Ameritrans Reports Fourth Quarter and Fiscal Year June 30, 2007 Results.

NEW YORK -- Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) today reported financial results for the fiscal year and quarter ended June 30, 2007. For the quarter ended June 30, 2007, investment income was $1.89 million compared to $1.36 million during the prior comparable period ended June 30, 2006. Investment income for the quarter ended June 30, 2007 included interest income, fee income, equity in loss of investee and leasing income totaling $1.41 million and net gain on the sale of taxicab medallions of $483,981 totaling $1.89 million.

The Company's investment income increased $1,076,705 or 21% to $6,305,887 as compared to the prior year ended June 30, 2006. The increase is primarily due to increases in interest income of $597,929, other fees of $145,582, partially offset by a decrease in leasing income of $96,366, which was generated by the leasing activities of Elk's subsidiaries. The Company also recognized a significant net gain on the sale of medallions of $512,354, partially offset by losses on an equity investment of $145,307 which was reported in the current year. The increase in interest income is primarily the result of an increase of $7,841,716 in the net loan portfolio at June 30, 2007, as compared to June 30, 2006, due to new loan receivable fundings in excess of payoffs and settlements of loans receivable, as well as the impact of higher average rates charged on new or modified loans. The decrease in leasing income was primarily due to sales of medallions and automobiles that were previously leased.

Net Income for the fiscal year ended June 30, 2007 was $33,275 as compared to a Net Loss for the fiscal year ended June 30, 2006 of $218,680. Net Income is calculated before payment of dividends on preferred stock of $337,500 in each the aforementioned fiscal years.

The Company's loan portfolio at June 30, 2007 was $57.4 million versus $49.5 million at June 30, 2006.

At June 30, 2007, book value per common share was approximately $5.32.

Gary C. Granoff, Chairman and CEO of Ameritrans, stated, "The fiscal year ended June 30, 2007 was a transition year for the Company. During the year we deployed the proceeds from our 2006 capital raise. The increase in loans and investments which are not subject to SBA Regulations has begun to contribute to our investment income. Our earnings this past fiscal year were negatively impacted by certain non-recurring expenses related to personnel and certain non-recurring professional costs related to Sarbanes-Oxley compliance. The Chicago taxi portfolio has continued to improve. Market conditions in Chicago have strengthened significantly with prices increasing for medallions while defaults are at their lowest level over the past four years. We are looking forward to growing our portfolio with expanded opportunities during the fiscal year ending in June, 2008."

Michael Feinsod, President of Ameritrans, added, "During the fourth quarter we expanded our loan portfolio with the addition of middle market senior secured corporate loans. Approximately half of our year-over-year portfolio growth was generated in this new area. Generally, these are loans to significantly larger companies than those made to the Company's historical borrowers. The middle market secured loan market is significantly larger than the markets on which the Company has historically focused. We continue to investigate additional opportunities in this asset class. We believe this strategy, utilizing the unique Ameritrans/Elk corporate structure, has the potential to generate an overall loan portfolio with excellent growth potential, credit-quality and predictable income."

Ameritrans Capital Corporation is an internally managed, closed-end investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended. Ameritrans originates, structures and manages a portfolio of medallion loans, secured business loans and selected equity securities. Ameritrans' wholly owned subsidiary Elk Associates Funding Corporation is 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.

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