PSMI OPENING OFFICE IN MIDLAND, TX

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Roswell, NM – August 17, 2007 – (RealEstateRama) — PrimeSource Mortgage, Inc. (PSMI) continues to open branches Nationwide. PSMI proudly announces the opening of an independently owned and operated (PSM) Branch in Midland, Texas, at 1002 Godfrey. Lisa Hagee, already well-established in the community, is the owner and operator of this new PSM branch operating under the name, Loan Star Mortgage.

Hagee, with over 12 years of mortgage experience, is well qualified to head up this mortgage-lending office. Hagee went to work for Norwest Bank (Wells Fargo) in 1994 and after just two years the bank transferred her to the mortgage department where she later became the manager of the Odessa, Big Spring and Abilene market. She was then offered a position with Texstar Home Loan Center. For three years she was vice president of the company as well as managing the mortgage department. With her experience in the mortgage business PrimeSource considers her a great asset.

Lisa Hagee has been married for five years and has two children. Lisa enjoys the outdoors with family events such as camping, racing, and spending time at the lake.

Incorporated in 1991 in Texas, PrimeSource Mortgage, Inc. quickly became a leading mortgage company in the Southwest and is currently licensed in 21 states. One reason for the growth and success of this company is its commitment to personalized customer service embodied in the motto: We Walk You Home. Because the mortgage process is so complex and often confusing, the company has chosen to walk hand-in-hand with each client through the entire process.

PSM Holdings, Inc. (PSMH), the parent company, is now a publicly traded company; over-the-counter (OTC) shares became available in October 2005. Ron Hanna, Chairman of the Board, said, “We are excited about this because it offers our customers and staff the opportunity to own a part of our company.”

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