Omni Financial Services Delays Earnings Release

Omni Financial Services Inc., Atlanta, said it will delay releasing its Dec. 31, 2007 financial results, because during the fourth quarter, the company detected lending policy violations and internal control deficiencies and promptly commenced a comprehensive internal review of its underwriting, management, compliance and internal control procedures. "As a result, we have implemented internal control enhancements and improvements to our loan review and approval process. We have also made certain personnel changes and provided additional staff training and support predominantly in the community lending division," said Stephen M. Klein, chairman and CEO. While the company remains well capitalized with a risk-based capital ratio of 10.5%, the company has experienced significant deterioration in its community development lending division, primarily in Atlanta and Tampa. Omni Financial expects the weaker macroeconomic climate, general liquidity crisis and downturn in housing will slow the company's growth in 2008. "We expect continued credit deterioration in the first quarter of 2008. In order to preserve capital, the board of directors has temporarily suspended the stock repurchase plan and the $0.05 per-share quarterly dividend which increases available capital by $2.3 million annually." The company expects to release its earnings in the next few weeks.