Ameritrans Completes Interest Rate Swap; Lender Approved Plan Calls for Additional Swaps in April and June.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 13, 2003

Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP, AMTCW) announced the completion of a $5 million interest rate swap which took place in February 2003. The two year swap is part of Ameritrans plan to lower its borrowing costs. Ameritrans' bank approved the plan to proceed with replacing a $15 million swap which expires in June 2003. Ameritrans plans to complete three tranches totalling $15 million, ultimately lowering the total cost of funds on this $15 million of debt financing.

Gary C. Granoff, Ameritrans' president said, "We are pleased to have completed this transaction. The environment of historically low interest rates creates a unique opportunity for Ameritrans to reduce our interest expense, and to fix a large portion of those costs for a longer period of time. The first $5 million tranche was completed in February with an effective interest rate of 3.56%. This represents a significant reduction versus the 6.45% rate currently in place on the $15 million swap which expires in June. We hope to complete two additional $5 million tranches in April and June respectively, depending on market conditions at that time, in effect, replacing the expiring $15 million swap."

Granoff added that the overall interest costs on the completed $5 million swap would rise by about 65 basis points until the expiration of the current $15 million swap. "Thereafter, overall interest costs on this layer of debt financing should be materially lower."

Ameritrans Capital Corporation is a specialty finance company engaged in making loans to and investments in small businesses. Ameritrans' wholly owned subsidiary Elk Associates Funding Corporation, was 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.