Fog Cutter Capital Group Inc. Reports Additional Real Estate Sale by Bourne End Subsidiary.

Business Editors/Real Estate Writers

PORTLAND, Ore.--(BUSINESS WIRE)--Dec. 1, 2003

Fog Cutter Capital Group Inc. (Nasdaq:FCCG), reports that Bourne End Properties PLC ("Bourne End") has sold the Bridgewater Retail Park, a 97,000 square foot shopping center located in Bridgewater, England.

The sales price for the Bridgewater property was approximately GBP 13.8 million ($23.5 million). Fog Cutter will recognize a pretax gain on the sale of approximately $1.3 million. This is in addition to the approximate $3.5 million pretax gain recognized by the Company in October from the sale of another Bourne End property.

In December, 2000, Fog Cutter Capital Group organized and led a group of investors to purchase all of the outstanding capital stock of Bourne End, a specialist investor in retail property. The Company made its investment through its wholly owned subsidiary, BEP Islands Limited, along with partners Merrill Lynch (Jersey) Holdings Limited (a subsidiary of Merrill Lynch & Co., Inc.) and Greenbau Estuary Limited (an affiliate of Catalyst Capital LLP, formerly known as The Greenwich Group International). At the time of the acquisition, Bourne End had approximately GBP 169.6 million ($245.1 million) of assets and GBP 123.1 million ($177.9 million) of debt. The real estate assets consisted of 1.7 million square feet in fifteen shopping centers.

Bourne End has now sold thirteen of its fifteen properties since the acquisition by Fog Cutter and its partners. To date, Fog Cutter's share of the after tax earnings from Bourne End has been approximately $4.6 million. The sales have been consistent with the group's strategy to reposition each of the centers, including new capital expenditures on existing space and new development on excess or adjoining land, with the goal of reselling the properties. Based on square footage, the sales to date represent 77% of the original Bourne End portfolio and are in line with the acquiring group's business plan. Bourne End currently owns two remaining town shopping centers located in England. The remaining centers range in size from 74,000 square feet to 330,000 square feet.

The Bridgewater Retail Park serves the city of Bridgewater, which is 35 miles south of Bristol in the south west of England. The center provides 97,000 square feet of retail space, comprised of nine retail units.

Fog Cutter Capital Group Inc. focuses on investing, structuring and managing a wide range of financial assets, including the acquisition of debt or equity positions in companies requiring assistance in restructuring their operations; investments in mortgage-backed securities and other real estate related assets; provision of corporate mezzanine financing and other similar investments. The Company invests where its expertise in intensive asset management, credit analysis and financial structuring can create value and provide an appropriate risk-adjusted rate of return. The Company maintains a flexible approach with respect to the nature of its investments, seeking to take advantage of opportunities as they arise or are developed.

Forward Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements. All of the statements contained in this release, which are not identified as historical, should be considered forward-looking. In connection with certain forward-looking statements contained in this release and those that may be made in the future by or on behalf of the company which are identified as forward-looking, the company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. Such factors include but are not limited to, the real estate market, the specialty retail market , the availability of financing, interest rates, and European markets. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized or that actual results will not be significantly higher or lower. The forward-looking statements have not been audited by, examined by, or subjected to agreed-upon procedures by independent accountants, and no third party has independently verified or reviewed such statements. Readers of this release should consider these facts in evaluating the information contained herein. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation by the company or any other person that the forward-looking statements contained in this release will be achieved. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.