Ameritrans Capital Corporation Announces Extension of Closing Date for Sale of Taxicab Medallion Portfolio

  
    
  
  
    
      Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) today announced 
      that Ameritrans and its wholly owned subsidiary, Elk Associates Funding 
      Corporation, entered into an agreement with Medallion Financial Corp. 
      and its wholly owned subsidiary Medallion Bank to extend to October 17, 
      2008, the closing date of the sale to Medallion and its subsidiaries of 
      substantially all of Elk’s taxicab medallion 
      loans and certain small business loans. The parties previously entered 
      into a definitive agreement on July 16, 2008 with a closing anticipated 
      on or before October 15, 2008. The transaction is subject to customary 
      closing conditions.
    
    
      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 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, including but not limited to the possibility 
      that the above described transaction will not close by October 17, 2008. 
      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.