Ameritrans Announces Results of Special Meeting of Shareholders

  
    
  
  
    
      Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) today hosted a 
      special meeting of shareholders. All five proposals at the meeting were 
      approved by the requisite vote of shareholders. As detailed below, all 
      proposals were approved by shareholders. Michael Feinsod, President of 
      Ameritrans commented, “We look forward to 
      moving ahead with the new business areas described in the notice to 
      shareholders for this meeting. We are excited at the prospects of our 
      prospective relationship with Velocity Capital Advisors, LLC and believe 
      our strong balance sheet combined with the Company’s 
      unique corporate structure, positions the Company to take advantage of 
      the current corporate lending environment.”
    
    
      Investment Advisory and Management Agreement with Velocity Capital 
      Advisors, LLC
    
    
      The shareholders approved the Investment Advisory and Management 
      Agreement with Velocity Capital Advisors, LLC. The Advisory Agreement 
      will become effective once approved by the U.S. Small Business 
      Administration (SBA) and upon the satisfaction of certain other 
      conditions described in the Advisory Agreement.
    
    
      Amendment and Restatement of Certain Investment Policies of 
      Ameritrans and its wholly owned subsidiary Elk Associates Funding Corp.
    
    
      The shareholders approved the amendment and restatement of certain 
      fundamental investment policies of Ameritrans and Elk. The amended and 
      restated fundamental investment policies for each of Ameritrans and Elk 
      are now identical. The revisions to such fundamental policies are 
      expected to facilitate the management of the Company’s 
      assets and to simplify the process of monitoring compliance with the 
      Company’s other non-fundamental investment 
      policies. In addition, the amendments of such fundamental policies are 
      intended to provide the Company with more flexibility to respond to 
      changing markets and new investment opportunities. In addition, these 
      amendments of the Company’s fundamental 
      policies will provide the Board of Directors with broader discretion to 
      determine making investment decisions permitted by the 1940 Act and 
      other applicable law.
    
    
      Increase in Authorized Shares of Preferred Stock
    
    
      The shareholders approved the amendment to the Company's Articles of 
      Incorporation to increase the number of shares of our authorized 
      preferred stock from one million (1,000,000) shares to ten million 
      (10,000,000) shares. The amendment to the Certificate of Incorporation 
      was filed with the Delaware Secretary of State on Tuesday, March 18, 
      2008 and became effective immediately upon filing.
    
    
      Approval of Private Offering of Common Stock
    
    
      The shareholders of the Company also approved a private offering of one 
      or a combination of the following securities of the Company’s 
      (i) common stock, $.0001 par value (the “Common 
      Stock”), (ii) warrants exercisable into shares 
      of Common Stock and/or (iii) shares of preferred stock, with such rights 
      and preferences as determined by the Company’s 
      Board of Directors, subject to applicable law and regulation. The 
      Company proposes to raise aggregate gross proceeds between a minimum of 
      $5,000,000 and up to a maximum of $50,000,000.
    
    
      Preferred Stock Dividend Declaration
    
    
      Additionally, the Board of Directors has declared a dividend of $0.28125 
      per share on its 9 3/8% Cumulative 
      Participating Redeemable Preferred Stock for the period January 1, 2008 
      through March 31, 2008. The dividend is payable on or about April 15, 
      2008 to shareholders of record as of March 31, 2008.
    
    
      Designation of Chief Compliance Officer
    
    
      Lastly, Silvia Mullens has been designated Chief Compliance Officer 
      effective immediately. Ms. Mullens is presently employed by the Company 
      as Senior Vice President, pursuant to an amended and restated employment 
      agreement dated September 28, 2006. Ms. Mullens new title will be Senior 
      Vice President and Chief Compliance Officer of the Company. The CCO 
      position is an at-will position for which Ms. Mullens will be 
      compensated at an additional per annum rate. Ms. Mullens has been a Vice 
      President of Ameritrans since its inception, a Vice President of Elk 
      since 1996, and the Loan Administrator of Elk since February 1994. Ms. 
      Mullens received a B.A. from Fordham University and an M.B.A. from The 
      Leonard Stern School of Business Administration of New York University.
    
    
      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.