Overlord Announces Second Quarter Results

CALGARY, August 25, 2006 - Overlord Financial Inc. (TSX-V: OFI) (the "Company") announces the Company has filed its unaudited interim consolidated financial statements for the period ended June 30, 2006 and related Management Discussion and Analysis with Canadian Securities Regulatory Authorities. The Company is listed on the TSX Venture Exchange under the ticker symbol OFI.

During the first half of 2006, the Company recorded net income of $1.3 million. Net income consisted of a gain on sale of marketable securities of $1.2 million, a gain on sale of Sword Management Inc. ("SMI") (a wholly owned subsidiary) of $1.2 million and management fees of $0.2 million offset by expenses of $1.3 million. During the second quarter, the Company sold all of the issued and outstanding shares of SMI to SEL in exchange for the issuance of 1.15 million common shares of SEL valued at $1.00 per share. Copies of the unaudited interim consolidated financial statements and Management Discussion and Analysis may be obtained via www.sedar.com or by emailing info@overlordfinancial.com.

Overlord Financial Inc. is a Canadian specialty fund manager focused on providing all classes of investors in Canada and throughout the world with a new generation of investment vehicles offering superior rates of return, preservation of capital, liquidity, and capital appreciation.

For further information concerning this press release, please contact:

Claude Blanchet
President and CEO
Overlord Financial Inc.
(403) 770-4805

Larry Titley
Vice President and CFO
Overlord Financial Inc.
(403) 770-4808

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

Click here for PDF version