FiNet.com Announces Second Quarter Financial Results for the Three-Month Period Ended June 30, 2002; Revenues Increased 131% and Loss from Operations Decreased 47% from Previous Quarter


SAN RAMON, Calif., Aug. 14, 2002 (PRIMEZONE) -- FiNet.com, Inc. (Nasdaq:FNCM), and its wholly owned subsidiaries ("the Company") today announced its consolidated second quarter financial results for the three-month period ended June 30, 2002.

Revenues for the three-month period ended June 30, 2002 increased 131%, or $1.7 million, to $3.0 million compared to the three-month period ended March 31, 2002. Revenues increased 58%, or $1.1 million, compared to the three-month period ended June 30, 2001. The increase in revenues is primarily attributable to an increase in loan settlements during the three-month period ended June 30, 2002.

Monument Mortgage's business-to-business segment increased loan production by 25%, to $52.9 million, compared to $42.5 million for the three-month period ended March 31, 2002. As a result, the business-to-business segment's relative contribution to total loan production increased to 68% from 56% during the three-month period ended March 31, 2002.

Loan settlements for the three-month period ended June 30, 2002 increased to $64.1 million, an increase of 140%, compared to $26.7 million for the three-month period ended March 31, 2002.

Gross margin for the three-month period ended June 30, 2002 increased to $1.0 million from $3,000 over the prior three month period ended March 31, 2002, and increased 67%, or $0.4 million, compared to the three-month period ended June 30, 2001. The increase in gross margin is attributable to a 140% increase in loan settlements, which was offset by a 56% increase in expenses directly related to production during the three-month period ended June 30, 2002.

Loss from operations for the three-month period ended June 30, 2002 declined by 47%, or $0.9 million, to $1.0 million compared to $1.9 million for the three-month period ended March 31, 2002 and declined by 58%, or $1.4 million compared to the three-month period ended June 30, 2001.

Dan Rawitch, FiNet's Chief Executive Officer, commented, "We are very pleased with the progress of our business-to-business segment during the second quarter, which contributed primarily to our 131% increase in revenues over the previous quarter. We are also pleased with the notable improvement in gross margin during the quarter. It is encouraging that we were able to grow revenue while maintaining tight control of expenses. We believe that the non-conforming Alt-A mortgage market continues to expand, and that our focus on this niche market is paying off, as evidenced by the increased loan production of this product over the previous quarter."

Rawitch continued, "We are also pleased that our major stockholders continue to demonstrate their support and confidence in our overall business strategy, as evidenced by FiNet's recent $1.35 million private placement. As part of our strategy, we plan to use a portion of the proceeds from the private placement to integrate into our mortgage operations certain assets we plan to purchase from R.E. Ventures, Inc., in particular the www.realestate.com domain name. We believe that our acquisition and integration of these assets will complement Monument Mortgage's business initiatives in the mortgage industry by providing an easily identifiable online destination that will strengthen our efforts to provide state-of-the-art online financial solutions.

Because the Nasdaq Stock Market marketplace rules require that our shareholders approve the issuance of FiNet common stock in connection with the R.E. Ventures acquisition, the acquisition is subject to shareholder approval.

Other Financial Highlights:

Net loss available to common stockholders for the three-month period ended June 30, 2002 decreased 26%, or $0.7 million, to $1.7 million compared to the three-month period ended March 31, 2002, and decreased 26%, or $0.7 million, from $2.4 million compared to the three-month period ended June 30, 2001.

Net loss per share for the three month period ended June 30, 2002 was $0.18 per share, compared to a net loss of $0.25 per share in the three month period ended March 31, 2002 and compared to a net loss of $0.25 per share in the three month period ended June 30, 2001.

As a result of the Company's recent private placement of preferred stock and warrants to purchase common stock, net cash for the three-month period ended June 30, 2002 increased 69%, or $451,000 to $1.1 million compared to the three-month period ended March 31, 2002. The private placement proceeds were offset primarily by the Company's net loss.

The total cash position of the Company as of June 30, 2002 was $2.4 million, of which $1.1 million was immediately available and $1.3 million was restricted.

About FiNet.com

FiNet.com, Inc., through its wholly owned subsidiaries (the "Company") is a holding company that provides diversified mortgage banking and brokering services. Monument Mortgage is a provider of both traditional and online mortgage services to a diversified customer base consisting of mortgage lenders, mortgage brokers, real estate agents and consumers. Monument Mortgage offers its services to mortgage broker businesses through www.monument.com, to real estate broker businesses and to consumers through www.homewardsolutions.com and www.finet.com.

