BOULDER, CO-(MARKET WIRE)-May 16, 2006 -- CapSource Financial, Inc. (OTC BB: CPSO.OB - News) CapSource Financial, Inc. announced today that its consolidated total revenue for the first quarter ended March 31, 2006 was $5,494,718 compared with $3,175,518 for the same period last year, an increase of 73.0%. Total revenue is made up of two components: trailer sales/service revenues, which grew in the first quarter of 2006 by $2,302,401, an increase of 75.5% over the same period of 2005; and lease/rental income, which improved by $16,799, an increase of 13.4% compared to the same period last year.

President and CEO Fred Boethling said, "We are extremely gratified to achieve a 90.1% improvement in our gross profit for the first quarter ended March 31, 2006 to $469,947 compared to $247,202 for the same period last year." Boethling added that, "This improvement resulted from our ability to substantially increase trailer sales while reducing reliance on lower-margin, large fleet customers and increasing sales to higher-margin, lower-volume customers."

CapSource recognized a net loss of $228,409, or $0.02 per diluted share for the first quarter ended March 31, 2006, compared with a net loss of $724,707, or $0.07 per diluted share for the same period last year. Excluding a one-time interest charge of $343,100 in the first quarter of 2005, the net loss was $228,409, or $0.02 per diluted share in the first quarter of 2006, compared with a net loss of $381,607, or $0.04 per diluted share for the same period last year. This improvement in the net loss resulted from the growth in trailer sales and gross profit, partially offset by an increase in selling, general and administrative expense.

"On May 1, 2006, we took a significant step to further increase our revenues and profitability and establish a U.S. presence with the acquisition of Prime Time Trailers of Fontana, California. Prime Time is the authorized California dealer for Hyundai Translead," Boethling said. "While the acquisition of Prime Time occurred after the end of the first quarter and therefore had no impact on first quarter operating results, we look forward to integrating Prime Time's operations with our own and expect the impact to be quite positive," Boethling noted.

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, parts and service through it RESALTA subsidiary, both based in Mexico City.

CapSource, through its subsidiary Capsource Equipment Company, Inc., also owns and operates Prime Time Trailers of Fontana California, the authorized Hyundai trailer dealer for California. 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.