Ameritrans Capital Corporation Announces Fourth Quarter and Fiscal Year June 30, 2008 Results and Declaration of Quarterly Divid

Share Name	Share Symbol	Market	Type
Ameritrans Capital Corporation (CE)	USOTC:AMTPQ	OTCMarkets	Common Stock

Ameritrans Capital (CE) (USOTC:AMTPQ)
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Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) today announced its financial results for its fourth quarter and fiscal year ended June�30, 2008. HIGHLIGHTS Fiscal Year 2008 Financial -- Net decrease in net assets from operations available to common stockholders: $(875,071) or $(0.26) per share (basic and diluted) -- Net investment loss: $(46,250) or $(0.01) per share (basic and diluted) -- Net unrealized losses: $(696,480) or $(0.21) per share (basic and diluted) -- Total fair value of investments at June 30, 2008 of $59.6 million -- Net assets per share at June 30, 2008 of $5.06 -- Stockholders' equity at June 30, 2008 of $20.8 million -- Declared 1st Quarter 2008 Preferred Dividend of $0.28125 per preferred share Portfolio Activity -- Announced Sale of Medallion Portfolio -- Medallion Loans at June 30, 2008: $29.9 million -- Commercial Loans at June 30, 2008: $13.8 million -- Corporate Loans at June 30, 2008: $11.5 million -- Average loans receivable for the period: $56.8 million -- Weighted average yield of debt and income producing securities as of June 30, 2008: 8.5% OPERATING RESULTS For the fiscal year ended June�30, 2008, Ameritrans Capital reported a net decrease in net assets available for common stockholders of $(875,071) or $(0.26) per share (basic and diluted). Net investment loss for the fiscal year was $(46,250) or $(0.01) per share (basic and diluted). Net realized/unrealized losses were $(491,051) or ($0.14) per share (basic and diluted). Net increase (decrease) in net assets can vary substantially from period to period for various factors, including the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful. As of June 30, 2008, total assets were $62.0 million, stockholders� equity was $20.8 million and net asset value per share was $5.06. In the fourth quarter of 2008, Ameritrans Capital continued solid performance in its investment portfolio. The Company made significant corporate changes during the fourth quarter and fiscal year ending June 30, 2008. As previously announced, Ameritrans entered into a definitive agreement with Medallion Financial Corp. and its wholly owned subsidiary, Medallion Bank, to sell substantially all of Elk Associates Funding Corporation�s taxicab medallion loans. Another subsidiary of Medallion Financial, Freshstart Venture Capital Corp., will purchase a small business loan at the closing for approximately $2.0 million. The transaction is subject to customary closing conditions, and is subject to certain terms and conditions. The transaction is expected to close no later than October 15, 2008. We continue with the transformation of Ameritrans Capital to a middle-market lending company. During fiscal 2008, we increased the size of our corporate loan portfolio by more than 187%. We plan to continue that growth in fiscal 2009. We believe this shift should allow the company to significantly expand its asset base in the future. We believe the current credit environment lends itself to our new strategy. Our existing corporate loan portfolio is performing well and we continue to expand our portfolio under favorable terms. The Company�s investment income for the year ended July 30, 2008, increased $383,607 or 6.5% to $6,260,277 as compared with the prior year ended June 30, 2007. The increase is primarily due to increases in interest income of $701,454 which was offset by a decrease of other fees of $241,464 and a decrease in leasing income of $76,383. The increase in interest income is primarily due to a re-allocation of assets in the Company�s investment portfolio as compared to the year ended June 30, 2007 Net decrease in net assets resulting from operations for the year ended June 30, 2008 was ($537,531) as compared to a net increase in net assets resulting from operations for the year ended June 30, 2007 of $199,072. The fair value of Ameritrans Capital�s investments at June�30, 2008 was $59.6 million. These portfolio investments (excluding cash and cash equivalents) were comprised of approximately 50.1% in Medallion Loans, 19.3% were made in Corporate Loans, 23.3% in Commercial Loans and 7.3% in life insurance and equity investments. As of June�30, 2008, the weighted average yield of debt and income producing securities was 8.50%. �We had a productive fourth quarter continuing the transformation of Ameritrans. The volatility continuing in the credit markets has provided us with numerous investment opportunities on more attractive terms than were previously available,� said Michael Feinsod, President of Ameritrans Capital Corporation. �Our fiscal 2008 results reflect the continued execution of our stated strategy. Following the closing of our Medallion Loan sale, we will continue the expansion of our Corporate Loan strategy. The current credit markets make this an opportune time to continue the expansion of this strategy. We remain focused on increasing the weighted average spread in our portfolio, while decreasing the underlying credit risk. We are accomplishing this by investing in new, higher yield investments than were previously available to us. The credit performance of our corporate loan portfolio has also remained solid, with no Corporate Loans losing principal and none on non-accrual.