Safe Harbor

Certain statements in this press release, including statements regarding the acquisition and integration of the R.E. Ventures assets are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, including but not limited to expectations concerning the Company's ability to execute its strategy, the Company's ability to continue to increase loan production diversify its sources of revenue, and the Company's ability to obtain required shareholders approvals in connection with the Company's proposed acquisition of R.E. Ventures assets or successfully integrate those assets into the Company's operations, the Company's actual results may differ materially from those expressed or implied by such forward-looking statements. Investors are encouraged to read the "Risk Factors" section of the Company's Annual Report on Form 10-K (as amended) for the year ended December 31, 2001, and the Company's Quarterly Report on Form 10-Q (as amended) for the quarter ended March 31, 2002, which are on file with the Securities and Exchange Commission.


        FiNet.com, Inc.'s Subsidiary - Monument Mortgage, Inc.
            Supplemental Segment Information - Unaudited
                       (Amounts in thousands)


                                           Three Months Ended
 Loan production                    June 30, 2002       March 31, 2002
 ---------------                    -------------       --------------

 Business-to-business               $      52,887       $       42,528
 Business-to-consumer                      21,798               28,911
 Loan center                                3,328                4,027
                                    -------------       --------------
 Total loan production              $      78,013       $       75,466
                                    =============       ==============

 Mortgages held for sale, net       June 30, 2002       March 31, 2002
 ----------------------------       -------------       --------------
 Business-to-business               $      10,199       $       23,982
 Business-to-consumer                         N/A                  N/A
 Loan center                                  N/A                  N/A
                                    -------------       --------------
 Total mortgages held for sale,
  net                               $      10,199       $       23,982
                                    =============       ==============

                                           Three Months Ended
 Loan settlements                   June 30, 2002       March 31, 2002
 ----------------                   -------------       --------------
 Business-to-business               $      64,143       $       26,703
 Business-to-consumer                         N/A                  N/A


 Loan center                                  N/A                  N/A
                                    -------------       --------------
 Total loan settlements             $      64,143       $       26,703
                                   ==============       ==============


                  FiNet.com, Inc. and Subsidiaries
         Consolidated Statements of Operations - Unaudited
           (Amounts in thousands, except per share data)


                                       Three Months Ended
                                       ------------------
                          June 30, 2002  March 31, 2002  June 30, 2001
                          -------------  --------------  -------------
 Revenues                   $     3,001    $     1,263   $      1,855
 Cost of revenues                 1,961          1,260          1,278
                              ---------      ---------      ---------
 Gross profit                     1,040              3            577

 Operating expenses:
   General and
    administrative                1,695          1,512          2,051
   Marketing and
    advertising                      38             19            131
   Depreciation and
    Amortization                    264            280            492
   Special charges                    -              -            301
   Other                             47             47              -
                              ---------      ---------      ---------
     Total expenses               2,044          1,858          2,975
                              ---------      ---------      ---------
 Loss from operations            (1,004)        (1,855)        (2,398)

 Other income and expense:
   Other interest income             21             10             18
                              ---------      ---------      ---------
 Loss before equity in
  losses of equity-method
   investee                        (983)        (1,845)        (2,380)

 Equity in loss of equity-
  method investee                  (499)          (604)             -
 Income (loss) from
 derivative instruments             (20)            30            (14)
                              ---------      ---------      ---------
 Loss before income taxes        (1,502)        (2,419)        (2,394)

 Income tax expense
  (benefit)                          (5)             6             18
                              ---------      ---------      ---------
 Loss before cumulative
  effect of change in
  accounting principle           (1,497)        (2,425)        (2,412)

 Cumulative effect of change
  in accounting principle             -              -              -
                              ---------      ---------      ---------
 Net loss                        (1,497)        (2,425)        (2,412)

 In-substance preferred
  dividend                         (162)             -              -
 Preferred dividend                 (10)             -              -
                              ---------      ---------      ---------
 Net loss available to
  common shareholders         $  (1,669)     $  (2,425)     $  (2,412)
                              =========      =========      =========

