For Immediate Release

  FROM:
  Ameritrans Capital Corporation
  For more information Contact:
  Gary Granoff
  (800) 214-1047


  AMERITRANS ANNOUNCES SPECIAL MEETING OF SHAREHOLDERS

             New York, NY, June 27, 2005 - Ameritrans Capital
  Corporation (NASDAQ: AMTC, AMTCP)

	New York, NY, June 27, 2005-Ameritrans Capital Corporation
  (NASDQ:AMTC:AMTCP) today announced it has scheduled a Special Meeting
  of Shareholders to be held Thursday, July 21, 2005 at 10:00 a.m., at the
  law offices of Stursberg & Veith in New York City, to vote on a proposal
  to make a private offering of the Company's common stock, $0001 par value,
  at a fixed purchase price of no less than book value as of July 18, 2005 to
  a limited number of "accredited investors," as that term is defined in Rule
  506 of Regulation D, promulgated  under the Securities Act of 1933, as
  amended. For every four (4) shares of common stock purchased, the Company
  will issue to the investor one (1) warrant, exercisable for five (5) years
  from the date of issuance, to purchase one (1) share of common stock at
  an exercise price to be fixed at a specified dollar amount that is no less
  than book value and no more than 110% of book value. The securities sold
  in this offering will not be and have not been registered with the
  Securities Exchange Commission and may not be offered or sold in the
  United States absent registration or an applicable exemption from
  registration requirements. Definitive proxy materials were mailed to
  shareholders on or about June 27, 2005.

	Commenting on the proposal, Gary C. Granoff, the Company's President
  said,"The Board of Directors and Management believe that raising additional
  capital at this time will allow the Company to expand its investment
  portfolio and diversify the Company's investments beyond the SBA-regulated
  loans and investments of our subsidiary, Elk Associates Funding Corporation.
  This diversification will benefit both the Company and its Shareholders by
  providing the Company with flexibility to participate in a wide range of
  investment opportunities."

	The Company filed a definitive proxy statement with the SEC on June
  27,2005. Investors and security holders are urged to read these materials and
  any other relevant materials filed by Ameritrans with the SEC because they
  contain important information about Ameritrans and the proposal to be
  presented at the Special Meeting of Shareholders. Investors and security
  holders may obtain a free copy of these materials when they become available,
  as well as other materials filed with the SEC concerning the Company at the
  SEC's website,http://www.sec.gov.


	Ameritrans Capital Corporation is a specialty finance
  company engaged in making loans to and investments in small
  businesses.  Ameritrans' wholly owned subsidiary Elk Associates
  Funding Corporation was licensed by the United States Small
  Business Administration as a Small Business Investment Company
  (SBIC) in 1980.  The Company maintains its offices at 747 Third
  Avenue, 4th Floor, New York, New York 10017.

             THIS ANNOUNCEMENT CONTAINS FORWARD-LOOKING STATEMENTS
  WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM
  ACT OF 1995.  SUCH STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND
  UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
  MATERIALLY FROM THOSE PRESENTLY ANTICIPATED OR PROJECTED.
  AMERITRANS CAPITAL CORPORATION CAUTIONS INVESTORS NOT TO PLACE
  UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY
  AS TO MANAGEMENT'S EXPECTATIONS ON THIS DATE.