MINNEAPOLIS – (Oct. 28, 2003) – A newly created subsidiary of Marquette Financial Companies will acquire the purchased receivables division known as KBK Financial, Inc. from KBK Capital Corporation.

The deal is expected to close in approximately 30 days. Terms were not disclosed.

KBK Capital Corporation is a commercial finance, buyout and mezzanine group, and KBK Financial is one of the largest and oldest factoring operations in the Southwest United States. In 2002, KBK Financial purchased $500 million in factored receivables from middle market businesses across 25 states. Marquette Financial Companies is a $1 billion financial services company owned by the Carl Pohlad family in Minneapolis, Minnesota.

The newly acquired company will be a subsidiary of Marquette Financial’s Meridian Bank, N.A., and will continue to operate under the name of KBK Financial. Company headquarters will continue to be based in Fort Worth, Texas, with marketing offices in Houston, Los Angeles and Atlanta. Substantially all employees of KBK Financial will be retained, including Jack Roper, who will continue as president of KBK Financial.

“The acquisition of KBK’s factoring business fits with Marquette Financial Companies’ strategy to increase our presence in commercial finance,” said Bert Colianni, executive vice president and COO for Marquette Financial. He noted that KBK Financial will be the fifth company in Marquette Financial’s commercial finance portfolio, which also includes Builder’s Mortgage Company LLC, a provider of residential construction financing; Itasca Business Credit, an asset-based lender; Marquette Capital Partners, a provider of private capital; and Marquette Funding, Inc., a factoring company providing accounts receivable financing to the transportation industry.

“Because we see specialty commercial finance as an attractive part of our portfolio of businesses, we will provide the resources that will allow KBK Financial to grow,” Colianni said. “We also plan to grow our other existing businesses, and will continue to look for additional acquisitions in factoring and asset-based lending.”

“Marquette Financial and KBK Financial have similar strategies of serving businesses through relationship-based financial services,” said Roper, who will report to Colianni. “By working together with Marquette Financial, we believe KBK will have the best-in-class factoring services to assist our business clients.”

“Marquette is clearly endowed with the human, technical and financial resources required to grow this business to a scale of national leadership,” said Robert McGee, chairman and CEO of KBK Capital Corporation. “Marquette’s capital strength, extensive experience in financial services and dedication to growth will fuel exciting new opportunities for the KBK employees and customers.

“From our perspective, we are very pleased with this sale,” said McGee. “Our success with this transaction attests to the soundness of our stated strategy of investing in high-growth, entrepreneurial businesses; installing professional and scaleable management practices; providing capital for growth and then ultimately selling the business to harvest exceptional returns.” McGee continued, “This sale of our factoring business continues our track record of the past four years -- during this period we have successfully invested in, and exited 10 portfolio companies, with a cumulative return on investment exceeding 25 percent.”

Jenna Benner, KBK Capital chief financial officer, noted further, “Our private equity and mezzanine finance staff is targeting 15 new investments, of $3-5 million in middle market businesses during the next 36 months.”

Marquette Financial concentrates its portfolio in three areas: commercial finance, commercial banking, and commercial mortgage banking. The KBK deal marks the third acquisition Marquette Financial has announced since May 2003. The first, Valley Bank of Arizona, has been combined into Community Bank of Arizona to create Meridian Bank, N.A., based in Phoenix, Ariz. The second acquisition merged the commercial real estate mortgage financing and mortgage servicing businesses of Legg Mason Real Estate Services, Inc. with NorthMarq Capital, based in Minneapolis, to create the third largest commercial real estate mortgage banking organization in the U.S.

About Marquette Financial Companies:
Marquette Financial Companies is a $1 billion financial services company owned by the Carl Pohlad family in Minneapolis, Minn. The privately held company has a diversified portfolio of banks and specialty financial service companies.

About KBK Financial:
KBK Financial is the largest and oldest commercial factoring business located in the Southwestern United States. KBK has provided more than $10 billion of financing to private and small publicly held companies since its founding in 1962. KBK Financial, a leader in providing factoring services to middle market businesses in more than 25 states, generated $500 million in factored collections in 2002.

About KBK Capital Corporation
KBK Capital’s private equity, buy-out and mezzanine finance business is conducted through its wholly-owned subsidiary U.S. Growth Funds (USGF). With committed capital resources totaling $100 million, KBK Capital invests in both debt and equity securities of private and small public businesses to fund acquisitions, recapitalizations and going-private transactions. To learn more about KBK Capital Corporation’s private equity business, visit www.usgf.com.

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