Commercial Collector Carma Financial Services Acquires Legal Credit Recovery Corp.

TORONTO, Canada – Carma Financial Services Corporation (“Carma”)(TSXV: CFS) announces that it has entered into a definitive agreement to acquire Legal Credit Recovery Corp.

The Company said, “We are pleased to announce that we have signed a definitive agreement to acquire all operations of Legal Credit Recovery. This acquisition will become part of our Receivables Management and Debt Recovery business unit, Canada Bonded Attorney and Legal Directory Limited.”

The transaction is expected to close on or about June 15th, 2004.

Legal Credit Recovery Corp.’s President and shareholder Tamer Farah and other senior employees will join Canada Bonded Attorney.

Legal Credit Recovery is a small but rapidly growing business with a high quality client base. The management team will add operational and marketing strength to our receivables management and debt recovery operations. This acquisition will be merged into Canada Bonded Attorney and Legal Directory Limited operations in the upcoming weeks.

Neither Legal Credit Recovery Corp. nor Mr. Farah hold any outstanding securities in the capital of Carma.

Carma intends to continue to actively seek other acquisitions to compliment and grow its business operations.

CARMA is a provider of Business-to-Business accounts receivable management services including Business Information, Accounts Receivable Recovery, Accounts Receivable Management and Asset Based Lending through its wholly owned subsidiaries Canada Bonded Attorney, Lumbermen’s Credit Bureau and Mercantile Credit Bureau. CARMA is quoted on the TSX Venture Exchange under the symbol CFS.