Ameritrans Capital Corporation Files Amended Form 10-Q for the Third Quarter Ended March 31, 2008

Business Wire,  June 13, 2008  

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NEW YORK -- Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) today announced that it has filed an amended Quarterly Report on Form 10-Q/A with the Securities and Exchange Commission restating certain financial information reported for the three-month and nine month periods ended March 31, 2008. Investors should not rely on the Company's Form 10-Q filed for this period on May 14, 2008 and are urged to review the amended Quarterly Report on Form 10-Q/A filed with the Securities and Exchange Commission today.

On June 2, 2008, management discovered a possible overstatement of accrued interest receivable and related interest income with respect to a group of five (5) loans receivable in the Company's new corporate loan portfolio. The Company's Audit Committee (the "Committee"), with the assistance of management, the Company's independent registered public accountants and legal advisors conducted a review regarding this potential discrepancy. The independent review was prompted by concerns raised by management. Based on the review, on June 10, 2008, the Committee concluded that reported accrued interest receivable and related interest income as of March 31, 2008 and for the three-month and nine-month periods ended March 31, 2008 were overstated by $94,050 due to an inadvertent accounting error attributable to the interest income accrued on five loans receivable in the Company's new corporate loan portfolio.

As a result of the restatement, total investment income for the three months ended March 31, 2008 was approximately $1.58 million compared with approximately $1.68 million as previously reported. Restated net loss for the third quarter of fiscal year 2008 available to common stockholders (after payment of the preferred dividends) was ($86,498), or ($0.03) per basic and diluted common share compared to a net income available to common stockholders of $7,552 for the third quarter of fiscal year 2008, or $0.00 per basic and diluted common share as previously reported.

On an operating basis after taking into account other income and expense, and before payment of the Company's preferred stock dividends, the Company reported a restated net loss of ($2,123) compared to net income of $91,297 for the quarter ended March 31, 2008 previously reported. For the same period of fiscal year 2007, the Company reported a net loss of ($118,822).

As restated, for the nine months ended March 31, 2008, net loss available to common stockholders (after payment of the preferred dividends) totaled ($320,379), or ($0.09) per basic and diluted common share compared to a net loss available to common stockholders of ($226,329), or ($0.07) per basic and diluted common share as previously reported. For the same period of fiscal year 2007, the Company reported a net loss available to common stockholders of ($341,559), or ($0.10) per basic and diluted common share.

Additionally, on June 12, 2008, the Board authorized the repurchase of up to $1,000,000 of its outstanding common stock and/or 9 3/8 cumulative preferred stock. On June 13, 2008 the Company mailed a letter to its stockholders regarding this program. Pursuant to this new program, purchases of shares of the Company's common stock and/or 9 3/8 cumulative preferred stock will be made from time to time, subject to market conditions and at prevailing market prices, through open market purchases. Repurchased shares of common stock and/or 9 3/8 cumulative preferred stock will become authorized but unissued shares, and may be issued in the future for general corporate and other purposes. The Company may terminate or limit the stock repurchase program at any time.

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. 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.

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