Accredited Updates 2006 Outlook; Sets Q3 Call Date.

SAN DIEGO -- Accredited Home Lenders Holding Co. (NASDAQ:LEND) ("Accredited") announced today it anticipates fully-diluted earnings per share for the year will not reach the lower end of the company's previous 2006 guidance of $4.50.

Increasing turbulence in the non-prime mortgage market has impacted the company's ability to achieve its previous earnings guidance. The most significant factors underlying this turbulence include:

* Origination volume and loan submissions have not increased as much as the company anticipated and continue to be adversely affected by a combination of pricing competition and product contraction that has been prevalent in the market throughout 2006.

* Whole loan premiums and securitization returns are under more pressure than previously anticipated, caused a decrease in whole loan investor appetite for certain products, as well as changes in credit standards and equity requirements promulgated by the various rating agencies.

* Delinquency from production periods in 2005 and 2006 has risen above previous expectations, which requires the company to further bolster its reserves to prudently value the loan portfolio and potential exposure.

Accredited's Chairman and CEO, James Konrath commented, "We believe the ferocity of pricing competition is due, in part, to the current wave of merger and acquisition activity as several non-prime mortgage originators attempt to maintain production levels to become or remain attractive to potential investors."

Mr. Konrath added, "We intend to capitalize on the fundamental strengths of the company -- a deeply experienced management team, diversification in all operational areas, and a profit culture driven to all levels of the company -- as we navigate through the current turbulent cycle in the non-prime mortgage industry."

Third Quarter Release and Call

Accredited will report its full financial results for the third quarter of 2006 before the market opens on Monday, November 6, 2006. A conference call and webcast with senior management to discuss the third quarter results and details behind the updated outlook will take place on November 6 at 11 a.m. Eastern time (8 a.m. Pacific time).

Those individuals who would like to participate in the conference call should register with Mitzi Gimenez, investor relations coordinator, at 858.676.2155 or [e-mail].

The enhanced webcast with audio may be accessed at Accredited's website -- http://investors.accredhome.com. A replay will be available on the company's website shortly after the conclusion of the call.

About Accredited

Accredited Home Lenders Holding Co. is a mortgage company operating throughout the U.S. and in Canada. Accredited originates, finances, securitizes, services, and sells non-prime mortgage loans secured by residential real estate. Founded in 1990, the company is headquartered in San Diego. Additional information may be found at http://investors.accredhome.com.

Forward Looking Statements

Certain matters discussed in this news release constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements regarding the company's inability to meet its previously issued 2006 earnings guidance; statements concerning the company's loan origination volumes and the impact of market conditions and competition on those volumes; whole loan investor appetite for the company's products; predictions concerning the credit quality of the company's loan portfolio; and the company's anticipated reserve levels, levels of repurchases and premium recapture, and loss experience. 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: the ability of the company to achieve synergies, economies of scale, and employee gains following its recently completed merger with Aames Investment Corporation; interest rate volatility and the level of interest rates generally; the nature and amount of competition, the availability of alternative loan products not offered by the company, and the nature and characteristics of the loans originated by the company; the company's ability to attract and retain qualified personnel; general political and economic conditions; the sustainability of loan origination volumes; the availability of financing for the origination of mortgage loans; the ability of the company to sell or securitize mortgage loans; the company's ability to grow its portfolio; the ability of the company to manage costs; and other risk factors as outlined in Accredited Home Lenders Holding Co.'s annual report on Form 10-K for the period ended December 31, 2005, its reports on Form 10-Q for the first and second quarters of 2006, and other documents filed with the SEC.