Merrill's Distressed Sale Creates Opportunity for Oxford Funding

HOUSTON, TX, Jul 31 (MARKET WIRE) --
(PINKSHEETS: OXFD) - As the banking industry comes to terms with the
ever-expanding subprime mortgage meltdown, Houston-based Oxford Funding
stands ready to buy distressed debt at pennies on the dollar and turn
around bad loans, the company says.

The news of Merrill Lynch selling off billions of dollars in troubled
loans at just 22 cents on the dollar sets a precedent which presents a
positive outlook for Oxford, which relies on such opportunities for
success, according to Oxford.

"We won't be using these assets but it's indicative of the type of
opportunity there is out there," says Bob Dunn, president of Houston-based
Oxford Funding (PINKSHEETS: OXFD).

CNBC reports the sell-off by Merrill Lynch could "set the standard" for
future write-downs of mortgage debt by other large banking groups feeling
the pressure to follow Merrill Lynch's example. Oxford Funding is able to
limit the financial exposure of major banks by buying debt at deep
discounts and working hard to get borrowers back on a paying schedule.

"While some banks are cutting their losses, we're seeing gains. It's the
best case scenario for banks in the short-term and the best for us in the
long-term," says Dunn. "Oxford stands ready to take on the challenge of
distressed loans and bring them back up to par for the long-awaited
recovery in the housing market."

The news of Merrill Lynch is only the beginning, Oxford predicts. Analysts
agree. And, the company predicts hearty investors will be lining up to
take on the loans Oxford is able to repair.

"These new opportunities prove the business model of Oxford Funding is
solid, sound and ultimately successful," says Dunn.

About Oxford Funding: Oxford Funding (PINKSHEETS: OXFD) is a publicly
traded asset resolution company specializing in the purchase, sale and
management of individual and bulk mortgage loan portfolios.

This news release contains forward-looking information within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, including statements
that include the words "believes," "expects," "anticipate" or similar
expressions. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual results,
performance or achievements of the company to differ materially from those
expressed or implied by such forward-looking statements. In addition,
description of anyone's past success, either financial or strategic, is no
guarantee of future success. This news release speaks as of the date first
set forth above and the company assumes no responsibility to update the
information included herein for events occurring after the date hereof.

Media Contact:

Robert M. Dunn
Ronald C. Redd
Takenya "TK" Arceneaux
Email: 713-975-9602
Web site: www.oxfordfunding.com

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