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, July 22, 2005-Ameritrans Capital Corporation
  (NASDQ:AMTC:AMTCP) today announced that at Special Meeting
  of Shareholders held Thursday, July 21, 2005  the shareholders of the Company
  approved the private offering of the Company's common stock $.0001 par value,
  at a fixed purchase price of no less than book value 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. Additionally, 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
  110% of the purchase price of the shares. The Company proposed to raise
  aggregate gross proceeds between a minimum of $3,000,000 and a maximum of
  $10,000,000.  The securities sold in this offering 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. The Company anticipates commencement of the
  offering in approximately two weeks.

	Commenting on the shareholder approval, Gary C. Granoff, the Company's
  President said,"The Board of Directors and Management are pleased about the
  approval of the offering.  We 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."

	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.