Resource America, Inc. Announces Payment of $3 Million On Mortgage Loan Acquired for $2 Million

Business Wire, Nov 3, 1999

PHILADELPHIA--(BUSINESS WIRE)--Nov. 3, 1999--

Resource America, Inc (NASDAQ:REXI)(the "Company") announced today that its subsidiary, Rancho Investments, Inc., received $3.0 million in full satisfaction of its mortgage loan secured by a property in Sacramento, California.

The Company acquired the loan on August 31, 1995 for $2.0 million. Today's payment, pursuant to the terms of a loan restructuring agreement, resulted from the sale of the property by the owner for $3.1 million. The property's appraised value was $3.0 million.

Edward E. Cohen, Chairman and CEO of Resource America, Inc., commented: "We are pleased with this result which again confirms the value of our mortgage loan receivables." This brings Resource America, Inc.'s total loan principal repayments to $77.2 million since January 31, 1999.

At October 31, 1999 the book value of the Company's remaining loan receivables was $184.8 million net of senior obligations.

Resource America, Inc. operates a diversified financial services company engaged in equipment leasing, energy and energy finance, and real estate finance.

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release.