Exhibit 99.1


March 19, 2004

Dear Shareholders

We are writing to announce the following developments:

New Leadership

Effective March 19, 2004 Susan Fox resigned as President, Chief Executive
Officer, and Director of Primecore Mortgage Trust. The internalization of
management into Primecore Mortgage Trust is being completed and we expect that
it will streamline business operations, and provide greater visibility and
accountability to shareholders and the Board of Directors.

Michael Rider, Chief Financial Officer and a veteran of our Company and the real
estate industry, has been named President and Chief Executive Officer. In
addition to Mr. Rider, Eric Hanke has been named Vice President of Business
Development. Mike and Eric together with Ben Hamburg, our General Counsel, will
lead the management team. Our Board of Directors, led by Bob Puette, Chairman,
will continue to be actively involved in implementing our business plan to
rebuild the company and return it to profitability and growth.

Stock Repurchase Price

We have revised the net realizable value of the portfolio, calculated for
purposes of repurchases from $4.68 to $4.01. The decrease primarily reflects our
reevaluation of several high-end properties in the portfolio based on the most
recently available information. Further discussion of this decrease along with
detailed financial results for 2003 will be included in the Company's Form 10K
filing with the Securities and Exchange Commission, which we expect to file on
or before March 30, 2004. This document will be available online at
http://www.sec.gov and we will provide it to any shareholder upon request.

Business Plan

Our management team has adopted a plan that we believe will return us to growth
and profitability, and increase your return on investment in Primecore. We
invite you to join us in a conference call with our management team planned for
late April following the filing of our 10K. We will be sharing more details of
our business plan at that time. The date, time and dial-in information will be
provided to you in early April. In the interim, here are the highlights of our
plan:

        o We will focus on investments in housing priced closer to the median
          sale prices for the counties in which we lend.


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        o We will add new investment products, such as mezzanine and equity
          financing, to our product mix.
        o We intend to diversify the portfolio into other California
          metropolitan areas.
        o We plan to change the Company's name in order to better identify us as
          a residential development capital source.
        o We have formed a team focused on cultivating new partnerships designed
          to expand our pipeline of new business opportunities.
        o We will continue to provide liquidity to shareholders through our
          stock redemption policy.
        o Consistent with our drive to grow the business, we intend to increase
          the frequency of our communication and reporting to our shareholders.
          To ensure that management remains accessible and responsive to
          shareholders, Connie Paris, our Investor Relations Manager, will serve
          as your main contact in Investor Relations.

Recent Investments

We are pleased to announce the following recent investments:

       o We approved and have begun funding a new construction loan for the
         Baywood project, a 17-unit condominium project in downtown San Mateo.

       o We are developing a 72-unit condominium project in San Jose that has
         been favorably reviewed by the City of San Jose. We determined that
         completing the project, which we obtained after the borrower's default,
         rather than selling the project in its undeveloped state, would
         maximize the value to shareholders.

During this period of transition, we plan to continue to provide our
shareholders with accurate and current information on a timely basis. We believe
that with more communications, you will have improved visibility into our
business and your investment. Should you have any questions about the
information above, please contact Connie Paris at (650) 328-3060.


Sincerely,



Michael Rider                                         Robert Puette
Chief Executive Officer                               Chairman of the Board


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