman of GFS Canada and SVP of Marketing and Debt Recovery at Genesis. ?These opportunities represent a significant portion of the investment dollars the company expects to put into play in 2005 and beyond.?

?Our strong customer orientation and creative deal structuring have been well received in Canada,? says GFS Canada CEO Vernon Fuller, VP of Acquisitions for the parent company. ?We enjoy working with our Canadian partners. In announcing our presence there formally, we are sending a clear signal of our long-term commitment to the Canadian market.?