Aames Announces Updated Preliminary Results of Cash and Stock Elections by Aames Stockholders in Connection with Accredited Merger.

LOS ANGELES -- Aames Investment Corporation ("Aames") (NYSE: AIC), received an update from U.S. Stock Transfer Corporation, the exchange agent in connection with the merger of Aames with a subsidiary of Accredited Home Lenders Holding Co. ("Accredited") (Nasdaq: LEND), with respect to the preliminary results of the cash and stock elections by Aames stockholders. Accordingly, the updated preliminary results are as follows:

Cash Elections: Elections to receive cash were made with respect to approximately 39.5 million shares of Aames common stock, of which approximately 4.0 million shares remain subject to outstanding guarantees of delivery;

Stock Elections: Elections to receive Accredited common stock were made with respect to approximately 23.1 million shares of Aames common stock, of which approximately 0.3 million shares remain subject to outstanding guarantees of delivery;

These elections are subject to proration and allocation provisions as described in the joint proxy statement and prospectus mailed to stockholders of Aames in connection with the September 14, 2006 special meeting of stockholders. Based on these preliminary results of the elections and subject to confirmation of the validity of elections made, the number of failed guaranteed deliveries, whether the failed deliveries relate to stock or cash elections and final proration calculations, the merger consideration currently estimated to be paid to Aames stockholders is as follows:

Cash Elections: Aames stockholders who validly elected cash would be expected to receive $4.8616 per share for approximately 40% of their shares and 0.0936 of a share of Accredited common stock for approximately 60% of their shares with respect to which that election was made;

Stock Elections: Aames stockholders who validly elected to receive Accredited stock would be expected to receive 0.0936 of a share of Accredited common stock for each Aames share with respect to which that election was made; and

Non-Elections: Aames stockholders who did not make a valid election would be expected to receive 0.0936 of a share of Accredited stock for each of their shares.

The final results of the cash and stock elections, including the consideration to be received by Aames stockholders who validly elected cash and those who validly elected stock are expected to be announced by Accredited on or about October 5, 2006.

Further Information

For more information, contact Steven Canup, Senior Vice President, Corporate Development and Investor Relations, in Aames Investment's Investor Relations Department at [phone] or at [e-mail] via email. Alternatively, you may contact Rick Howe, Director of Corporate Communications for Accredited, at [phone] or [e-mail].