Ameritrans Capital Corporation Declares Quarterly Dividend On 9 3/8% Preferred Stock

The board of directors of Ameritrans Capital Corporation
(NASDAQ: AMTC, AMTCP) has declared a dividend of $0.28125 per share on
its 9 3/8% cumulative participating redeemable Preferred Stock for the
period April 1, 2005 through June 30, 2005. The dividend is payable on
July 15, 2005 to shareholders of record as of June 30, 2005. The
dividend is being declared from estimated earnings for the period
ending June 30, 2005.
   Ameritrans Capital Corporation is a specialty finance company
engaged in making loans to, and investments in, small businesses.
Ameritrans' wholly-owned subsidiary, Elk Associates Funding
Corporation, has been licensed by the United Stated Small Business
Administration (the "SBA") as a Small Business Investment Company
since 1980. The company maintains its offices at 747 Third Avenue, 4th
Floor, New York, NY, 10017.

   This announcement contains certain 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.