Ameritrans Announces Results of 2007 Annual Meeting

  
    
  
  
    
      Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) today hosted its 
      annual meeting of shareholders. All seven proposals at the meeting were 
      approved by the requisite vote of shareholders.
    
    
      Election of Board of Directors
    
    
      As part of the annual meeting, the shareholders elected nine members to 
      serve on the Company's Board of Directors: Steven Etra, Michael Feinsod, 
      Wesley Finch, Gary C, Granoff, Murray A. Indick, John R. Laird, Howard 
      Sommer, Ellen M. Walker, and Ivan J. Wolpert. Each of the Directors will 
      serve on the Company's Board of Directors until the Company's next 
      annual meeting of shareholders.
    
    
      Increase in Authorized Shares
    
    
      The shareholders also approved amending the Company's Certificate of 
      Incorporation to increase the number of authorized shares of common 
      stock of the Company from 10,000,000 shares to 50,000,000 shares. The 
      amendment to the Certificate of Incorporation was filed with the 
      Delaware Secretary of State on Tuesday, June 19, 2007 and became 
      effective immediately upon filing.
    
    
      Approval of Private Offering of Common Stock
    
    
      The shareholders of the Company also approved a private offering of the 
      Company’s common stock, $.0001 par value, at a 
      fixed purchase price of no less than book value to a limited number of “accredited 
      investors,” as that term is defined in Rule 
      506 of Regulation D, promulgated under the Securities Act of 1933, as 
      amended. Additionally, for every five (5) shares of common stock 
      purchased, the Company will issue to the investor one (1) warrant, 
      exercisable for five (5) years from the date of issuance, to purchase 
      one (1) share of common stock at an exercise price to be fixed at a 
      specified dollar amount that is 110% of the purchase price of the 
      shares. The Company proposes to raise aggregate gross proceeds between a 
      minimum of $25,000,000 (the “Minimum Offering”) 
      and up to a maximum of $50,000,000.
    
    
      Amendments to Non-Employee Director and Employee Stock Option Plans
    
    
      The shareholders also approved certain amendments to the Company's 1999 
      Non-Employee Director Stock Option Plan and approved and ratified 
      certain grants of options to disinterested members of the Board of 
      Directors under that plan. Additionally, the shareholders approved an 
      amendment to the 1999 Employee Stock Option Plan increasing the number 
      of shares of Common Stock reserved under the 1999 Employee Plan from 
      200,000 to 300,000.
    
    
      Preferred Stock Dividend Declaration
    
    
      Additionally, the Board of Directors has declared a dividend of $0.28125 
      per share on its 93/8% Cumulative Participating 
      Redeemable Preferred Stock for the period April 1, 2007 through June 30, 
      2007. The dividend is payable on or about July 16, 2007 to shareholders 
      of record as of June 29, 2007. The dividend is being declared from 
      estimated earnings for the period ending June 30, 2007.
    
    
      Ameritrans Capital Corporation is an internally managed, closed-end 
      investment company that has elected to be regulated as a business 
      development company (“BDC”) 
      under the Investment Company Act of 1940, as amended. Ameritrans 
      originates, structures and manages a portfolio of medallion loans, 
      secured business loans and selected equity securities. 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, NY 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.