Anthracite Capital Files First Quarter Form 10-Q; Revises Timing of the One-time Charge for the Series B Preferred Stock Redemption.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 11, 2004

Anthracite Capital, Inc. (NYSE: AHR) (the "Company" or "Anthracite") yesterday filed its March 31, 2004 Form 10-Q with the Securities and Exchange Commission which reflects a change in the timing of the Company's one-time charge of $10,508,000 for the Series B Preferred Stock redemption from the first quarter of 2004 to the second quarter of 2004, increasing first quarter of 2004 net income available to common stockholders by $0.21 per share. The Company will take a one-time charge in the second quarter of $10,508,000 for the Series B Preferred Stock redemption. This revision resulted from further consultations with the Company's independent accountants, Deloitte & Touche LLP. The Company's Operating Earnings for the first quarter of 2004 of $0.28 per share were not affected.

As a result, for the three months ended March 31, 2004, the Company's net income available to common stockholders per share is $9,843,000 or $0.20 per share, versus a net loss to common stockholders of $665,000, or $0.01 per share, as previously reported. For additional information concerning this revision please refer to the Company's Form 10-Q filed Monday, May 10, 2004 with the Securities and Exchange Commission.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "potential," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. Anthracite cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and Anthracite assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in Anthracite's Securities and Exchange Commission (the "SEC") reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the value of Anthracite's assets; (3) the relative and absolute investment performance and operations of Anthracite's manager; (4) the impact of increased competition; (5) the impact of capital improvement projects; (6) the impact of future acquisitions or divestitures; (7) the unfavorable resolution of legal proceedings; (8) the extent and timing of any share repurchases; (9) the impact, extent and timing of technological changes and the adequacy of intellectual property protection; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to Anthracite, BlackRock or PNC; (11) terrorist activities and international hostilities, which may adversely affect the general economy, real estate, financial and capital markets, specific industries, and Anthracite and BlackRock; (12) the ability of Anthracite's manager to attract and retain highly talented professionals; (13) fluctuations in foreign currency exchange rates; and (14) the impact of changes to tax legislation and, generally, the tax position of the company.

Anthracite's Annual Report on Form 10-K for the year ended December 31, 2003 and Anthracite's subsequent reports filed with the SEC, accessible on the SEC's website at www.sec.gov, identify additional factors that can affect forward-looking statements.

To learn more about Anthracite, visit our website at www.anthracitecapital.com.