The transaction on behalf of a specialty finance company involves the sale of $117 million in non-performing residential loans and $101 million in performing and non-performing commercial real estate loans. The loans, secured by properties from California to New England, have been pooled by geography. Investors can bid the pools individually or in combinations of their choice.

The residential portfolio bids April 15, 2008. The non-performing commercial real estate loan portfolio bids April 17, 2008, and the performing commercial real estate portfolio bids May 8, 2008.

"Demand for product is strong, and a growing number of institutions are choosing to tap the extensive liquidity at the DebtX marketplace," said DebtX CEO Kingsley Greenland. "Institutions are selling to proactively manage their performing portfolios for improved diversification and risk management, and to dispose of non- or sub-performing loans quickly rather than incur significant expenses related to protracted loan workouts."

In addition to the $218 million loan sale announced today, DebtX is currently managing a separate sale of $380 million in Commercial Real Estate loans secured by properties in the southeastern United States. The first of four offerings bids April 15 at www.debtx.com , with the remainder of the sales bidding every three weeks through mid June. In March, DebtX completed the sale of $46 million in loans on behalf of the FDIC, the first sale under a five-year contract DebtX signed with the FDIC in December 2007.

With more than 4,000 registered and approved investors and 300 financial institutions selling through its exchange, DebtX operates the largest and most liquid online marketplace for loans. DebtX works with financial institutions to sell Commercial & Industrial (C&I), Commercial Real Estate, residential loans and selected consumer debt. DebtX is based in Boston, with offices in Atlanta, Chicago, New York, San Francisco and Frankfurt, Germany. -- DebtX