CapSource Financial, Inc.  
Taking Advantage of NAFTA

  
News Release
         
For Immediate Release - April 4, 2006
Company Web Site:  www.capsource-financial.com

CAPSOURCE TOTAL REVENUES FOR 2005 UP 185% OVER 2004 TO JUST OVER $20.5 MILLION

(Boulder, Colorado) CapSource Financial, Inc. announced that for the year ended December 31, 2005, its consolidated total revenue increased 185.5% to $20,608,509, compared to $7,217,276 in the same period last year. For the quarter ending December 31, 2005, consolidated total revenue was $5,291,577compared with $2,523,414 for the same period in 2004, an increase of 109.7%.

Fred Boethling, President and CEO said, "Our 2005 results are gratifying and moreover are consistent with our pattern over the last few years." Mr. Boethling noted that, "Since 1999 our consolidated revenues have grown in excess of 100% compounded annually - a record of achievement of which we are proud."

For the year ended December 31, 2005, gross profit increased 84.0% to $1,335,772 compared to $725,813 for the same period last year. This improvement resulted from the increase in trailer sales, partially offset by the lower profit margins resulting from pricing pressures on trailer sales during 2005, as well as the impact of the decline in lease/rental income.

Randy Pentel, Chairman of CapSource, reflected on the results of 2005 and said, "We take a longer-term view of our business and our results are consistent with our plan to position CapSource for success. The entire CapSource team in both Mexico and the USA have continued to show their ability to produce above and beyond expectations."

For the year ended December 31, 2005, CapSource reported a net loss of $1,794,456, or $0.16 per diluted share. Excluding a one-time non-cash interest charge of $353,100 related to the conversion of debt to equity in 2005, the net loss was $1,441,356, or $0.13 per diluted share, compared to a net loss of $1,576,163, or $0.16 per diluted share for the same period last year. The reduction in net loss was a result of the growth in trailer sales and gross profit, partially offset by increases in selling, general and administrative expense, net interest expense, net foreign exchange loss, and income taxes.


About CapSource Financial, Inc.

CapSource Financial, Inc. was incorporated in 1996 to take advantage of the North American Free Trade Agreement (NAFTA) and the increased economic activity that NAFTA triggered when the world's largest free trade area was created by linking 406 million people in Mexico, the U.S. and Canada producing more than $11 trillion worth of goods and services. Mexico is now the United States' second largest trading partner with an average of $650 million in goods crossing the border each day. U.S. trade with Mexico has increased nearly 500 percent - from $48 billion to $239 billion since the passage of NAFTA. The vast majority of this trade moves by truck.

CapSource owns and manages a lease/rental fleet of over-the-road truck trailers and related equipment through its REMEX subsidiary and sells trailers under an exclusive relationship with Hyundai through its RESALTA subsidiary. Both REMEX and RESALTA are based in Mexico City. CapSource's common stock trades on the electronic bulletin board under the symbol CPSO.

Certain matters discussed within this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although CapSource Financial, Inc. believes the expectation reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from our expectations include financial performance, changes in national economic conditions, economic conditions in Mexico, availability of financing, governmental approvals and other risks detailed from time to time in the company's SEC reports.


For additional information contact: CapSource: Fred Boethling at (888) 574-6744; visit the company’s website: www.capsource-financial.com.