MedCapital Group Provides $6,750,000 in Non-recourse Permanent Financing

Dallas, Texas – August 6, 2004 - MedCapital Group announces $6,750,000 in financing for a distribution center in central Florida.

The borrower needed to replace the construction loan with permanent non-recourse financing. Flexibility in prepayment and maximization of loan proceeds were also important to the borrower. MedCapital Group negotiated the loan structure to meet these requirements and provide a highly competitive rate, enabling the borrower to choose from one of the following options:

$6.60mm loan amount, 145 bp's floating over 90 day LIBOR, 5 yr term / interest only
$6.75mm loan amount, 160 bp's floating over 90 day LIBOR, 5 yr term / 30 yr amort

Both options provided the borrower with prepayment flexibility after the first year, cash out at closing, and were non-recourse to the principals. The borrower chose the second option and closed at a rate of 3.2%.

"This transaction was quite gratifying because, not only were we able to accommodate the borrowers desire for non-recourse financing and prepayment flexibility, but we were also able to beat a competitive quote by 60 basis points, saving our client over $100,000 over the life of the loan", said Todd Tidmore, Managing Director of MedCapital Group.