Ameritrans First Quarter Investment Income Rises.

Business Editors/Banking Writers

NEW YORK--(BUSINESS WIRE)--November 16, 2000

Ameritrans Capital Corporation (Nasdaq:AMTC) announced today that the company's investment income was $1.6 million for the three months ended September 30, 2000, an increase of nearly 7% over the investment income of $1.5 million for the three months ended September 30, 1999. Net income for the period was $87,751, a decrease of 74% from the net income of $336,724 for the prior comparable period. Diluted earnings per share for the period were $0.05, a 74% decrease from the $0.19 diluted earnings per share recorded for the comparable prior period.

The company's loan portfolio grew from $53.7 million as of September 30, 1999 to $57.6 million as of September 30, 2000. The increase in the company's investment income is mainly due to the 7% increase in the size of the loan portfolio.

According to Ameritrans chairman and chief executive officer Gary C. Granoff, "The reduction in net income was attributable primarily to a $192,000 increase in our allowance for loan losses."

He added, "Ameritrans had a $235,315 increase in interest expenses from the prior comparable period, which was attributable to increased bank borrowings, and higher interest rates. This was partially offset by income from our interest rate swap transaction of approximately $42,000 during the quarter."

Granoff said that the company continues to grow its portfolio in a prudent manner as management works toward consummating its merger with Medallion Financial Corporation.

The Company also announced that it amended its merger agreement with Medallion Financial Corp., pursuant to which Ameritrans and Medallion agreed (i) that the average closing sale price per share of Medallion's common stock on the NASDAQ Market during the Determination Period (as defined in the Merger Agreement) at which either party shall have the right to terminate the Merger Agreement shall be reduced from $15.00 to $14.00 per share; (ii) that the purchase price (i.e., number of Medallion shares) to be paid to the Company's shareholders if the average price per share of Medallion common stock during the Determination Period is between $14.00 and $14.99 shall be calculated by dividing $8.01 by such average closing price of the Medallion common stock; (iii) to the modification of certain representations by the company; (iv) that the date by which Medallion shall have obtained either approval of the Company's lenders to the merger or shall have obtained financing suitable to it shall be extended from November 1, 2000, to November 30, 2000; and (v) the date by which the merger must be completed shall be extended from December 31, 2000, to January 31, 2001, unless the only condition remaining to be satisfied under the Agreement is obtaining SBA approval, in which event, such outside date shall be February 23, 2001. The amendment to the merger agreement is included in the Company's Form 8-K which is being filed with the Securities and Exchange Commission. The Company also stated that it is presently in discussions with Medallion regarding a further extension of the date by which Medallion shall have obtained either the consent of the Company's lenders or financing satisfactory to Medallion.

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 has been licensed by the United States Small Business Administration (SBA) as a Small Business Investment Company since 1980. The company maintains its offices at 747 Third Avenue, 4th Floor, New York, NY 10017.

This announcement contains certain 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.

            AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

        For the Three Months Ended September 30, 2000 and 1999

                                                 Three Months Ended
                                                    September 30,
                                                  2000         1999
                                                  ----         ----
INVESTMENT INCOME
Interest on loans receivable                  $1,548,345    $1,404,270
Fees and other income                             75,983       114,561
                                              ----------    ----------
TOTAL INVESTMENT INCOME                        1,624,328     1,518,831
                                              ----------    ----------

OPERATING EXPENSES
Interest                                         962,499       727,184
Salaries and employee benefits                   141,494       145,009
Legal fees                                        38,291        94,968
Miscellaneous administrative expenses            183,066       196,676
Loss on assets acquired in
  satisfaction of loans, net                      14,588            59
Directors' fee                                       250        15,000
Bad debt expense                                 194,298            --
                                              ----------    ----------
TOTAL OPERATING EXPENSES                       1,534,486     1,178,896
                                              ----------    ----------

OPERATING INCOME                                  89,842       339,935

  NET INCOME BEFORE INCOME TAXES                  89,842       339,935

INCOME TAXES                                       2,091         3,211
                                              ----------    ----------

  NET INCOME                                  $   87,751    $  336,724
                                              ==========    ==========

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic                                          1,745,600     1,745,600
                                              ==========    ==========
Diluted                                        1,750,684     1,749,894
                                              ==========    ==========

NET INCOME PER COMMON SHARE
Basic                                         $   0.0503    $   0.1929
                                              ==========    ==========
Diluted                                       $   0.0501    $   0.1924
                                              ==========    ==========





            AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS

           September 30, 2000 (Unaudited) and June 30, 2000

                                        Sept. 30, 2000   June 30, 2000

    ASSETS

Loans receivable                         $ 57,633,533    $ 56,806,579
Less: allowance for loan losses              (572,000)       (380,000)
                                        --------------  --------------
                                           57,061,533      56,426,579

Cash and cash equivalents                     504,647         376,507
Accrued interest receivable                   796,487         928,765
Assets acquired in satisfaction
 of loans                                     666,555         609,106
Receivable from debtors on sales
 of assets acquired in satisfaction
 of loans                                     736,736         743,954
Equity securities                             670,762         631,974
Furniture, fixtures and leasehold
 improvements, net                            102,556         110,019
Prepaid expenses and other assets             508,329         467,720
                                        --------------  --------------
TOTAL ASSETS                             $ 61,047,605    $ 60,294,624
                                        ==============  ==============

    LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Debentures payable to SBA                $  8,880,000    $  8,880,000
Notes payable, banks                       38,500,000      37,800,000
Accrued expenses and other
 liabilities                                  405,697         365,328
Accrued interest payable                      290,131         365,270
                                        --------------  --------------
TOTAL LIABILITIES                        $ 48,075,828    $ 47,410,598
                                        --------------  --------------

COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY

Common stock, $.0001 par value:
 5,000,000 shares authorized;
 1,745,600 shares issued and
 outstanding                                      175             175
Additional paid-in capital                 13,471,474      13,471,474
Accumulated deficit                          (637,306)       (725,057)
Accumulated other comprehensive
 income                                       137,434         137,434
                                        --------------  --------------
TOTAL STOCKHOLDERS' EQUITY                 12,971,777      12,884,026
                                        --------------  --------------
TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY                    $ 61,047,605    $ 60,294,624
                                        ==============  ==============