Brooke Capital Re-Evaluates Loss Mitigation Relationships

  Brooke Capital Corporation (AMEX: BCP)
today announced that it has notified certain securitization trusts that it
will discontinue providing services to troubled borrowers unless past due
servicing fees are immediately paid. As outlined in the recent Form 10-Q
filing with the SEC, Brooke Capital is owed fees for collateral
preservation consulting by securitization trusts. The amount of these past
due fees is nearly $7 million.

Chairman Robert Orr stated, "Today's credit environment is challenging. However, delinquencies in the payment of borrower servicing fees have caused hardships for our franchisees, vendors and shareholders. Resolution of this issue is my number one priority."

About Brooke Capital Corporation:

Brooke Capital Corporation (AMEX: BCP) is an Overland Park, Kan.-based insurance organization founded in 1997. Brooke Capital is an insurance agency franchisor and loan consultant.

Contact: Karen Haus Market Street Partners [phone] Email Contact