American Mortgage Acceptance Company 2003 Year in Review.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 15, 2004

American Mortgage Acceptance Company ("AMAC" or the "Company") (AMEX:AMC) today announced a summary of the Company's business activities in 2003.

"Through 2003, AMAC was presented with both growth opportunities and challenges, and the Company was pleased to be able to adjust and refocus its business plan to respond effectively in both instances," commented Stuart Boesky, President and Chief Executive Officer of AMAC.

Portfolio Activity

Over the 12 months ended December 31, 2003, AMAC acquired approximately $40.0 million in Fannie Mae certificates and originated eight bridge loans totaling approximately $14.8 million, one mortgage loan of approximately $1.0 million, and one mezzanine loan of approximately $3.3 million. AMAC also originated approximately $16.0 million in loans through the Company's floating rate Acquisition/Rehabilitation Bridge Loan program with Fleet National Bank.

In addition, AMAC broadened its asset base through the acquisition of nine taxable revenue bonds from its affiliate, CharterMac. The nine taxable revenue bonds, each of which is secured by a first mortgage position on a multifamily property, were valued at approximately $7.6 million and carry a weighted average interest rate of 8.69%. These acquisitions enabled the Company to use its capital to acquire fully amortizing first mortgage bonds with no construction risk and a healthy yield.

As the Company reported in July, AMAC experienced some unforeseen difficulties in the Company's loan portfolio. At that time, three of AMAC's market-rate mezzanine loans were not paying interest currently, largely due to the financial misrepresentation of the borrower of the respective properties. The Company took aggressive action ahead of borrower bankruptcy filings to protect its mezzanine position and preserve its rights under the recourse guarantees. These actions included the recording of springing mortgages, taking lender possession of the collateral, and ultimately purchasing the senior mortgage positions and expediting foreclosure. In one case, AMAC retained a construction manager and completed construction upon taking title. AMAC has already seen positive results through these steps, as occupancy has increased and the properties have demonstrated improved performance, nearing stabilized operations at year-end.

Following the efforts to secure, complete, and reposition the collateral that secured AMAC's investments, the Company was subsequently able to secure a single not-for-profit buyer for all three assets, thus preserving property tax abatements that were fundamental to the original business plan for the properties. As a result, prior to the end of 2003, AMAC was successful in selling the three properties to a strong, regional owner with a substantial multifamily portfolio. The buyer's real estate tax abatement, mandated by its not-for-profit status, will begin in 2004 and will ultimately add significant value to the assets. It is expected that the properties will be refinanced during 2004 through our affiliated company, PW Funding Inc., to allow a return of substantially all of AMAC's invested capital. AMAC will likely continue to hold a mezzanine interest in the properties as contemplated by the original transaction.

"Through the tremendous efforts of our dedicated staff to implement this dispositions strategy, AMAC expects to preserve its investment without a loss of principal," added Mr. Boesky.

Capital Markets Activity

In April of 2003, AMAC completed a public follow-on offering of 1,955,000 common shares of beneficial interest at a price of $15.00 per share. The offering, which was underwritten by RBC Capital Markets and JMP Securities, resulted in aggregate net proceeds of approximately $27.5 million, including the full exercise of the underwriters' over-allotment option. The offering also served to raise AMAC's profile in the investment community, as JMP Securities joined Friedman, Billings, Ramsey & Co. and RBC Capital Markets in issuing research coverage on the Company following the transaction.

At December 31, 2003, AMAC's total market capitalization was approximately $320.4 million, which represents a 71.9% increase over the Company's market capitalization at December 31, 2002.

Interest Rate Swap 

In order to minimize the Company's floating interest rate exposure, in March 2003, AMAC entered into a five-year London Inter-Bank Offer Rate ("LIBOR") interest rate swap with an annual fixed interest rate payable of 3.48% and with a notional amount of $30 million. As of year-end 2003, approximately 35.2% of AMAC's current exposure was hedged.

Share Repurchase Plan 

Also during 2003, AMAC's Board of Trustees approved a share repurchase plan for the Company. The plan, which enables AMAC to repurchase, from time to time, up to 1,000,000 common shares, will facilitate the Company's ability to provide additional value to its shareholders through the opportunistic repurchase of shares. The repurchases will be made in the open market, and the timing will be dependant on the availability of shares and other market conditions.

About the Company

AMAC is a real estate investment trust that specializes in multifamily housing finance. AMAC originates and acquires mezzanine loans, bridge loans, and government-insured first mortgages secured by multifamily housing properties throughout the United States. For more information, please visit our website at http://www.americanmortgageco.com or contact the Shareholder Services Department directly at [phone].

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Factors which could have a material adverse effect on the operations and future prospects of our Company include, but are not limited to, changes in: economic conditions generally and the real estate market specifically, legislative/regulatory changes (including changes to laws governing the taxation of AMAC and its subsidiaries as well as our investments) availability of capital, interest rates, environmental and safety requirements with respect to the properties securing our Company's investments, adequacy of insurance coverage on any collateral directly or indirectly securing our Company's investments, general and local economic and business conditions, and changes in applicable laws and regulations. These risks and uncertainties should be considered in evaluating any forward-looking statements contained or incorporated by reference herein. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.