 Basic and diluted net loss
  per common share before
   effect of change in
    accounting principle      $   (0.18)     $   (0.25)     $   (0.25)
 Cumulative effect of change
  in accounting principle             -              -              -
                              ---------      ---------      ---------
 Basic and diluted net loss
  per common share            $   (0.18)     $   (0.25)     $   (0.25)
                              =========      =========      =========

 Weighted average common
  shares used in computing
   basic and diluted net
    loss per common share         9,537          9,527          9,502
                              =========      =========      =========

                                           Six Months Ended
                                           ----------------
                                  June 30, 2002          June 30 2001
                                  -------------          ------------
 Revenues                         $       4,264          $      4,453
 Cost of Revenues                         3,221                 2,922
                                    -----------           -----------
 Gross profit                             1,043                 1,531

 Operating expenses:
   General and administrative             3,207                 4,676
   Marketing and advertising                 57                   227
   Depreciation and
    amortization                            544                   998
   Special charges                            -                   301
   Other                                     94                     -
                                    -----------           -----------
     Total expenses                       3,902                 6,202
                                    -----------           -----------
 Loss from operations                    (2,859)               (4,671)

 Other income and expense:
   Other interest income                     31                    28
                                     ----------            ----------
 Loss before equity in losses
  of equity-method investee              (2,828)               (4,643)

 Equity in loss of equity-method
  Investee                               (1,103)                    -
 Income (loss) from derivative
  instruments                                10                   (14)
                                     ----------            ----------
 Loss before income taxes                (3,921)               (4,657)

 Income tax expense (benefit)                 1                    33
                                     ----------            ----------
 Loss before cumulative effect of
  change in accounting principle         (3,922)               (4,690)

 Cumulative effect of change in
  accounting principle                        -                   (93)
                                     ----------            ----------
 Net loss                                (3,922)               (4,783)

 In-substance preferred dividend           (162)                    -
 Preferred dividend                         (10)                    -
                                     ----------            ----------
 Net loss available to common
  shareholders                       $   (4,094)           $   (4,783)
                                     ==========            ==========

 Basic and diluted net loss per

  common share before effect
   of change in accounting
    principle                        $    (0.43)           $    (0.49)
 Cumulative effect of change
  in accounting principle                     -                 (0.01)
                                     ----------            ----------
 Basic and diluted net loss
  per common share                   $    (0.43)           $    (0.50)
                                     ==========            ==========

 Weighted average common shares
  used in computing basic and
   diluted net loss per common
    share                                 9,532                 9,500
                                     ==========            ==========

                  FiNet.com, Inc. and Subsidiaries
                     Consolidated Balance Sheets
             (Amounts in thousands, except per share data)


                                         June 30          December 31
                                          2002               2001
                                       ----------         -----------
            Assets                     (Unaudited)

 Cash and cash equivalents             $   1,105         $   1,640
 Restricted cash                           1,319             2,159
 Accounts and notes receivable,
  net                                      1,136               136
 Mortgages held for sale, net             10,199             8,365
 Fixed assets, net                           997             1,422
 Investment in equity-method
  investee                                 1,120             2,223
 Derivative instruments in
  connection with equity-method
   investee                                   64               123
 Other assets                                547             1,187
                                       ---------         ---------
     Total assets                      $  16,487         $  17,255
                                       =========         =========

  Liabilities and Stockholders'
   Equity

 Liabilities:
 Warehouse and other lines of credit   $   9,843              8,292
 Accounts and notes payable                  495                231
 Accrued expenses and other
  liabilities                              4,946              4,953
                                       ---------          ---------
     Total liabilities                    15,284             13,476

 Stockholders' equity:
 Preferred stock, par value $0.01
  per share
     Authorized shares - 100
     Issued and outstanding
      convertible shares as of
       June 30, 2002 and
     December 31, 2001 - 34 and 0,
      respectively                             -                   -
 Common stock, par value $0.01
  per share
     Authorized shares - 49,900
     Issued and outstanding shares as
      of June 30, 2002 and
       December 31, 2001 - 9,542 and
        9,523 shares, respectively         1,029                1,029
 Additional paid-in capital              111,443              109,925
 Accumulated deficit                    (111,269)            (107,175)
                                       ---------            ---------
     Total stockholders' equity            1,203                3,779
                                       ---------            ---------
 Total liabilities and stockholders'
  equity                               $  16,487            $  17,255
                                       =========            =========


            

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