Anthracite Capital Reports Stock Buyback Activity, Additional Investments.

NEW YORK--(BUSINESS WIRE)--August 26, 1998--Anthracite Capital, Inc. (Anthracite) (NYSE: AHR) today reported that to date it had repurchased 1,284,200 shares of its common stock at an average price of $11.55 per share pursuant to the authorization of its Board of Directors on July 15, 1998 to repurchase up to 10% of its common stock outstanding. An additional 852,319 shares are currently authorized for potential repurchase in the future.

The antidilutive effect of the shares repurchased to date has increased Anthracite's book value per share by approximately $0.15. Anthracite will continue to devote capital to acquiring real estate investments or repurchasing shares, depending on the relative value to shareholders.

Anthracite also announced that it had negotiated and anticipates closing, subject to satisfactory completion of due diligence, approximately $125 million in high-yielding real estate investments prior to the end of the third quarter. These investments consist of mezzanine loans and subordinated commercial mortgage-backed securities. "We are on track to exceed the objectives of our original business plan and are enthusiastic about the growing opportunities for deploying our shareholders' capital," said Hugh R. Frater, President and CEO of Anthracite.

In addition, Anthracite reported that since July 23, 1998 its officers and directors and the officers and directors of BlackRock, Inc. had acquired 63,300 shares of Anthracite's common stock in open market purchases at an average price of approximately $12.17 per share. These purchases bring the total holdings of Anthracite's common stock by its officers and directors and the officers and directors of BlackRock, Inc. to 133,434 shares.

Anthracite is a specialty finance company taxed as a REIT and externally managed by BlackRock, Inc., a New York City based investment manager with over $119 billion in global assets under management. BlackRock's parent, PNC Bank in Pittsburgh, originates commercial, multifamily and residential real estate loans and services over $27 billion in commercial mortgage loans for third parties through its Midland Loan Services subsidiary.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Anthracite's actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those detailed from time to time in Anthracite's reports and filings with the Securities and Exchange Commission.

CONTACT: Anthracite Capital, Inc., New York

Hugh Frater

President and Chief Executive Officer

212-754-5535

or

Richard Shea

Chief Operating Officer and Chief Financial Officer

212-754-5579

http://ahr.blackrock.com.