� With the closing of our Medallion Loan sale we expect to be bank debt free. We continue to examine all types of financing for our portfolio, including SBA debentures, bank debt, senior securities and equity sales. Our current portfolio and strong balance sheet give Ameritrans various opportunities to grow its portfolio. Preferred Dividend The Board of Directors of Ameritrans declared a dividend of $0.28125 per share on its 93/8% Cumulative Participating Redeemable Preferred Stock for the period July 1, 2008 through September 30, 2008. The dividend is payable on or about October 15, 2008 to shareholders of record as of October 9, 2008. ABOUT AMERITRANS CAPITAL CORPORATION 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. FORWARD-LOOKING STATEMENTS Statements included herein may constitute �forward-looking statements,� which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and condition may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ameritrans Capital undertakes no duty to update any forward-looking statements made herein. AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS � � June 30, 2008 and 2007 � 2008 2007 � Assets � Investments at fair value (cost of $60,431,182 and $62,708,666, respectively): Non-controlled/non-affiliated investments $ 56,782,716 $ 57,992,961 Non-controlled affiliated investments 1,424,264 1,467,192 Controlled affiliated investments � 1,391,307 � 2,920,214 � Net investments at fair value 59,598,287 62,380,367 � Cash and cash equivalents 665,893 251,394 Accrued interest receivable 602,956 596,553 Assets acquired in satisfaction of loans 38,250 56,030 Furniture, equipment and leasehold improvements, net 156,125 183,043 Deferred loan costs, net 186,760 227,874 Prepaid expenses and other assets � 733,197 � 249,622 � Total assets $ 61,981,468 $ 63,944,883 � � (Continued) AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (CONTINUED) � � June 30, 2008 and 2007 � 2008 2007 Liabilities and Stockholders� Equity � Liabilities: Debentures payable to SBA $ 12,000,000 $ 12,000,000 Notes payable, banks 28,095,697 29,332,500 Note payable � related party 100,000 150,000 Accrued expenses and other liabilities 640,576 431,577 Accrued interest payable 262,528 301,591 Dividends payable � 84,375 � � 84,375 � � Total liabilities � 41,183,176 � � 42,300,043 � � Commitments and contingencies � Stockholders� equity: Preferred stock 9,500,000 and 500,000 shares authorized, respectively, none issued or outstanding - - 9-3/8% cumulative participating redeemable preferred stock $.01 par value, $12.00 face value, 500,000 shares authorized; 300,000 shares issued and outstanding 3,600,000 3,600,000 Common stock, $.0001 par value; 45,000,000 and 50,000,000 shares authorized, respectively; 3,405,583 and 3,401,208 shares issued; 3,395,583 and 3,391,208 shares outstanding, respectively 341 340 Deferred compensation (40,921 ) (94,475 ) Stock options outstanding 141,668 118,475 Additional paid-in capital 21,139,504 21,119,817 Losses and distributions in excess of earnings (2,895,992 ) (2,649,489 ) Net unrealized depreciation � (1,076,308 ) � (379,828 ) Total 20,868,292 21,714,840 Less: Treasury stock, at cost, 10,000 shares of common stock � (70,000 ) � (70,000 ) � Total stockholders� equity � 20,798,292 � � 21,644,840 � � Total liabilities and stockholders� equity $ 61,981,468 � $ 63,944,883 � � Net asset value per common share $ 5.06 � $ 5.32 � AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS � � � Years Ended June 30, 2008, 2007 and 2006 � 2008 2007 2006 Investment income: Interest on loans receivable: Non-controlled/non-affiliated investments $ 5,663,970 $ 4,960,257 $ 4,562,680 Non-controlled affiliated investments 21,002 116,675 54,000 Controlled affiliated investments � 234,652 � � 141,238 � � 59,350 � 5,919,624 5,218,170 4,676,030 Fees and other income 340,653 582,117 436,535 Leasing income � - � � 76,383 � � 172,749 � � Total investment income � 6,260,277 � � 5,876,670 � � 5,285,314 � � Operating expenses: Interest 2,357,504 2,117,675 2,116,903 Salaries and employee benefits 1,872,228 1,773,167 1,371,442 Occupancy costs 268,502 232,195 189,505 Professional fees 786,021 825,023 478,050 Other administrative expenses 1,022,542 1,032,091 862,983 Loss and impairments on assets acquired in satisfaction of loans, net � - � � 54,339 � � 87,985 � � Total operating expenses � 6,306,797 � � 6,034,490 � � 5,106,868 � � Net investment income (loss) � (46,520 ) � (157,820 ) � 178,446 � � Net realized gains (losses) on investments: Non-controlled/non-affiliated investments (349,612 ) 456,402 (279,326 ) Non-controlled affiliated investments - (145,307 ) - Controlled affiliated investments � 555,041 � � - � � - � 205,429 311,095 (279,326 ) � Net unrealized appreciation (depreciation) on investments � (696,480 ) � 45,797 � � (223,100 ) � Net realized/unrealized gains (losses) on investments � (491,051 ) � 356,892 � � (502,426 ) � Net increase (decrease) in net assets from operations (537,571 ) 199,072 (323,980 ) � Distributions to preferred shareholders � (337,500 ) � (337,500 ) � (337,500 ) � Net decrease in net assets from operations available to common shareholders $ (875,071 ) $ (138,428 ) $ (661,480 ) � Weighted Average Number of Common Shares Outstanding: Basic and diluted � 3,394,981 � � 3,391,208 � � 2,653,898 � � Net Decrease in Net Assets from Operations Per Common Share: Basic and diluted $ (0.26 ) $ (0.04 ) $ (0.25 )

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AMTPQ Ameritrans Capital Corporation (CE)