Ameritrans Announces Special Meeting of Shareholders

  
    
  
  
    
      Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) today announced it 
      has scheduled a Special Meeting of Shareholders to be held Tuesday, 
      August 26, 2008, at 10:00 a.m., at the law offices of Stursberg and 
      Associates, LLC in New York City, to vote on the approval of the sale by 
      Ameritrans of assets that may constitute, substantially all of the 
      assets of the Company pursuant to a loan purchase agreement among the 
      Company, Medallion Financial Corp. and Medallion Bank. The Board of 
      Directors of Ameritrans, subject to applicable law and regulation, may 
      also consider and act upon such other matters as may properly come 
      before the meeting or any adjournment thereof. Definitive proxy 
      materials will be mailed to shareholders on or about August 4, 2008.
    
    
      The Company filed a definitive proxy statement with the SEC on August 1, 
      2008. Investors and security holders are urged to read these materials 
      and any other relevant materials filed by the Company with the SEC 
      because they contain important information about Ameritrans and the 
      proposal to be presented at the Special Meeting of Shareholders. 
      Investors and security holders may obtain a free copy of these materials 
      when they become available, as well as other materials filed with the 
      SEC concerning the Company at the SEC’s 
      website, http://www.sec.gov.
    
    
      Ameritrans Capital Corporation, its respective board members and 
      executive officers, other members of management, and employees may be 
      deemed to be participants in the solicitation of proxies from the 
      shareholders of the Company in connection with this proposal. 
      Information about the board members and executive officers of the 
      Company, their ownership of the Company’s 
      securities and the interests of such participants is set forth in the 
      definitive proxy statement and other statements filed with the SEC 
      concerning the Company.
    
    
      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, middle market corporate loans and selected 
      equity securities. Ameritrans' wholly owned subsidiary Elk Associates 
      Funding Corporation is 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.