Ameritrans Completes Interest Rate Swaps

Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP,
AMTCW) announced the completion of two interest swap transactions, for
$5 million each, which were effective on October 14, 2005. One swap
has a two year period and one swap has a three year period. The swaps
are part of Ameritrans' plan to fix a portion of its borrowing costs.
   Gary C. Granoff, Ameritrans' President said, "We are pleased to
have completed this transaction. With market interest rates
increasing, these two interest rate swaps will permit us to fix our
interest expense at 6.20% on $5,000,000 for two years from the
effective date, and to fix our interest expense at 6.23% on an
additional $5,000,000 for three years from the effective date."

   Ameritrans Capital Corporation is a specialty finance company
engaged in making loans to and investments in small businesses.
Ameritrans' wholly owned subsidiary Elk Associates Funding Corporation
was licensed by the United States Small Business Administration as a
Small Business Investment Company (SBIC) in 1980. The Company
maintains its offices at 747 Third Avenue, 4th Floor, New York, New
York 10017.

   THIS ANNOUNCEMENT CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH
STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PRESENTLY
ANTICIPATED OR PROJECTED. AMERITRANS CAPITAL CORPORATION CAUTIONS
INVESTORS NOT TO PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS,
WHICH SPEAK ONLY AS TO MANAGEMENT'S EXPECTATIONS ON THIS DATE.