ROCKVILLE CENTRE, N.Y., Dec. 31 /PRNewswire-FirstCall/ -- Geneva Financial Corp. (Pink Sheets: GNVN), a specialty consumer mortgage banking company, today reported that, subject to approval by its Board of Directors and stockholders, it intends to change its name to CAPGO Financial Group Incorporated to reflect the more diversified lending platform that the Company and its subsidiaries intend to pursue. In addition, the Company's newly formed subsidiary, Progressive Real Estate Solutions Corp. ('PRESCO'), intends to exploit opportunities in the distressed, nonperforming and foreclosed residential loan markets and to originate loans in the hard-money and commercial sectors.

The Company also announced that the anticipated name change follows recent debt and equity investments aggregating $1,500,000 by West End Special Opportunity Fund LP., a private equity investor, and certain affiliates. The Company anticipates, subject to certain conditions, investment of an additional $500,000 by West End and/or such affiliates in the near future. Based on the terms of existing stock purchase and other agreements, it is also anticipated that, subject to certain conditions, West End and/or such affiliates may invest up to an additional $1,000,000 and would become a majority stockholder of the Company.

'In light of the Company's business objectives, we believe that the financial support of West End will accelerate the pace of the Company's business diversification in 2008' said Stanley Kreitman, the Company's Chairman of the Board.

The Company also announced that it is anticipated that, subject to approval by the Company's Board of Directors, Robert Beller, a member of the Company's Board of Directors, will be 1956349-6 elected to the office of Chief Executive Officer of the Company. It is anticipated that Mr. Beller will also serve as Executive Vice President and General Counsel of West End.

Mr. Beller stated that ' ... although 2007 was a challenging year for the mortgage industry, our mortgage banking operating subsidiary moved aggressively to adjust to market conditions, achieve efficiencies, and to expand its offering of mortgage products. We see real opportunity in the reverse mortgage and FHA loan sectors in 2008 and are pleased to have gotten PRESCO started. While we remain cautious about the overall mortgage environment, we are optimistic about our ability to grow and to diversify the base of our business operations.'

Forward Looking Statements

Statements in this press release may contain 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward- looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those included in forward-looking statements due to a variety of factors. Factors that could affect the Company's operating plans and diversification include, but are not limited to, the Company's ability to: execute its business plan, develop and maintain operating efficiencies, attract and retain qualified personnel, compete in its markets, respond to changing markets and changes in the mortgage and real estate markets as well as changes in the general economy, raise sufficient operating capital, and maintain relationships with customers and funding sources. The Company undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.

SOURCE Geneva Financial Corp.