M Line Holdings announced that it has formed a new wholly owned subsidiary, ML Machinery Funding, Inc., to manage and fund all equipment sales for transactions involving customer financing. The profit share agreement results in all the credit checking, documentation and closing being handled by M Line's partners and the arranging of all bank lines for the program by M Line's partners. M Line anticipates initial financing through its new subsidiary by mid October.

Elite Machine Tool currently arranges funding for approximately 40% of its revenues. However, with the anticipated improved rates and capabilities M Line expects both revenues and funding levels to increase. This program which can fund throughout the U.S. will also enhance Blue Star Machinery's business.

M Line Holdings is a leading manufacturer of products, assemblies and services to the precision high tech segment of both the aerospace and medical industries as well as selling high end pre-owned Japanese Computer Numerically Controlled ("CNC") Machine Tool Equipment with key customers that include Panasonic Avionics, UTC Aerospace Systems, Beckman Coulter, BE Aerospace and a strategic alliance with Structural Integrity Engineering.

Bruce Barren, CEO of M Line, commented, "This is another example of our growth plans. This program will enhance our ability to sell equipment by offering a superior equipment financing program to our customers. It is particularly beneficial to the soon to be expanded machinery sales division and will help us gain a much greater revenue share of the pre-owned machine sales market. This Financing will have a non-dilutive effect to M Line Shareholders. This is the First of a Series of New Financing for M Line."

Tony Anish, COO of M Line, commented, "We have been working on a 'captive' leasing program for some time and are now delighted that we have signed the agreement with a local Financing Company to partner with them in this program. This will greatly enhance our ability to expand equipment revenue."