[advocacy-discuss] Andrew Vaughey, Mortgage Assistance Center Corporation Closes $3 million Private Placement

[Super Star]

Andrew Vaughey, Mortgage Assistance Center Corporation Closes $3 million
Private Placement



Dallas, Texas (PRWeb) December 29, 2006 -- Mortgage Assistance Center
Corporation (OTC BB: MTGC) (the "Company"), which acquires, manages and
resells non-performing mortgages secured by real estate, and distressed real
estate properties, today announced that it has closed a private placement
for $3 million of new financing as an equity investment in the Company with
the issuance by the Company of shares of Series A Preferred Stock having a
total purchase price of $3,000,000.

The financing provides for the issuance of up to $3,000,000 in Series A
Preferred Stock, with $1,500,000 in Series A Preferred Stock issued at
closing on November 30, 2006, and the remaining $1,500,000 to be issued in
tranches of $500,000 at the Company's option, assuming that the Company is
able to meet certain benchmarks agreed upon by the Company and the
purchaser. In connection with the issuance of Series A Preferred Stock, the
Company issued to the purchaser of Series A Preferred Stock warrants to
purchase common stock representing up to 37.5% of the fully diluted common
stock of the Company at a purchase price of $0.01 per share. The Series A
Preferred Stock will pay dividends at the rate of 10% per annum on a
compounding quarterly basis (dividends may be deferred during the first 12
months); may be redeemed without penalty by the Company at any time prior to
the seventh anniversary of the date of issuance; and must be redeemed by the
Company on the seventh anniversary of the date of issuance, in either case,
at the face amount plus accrued but unpaid dividends.

The Purchaser is entitled to designate two of five seats of the board of
directors of the Company. William G. Payne and Rod C. Jones, principals of
FAX LP, and Cain Capital LLC, Dallas-based private equity firms, will fill
two board of directors seats representing the purchasers' interests and Dale
Hensel and Dan Barnett, major shareholders and officers of the Company, will
fill two board of directors seats representing their respective interests,
all being pursuant to a voting agreement mutually agreed upon between the
parties.

"The new financing affords the Company with the operational capital needed
as we increase our processing capability to allow for our very substantial
projected growth." remarked Dale Hensel, Chief Executive Officer of Mortgage
Assistance Center Corporation. "We are very pleased and excited to have such
respected and quality firms as our new financial partners that will bring
significant resources and expertise to us as we grow the Company."

The securities offered and sold in this private placement were sold in
reliance on an exemption from the registration requirements of the
Securities Act of 1933, as amended (the "Securities Act"). The securities
have not been registered under the Securities Act or any state securities
laws and the securities may not be offered or sold absent registration or an
applicable exemption from the registration requirements of the Securities
Act and applicable state securities laws. In connection with the offering,
Mortgage Assistance Center Corporation has agreed, subject to certain terms
and conditions, to file a registration statement under the Securities Act
covering the resale of the shares purchased and the shares issuable upon
exercise of the warrant by the purchaser of the Series A Preferred Stock.

This press release does not and will not constitute an offer to sell or the
solicitation of an offer to buy shares or warrants.

About Mortgage Assistance Center Corporation
Mortgage Assistance Center Corporation is a financial real estate services
company that acquires, manages and resells non-performing secured real
estate mortgages and distressed real estate properties. The Company has a
unique proprietary business model where non-performing notes are either
reworked to become "re-performing" and later, "performing" note status with
higher resale value; or traded "cash for keys" and quit claim deed to the
Company. When necessary, the Company has proprietary processes to foreclose,
rehabilitate and sell the mortgages and properties that are securing the
purchased mortgages.

The Company is headquartered in Dallas, Texas, and its common stock trades
on the OTC Bulletin Board under the symbol "MTGC". Additional information on
the Company is available on its website at .

"Safe Harbor" statement under the Private Securities Litigation Reform Act
of 1995: Any statements that are not historical facts contained in this
release are forward looking statements. It is possible that the assumptions
made by management for the purposes of such statements may not materialize.
Actual results may differ materially from those projected or implied in any
forward-looking statements. Such statements may involve risks and
uncertainties, including but not limited to those relating to product
demand, pricing, market acceptance, the effect of economic conditions, and
the outcome of competitive products and services, the results of the
financing efforts, the ability to complete transactions and other risks
identified in this release, and the filings of the Company with the
Securities and Exchange Commission.

For further information, please contact:
Dale Hensel
President of Mortgage Assistance Center Corporation
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