Anthracite Capital To Redeem 10% Series B Preferred Stock With Proceeds from Recent Debt Issuance; Reducing Cost of Capital.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 6, 2004

Anthracite Capital, Inc. (NYSE: AHR) ("Anthracite" or the "Company") today announced that on March 31, 2004 it decided to redeem its 10% Cumulative Convertible Series B preferred stock par value $0.001 per share (the "Series B Preferred"). Notice of the redemption was sent to shareholders of the Series B Preferred on April 6, 2004 for a scheduled redemption date of May 6, 2004. The Series B Preferred carries a 10% coupon, and the annual preferred stock cash dividend payable on the Series B Preferred equates to $0.087 per common share.

The Company recently issued $372 million of secured debt through a collateralized debt offering at a weighted average cost of funds of 5.0%. Part of the net proceeds from this transaction will be used by the Company to redeem the Series B Preferred. The Company expects the savings from this redemption to increase its income available to common stockholders commencing after the redemption date in the second quarter of 2004.

The Series B Preferred was issued pursuant to the acquisition of CORE Cap, Inc. in May of 2000. The stock was originally issued at a discount of $5.98 per share to its liquidation value of $25 per share. The total amount of that discount, approximately $10.5 million, or $0.21 per common share, is expected to be reported in the first quarter of 2004 as a reduction in net income available to common stockholders. The Company expects to report the reduction similar to the way dividends on preferred stock are reported.

In addition, the Company announced that it closed on over $127 million of market value of high yield commercial real estate assets at the end of the first quarter.

About Anthracite

Anthracite Capital, Inc. (NYSE: AHR) is a specialty finance company focused on investments in high yield real estate loans and related securities. Anthracite is managed by BlackRock Financial Management, Inc., a subsidiary of New York-based BlackRock, Inc. (NYSE: BLK), one of the largest publicly traded investment management firms in the United States with approximately $309 billion of assets under management at December 31, 2003. BlackRock is majority-owned by The PNC Financial Services Group, Inc. (NYSE:PNC) and by BlackRock employees.

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; (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, 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; and (13) fluctuations in foreign currency exchange rates.

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.