Accredited Closes $1.40 Billion Asset-Backed Securitization.

SAN DIEGO -- Accredited Home Lenders Holding Co. (NASDAQ:LEND), a national non-prime mortgage lender based here, has closed a $1.40 billion securitization containing approximately $1.05 billion of first-lien and second-lien residential mortgage loans through its real estate investment trust (REIT) subsidiary, Accredited Mortgage Loan REIT Trust. An additional $350 million of mortgage loans will be delivered to the securitization trust in July and August 2006. The REIT subsidiary was established in May 2004 to reduce long-term funding costs, provide flexibility in structuring securitizations and facilitate capital structure alternatives. The securitization utilized a senior/subordinated structure, with four classes of senior notes and nine classes of subordinate notes being issued.

According to Jim Konrath, Accredited's Chairman and Chief Executive Officer, "We took advantage of a favorable capital structure, tight ABS spreads and a strong investor demand for our bonds to upsize this transaction, making it the largest Accredited securitization issued to date. We remain committed to growing our on-balance sheet portfolio as a key component in our core corporate strategies of diversified loan dispositions and managing for profit."

Lead manager for the transaction was Goldman, Sachs & Co., with Credit Suisse, Merrill Lynch & Co., Bear, Stearns & Co. Inc. and UBS Investment Bank acting as co-managers.

(S&P/M)
Class      Rating      Note Balance    WAL Benchmark  Spread    Price
-----     ---------    ------------   ---- ---------  ------    -----
  A-1     AAA/Aaa      $559,514,000   0.95 1M LIBOR     .04%     100
  A-2     AAA/Aaa       158,862,000   2.00 1M LIBOR     .09%     100
  A-3     AAA/Aaa       289,467,000   3.25 1M LIBOR     .15%     100
  A-4     AAA/Aaa       181,457,000   6.41 1M LIBOR     .26%     100
  M-1     AA+/Aa1        41,300,000   4.82 1M LIBOR     .27%     100
  M-2     AA+/Aa2        37,100,000   4.78 1M LIBOR     .29%     100
  M-3     AA/Aa3         23,800,000   4.76 1M LIBOR     .33%     100
  M-4     AA/A1          20,300,000   4.75 1M LIBOR     .35%     100
  M-5     AA-/A2         20,300,000   4.74 1M LIBOR     .38%     100
  M-6     A+/A3          17,500,000   4.73 1M LIBOR     .45%     100
  M-7     BBB+/Baa1      15,400,000   4.73 1M LIBOR     .85%     100
  M-8     BBB/Baa2       10,500,000   4.72 1M LIBOR    1.05%     100
  M-9     BBB-/Baa3      21,700,000   4.71 1M LIBOR    1.90%     100

The securitization is structured as a financing by Accredited with the result being that both the mortgage loans and the debt represented by the notes remain on Accredited's balance sheet.

Accredited used the proceeds from the securitization primarily to repay warehouse financing for the mortgage loans.

Copies of the prospectus and supplement relating to the notes may be obtained from Accredited's Investor Relations Department, 15090 Avenue of Science, San Diego, CA 92128.

About Accredited Home Lenders

Accredited Home Lenders Holding Co. is a nationwide mortgage banking company that originates, finances, sells, securitizes and services nonprime mortgage loans secured by single-family residences. The company is headquartered in San Diego. Additional information may be found at http://investors.accredhome.com.

About Accredited Mortgage Loan REIT Trust

Accredited Mortgage Loan REIT Trust is a Maryland real estate investment trust that was formed in May 2004 and was created for the purpose of acquiring, holding and managing real estate assets that will generate net income for distribution to its shareholders.

Forward-Looking Statements

Certain of the information discussed herein constitutes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements regarding the financing plans of Accredited Home Lenders Holding Co. and Accredited Mortgage Loan REIT Trust, their prospects and future results, planned revenue generating strategy, expected net earnings, origination volume, whole loan premiums, and hedging strategy and results. Such statements are based on current expectations, and the actual results and the timing of certain events could differ materially from those projected in or contemplated by these forward-looking statements due to a number of factors, including but not limited to financial market conditions, interest rate volatility and the level of interest rates generally; general political and economic conditions; the sustainability of loan origination volumes; the availability of financing for the origination of mortgage loans; the ability to sell or securitize mortgage loans; and other risk factors outlined in Accredited Mortgage Loan REIT Trust's annual report on Form 10-K for fiscal year 2005 and its report on Form 10-Q filed with the Securities and Exchange Commission ("SEC") for the first quarter of 2006, as well as Accredited Home Lenders Holding Co.'s annual report on Form 10-K for fiscal year 2005 and its report on Form 10-Q filed with the SEC for the first quarter of 2006, and other documents filed with the SEC.