Ameritrans Capital Corporation Announces Michael Feinsod Appointed Chief Executive Officer

  
    
  
  
    
      Ameritrans Capital Corporation, (NASDAQ: AMTC, AMTCP), today announced 
      that its board of directors appointed Michael Feinsod Chief Executive 
      Officer, in addition to his duties as President, effective October 10, 
      2008. As part of the management change, Gary C. Granoff will step down 
      as Chief Executive Officer and take the title of Managing Director, 
      while continuing as Ameritrans’ Chairman of 
      the Board and Chief Financial Officer. Mr. Granoff has served as 
      Ameritrans' Chairman since its founding.
    
    
      Mr. Feinsod said “I am pleased to take on this 
      added responsibility. It is with great appreciation that I accept the 
      position and look forward to continuing the transformation of Ameritrans 
      into a premier business development company. As we face the current 
      challenges in financial markets, there is a premium on solid 
      underwriting, risk management, and a focus on core lending principles. 
      Ameritrans has built a business plan based on these principles.”
    
    
      The Company's management further stated, “On 
      behalf of the entire Ameritrans Board, we thank Gary Granoff for his 
      hard work and dedication to Ameritrans. Gary has grown the Company since 
      inception and hands over a firm that is on solid financial footing and 
      poised for future growth.”
    
    
      Mr. Granoff said, “I'm extremely proud of my 
      tenure at Ameritrans. In 1980, we set out to build the Company into a 
      premier niche lender in the taxicab medallion business. I am happy to 
      say we accomplished that goal and now look forward to the expansion of 
      the Company’s new area of focus. I look 
      forward to remaining as Chairman of the Board and as an active member of 
      management over the coming years. I have great confidence in Michael’s 
      leadership abilities and look forward to the successful execution of the 
      strategy.
    
    
      Ameritrans has a 28 year history of portfolio growth through secured 
      lending. Important facts worth noting:
    
    
      
        Ameritrans’ net asset value per share, as of 
        June 30, 2008, was $5.06. As of September 30, 2008, our portfolio 
        continued to perform with record low delinquencies.
      
      
        As of September 30, 2008, Ameritrans had approximately $57.6 million 
        of total loans receivable. Adjusted for the anticipated sale of our 
        medallion portfolio, on a pro forma basis, Ameritrans will have 
        approximately $30.1 million of total loans receivable outstanding. As 
        of September, 30, 2008, Ameritrans had approximately $12.5 million in 
        corporate loans, a 9% increase over the previous quarter. All 
        corporate loans are performing.
      
      
        Ameritrans has implemented various internal processes to reduce risk 
        in recent months. Ameritrans owns no synthetic securities with its 
        portfolio comprised of over 75% in first lien loans.
      
      
        As of September 30, 2008, Ameritrans had approximately $41 million in 
        total debt, including $12 million of SBA Subordinated Debentures. We 
        expect to pay down all of the Company’s 
        existing bank debt with the proceeds from our medallion sale. We are 
        exploring new relationships for the financing of our corporate loan 
        strategy.
      
      
        Ameritrans recently announced the first quarter dividend on its 9 3/8 
        participating preferred stock. The Company has paid all dividends due 
        on the preferred stock since its issuance.
      
    
    
      “I am confident that this change will enhance 
      future performance as we intensify our focus on the corporate loan 
      strategy and conservatively manage our balance sheet,” 
      Mr. Feinsod concluded.
    
    
      Mr. Feinsod becomes CEO after approximately two years as President of 
      Ameritrans and Senior Vice President of Elk Associates Funding 
      Corporation, the company’s wholly-owned SBIC 
      subsidiary. Since 1999, Mr. Feinsod has been Managing Member of Infinity 
      Capital, LLC, an investment management company. Mr. Feinsod earned a BA 
      from George Washington University and a JD from Fordham University 
      School of Law.
    
    
      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, conditions or results and involve a 
      number of risks and uncertainties. Actual results and conditions 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.