American Mortgage Acceptance Company Reports Second Quarter Financial Results for 2006

"AMAC had a very successful second quarter," said Marc D.Schnitzer, President of AMAC. "The balance sheet lending program thatwe launched at the beginning of 2006 has been well received, and as aresult, our loan originations for the first six months of the yeartotaled $151.7 million, representing a 135.0% increase over ourorigination activity for the first six months of 2005. We havecontinued to diversify our lending programs to include other assetclasses beyond our historical focus on multifamily, and approximately$43.5 million of the loans that we originated in the first six monthsof 2006 were for office and retail properties. We are very optimisticthat AMAC will continue to execute its business plan and meet itsgoals for the year."

Financial Highlights

AMAC reported total revenues of approximately $9.6 million for thethree months ended June 30, 2006, representing an increase of 22.0% ascompared to revenues of approximately $7.9 million for the threemonths ended June 30, 2005. AMAC's total revenues for the six monthsended June 30, 2006 were approximately $17.7 million, representing anincrease of approximately 21.2% as compared to revenues ofapproximately $14.6 million for the six months ended June 30, 2005.

The table below summarizes AMAC's net income and Funds fromOperations ("FFO") for the three and six months ended June 30, 2006and 2005. AMAC's financial results for the three and six months endedJune 30, 2006 include a significant amount of income recognized fromthe change in the fair value of derivative instruments and certainassociated costs. Therefore, the Company is reporting net income andFFO both excluding ("adjusted") and including these changes and costs.
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
(In thousands,
except per share
data) 2006 2005 % change 2006 2005 % change
------ ------ -------- ------ ------ --------

Net Income $5,215 $3,069 69.9% $7,384 $5,896 25.2%
Adjusted Net
Income $3,393 $3,069 10.6% $5,420 $5,896 (8.1%)
Funds from
Operations(a) $5,665 $3,405 66.4% $8,284 $6,598 25.6%
Adjusted Funds
from Operations(a) $3,843 $3,405 12.9% $6,320 $6,598 (4.2%)

Per Share Data
(diluted):
Net Income $0.63 $0.37 70.3% $0.89 $0.71 25.4%
Adjusted Net
Income $0.41 $0.37 10.8% $0.65 $0.71 (8.5%)
Funds from
Operations(a) $0.68 $0.41 65.9% $1.00 $0.79 26.6%
Adjusted Funds
from
Operations(a) $0.46 $0.41 12.2% $0.76 $0.79 (3.8%)

(a) See footnote (1) to the Selected Financial Data for a discussion
of Funds from Operations.

AMAC's present quarterly dividend on an annualized basis is $1.60per share, representing an approximate 10.3% yield on the $15.49 pershare closing price on August 7, 2006.

Investment Activity

As previously announced in March of this year, we formed AMAC CDOFunding I ("AMAC CDO") for the purpose of managing our first plannedCollateralized Debt Obligation ("CDO") securitization. In the secondquarter of 2006, AMAC originated ten first mortgage loans andsubordinated notes, totaling approximately $151.7 million for the CDOsecuritization. These investments included first mortgage andmezzanine loans secured by multifamily, office and anchored retailproperties.

Management Conference Call

Management will conduct a conference call today to review theCompany's second quarter financial results for the period ended June30, 2006. The conference call is scheduled for 11:00 a.m. EasternTime. Callers will be invited to ask questions. Investors, brokers,analysts, and shareholders wishing to participate should call (800)946-0713. A webcast of the presentation will be available live and canbe accessed through the Company's website,http://www.americanmortgageco.com. To listen to the presentation viawebcast, please go to the website's "Investor Relations" section atleast 15 minutes prior to the start of the presentation. Forinterested individuals unable to join the conference call, a replay ofthe call will be available through Saturday, August 12, 2006 at (888)203-1112 (Passcode 4068717) or on our website,http://www.americanmortgageco.com, through Tuesday, September 5, 2006.

Supplemental Financial Information

For more detailed financial information, please access theSupplemental Financial Package, which is available in the InvestorRelations section of the AMAC website athttp://www.americanmortgageco.com.

About the Company

AMAC is a real estate investment trust that specializes inmultifamily and commercial real estate finance. AMAC originates andacquires first mortgage, mezzanine and bridge loans secured byproperties throughout the United States. For more information, pleasevisit our website at http://www.americanmortgageco.com or contact theInvestor Relations Department directly at (800) 831-4826.
AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)

============ ============
June 30, December 31,
2006 2005
------------ ------------
(Unaudited)
Financial Position

Total assets $517,150 $400,723
============ ============

Repurchase facilities payable $184,253 $209,101
============ ============

Warehouse facility payable $ - $ 4,070
============ ============

CDO repurchase facility $127,644 $ -
============ ============

Line of credit - related party $ 27,042 $ -
============ ============

Mortgages payable on real estate owned $ 40,220 $ 40,487
============ ============

Preferred shares of subsidiary (subject to
mandatory repurchase) $ 25,000 $ 25,000
============ ============

Total liabilities $411,985 $286,540
============ ============

Total shareholders' equity $105,165 $114,183
============ ============
=======================================
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------------------
2006 2005 2006 2005
---------------------------------------
(Unaudited)
Operations

Total revenues $ 9,587 $ 7,860 $17,651 $14,563
======= ======= ======= =======
Net income $ 5,215 $ 3,069 $ 7,384 $ 5,896
======= ======= ======= =======
Adjusted net income(1) $ 3,393 $ 3,069 $ 5,420 $ 5,896
======= ======= ======= =======
Net income per share
(basic and diluted) $ 0.63 $ 0.37 $ 0.89 $ 0.71
======= ======= ======= =======
Adjusted net income per share
(basic and diluted)(1) $ 0.41 $ 0.37 $ 0.65 $ 0.71
======= ======= ======= =======
Weighted average shares
outstanding
Basic 8,304 8,311 8,304 8,324
======= ======= ======= =======
Diluted 8,304 8,311 8,305 8,327
======= ======= ======= =======


(1) Excludes change in fair value of derivative instruments and
certain associated costs.
AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)

Funds from Operations ("FFO")(1), as calculated in accordance with the
National Association of Real Estate Investment Trusts ("NAREIT")
definition, for the three and six months ended June 30, 2006 and 2005,
is summarized in the following table:

=========================================
Three Months Ended Six Months Ended
June 30, June 30,
-----------------------------------------
2006 2005 2006 2005
-----------------------------------------

Net Income $ 5,215 $ 3,069 $ 7,384 $ 5,896

Depreciation of real
property 450 336 900 702
---------- --------- ---------- ---------

FFO $ 5,665 $ 3,405 $ 8,284 $ 6,598
========== ========= ========== =========

Adjusted FFO(2) $ 3,843 $ 3,405 $ 6,320 $ 6,598
========== ========= ========== =========

Cash flows from operating
activities $ 3,578 $ 2,843 $ 5,232 $ 6,575
========== ========= ========== =========
Cash flows from investing
activities $ (130,507)$ (23,261)$ (130,274)$(56,709)
========== ========= ========== =========
Cash flows from financing
activities $ 129,943 $ 19,139 $ 117,520 $ 56,309
========== ========= ========== =========

FFO per share (basic and
diluted) $ 0.68 $ 0.41 $ 1.00 $ 0.79
========== ========= ========== =========
Adjusted FFO per share
(basic and diluted)(2) $ 0.46 $ 0.41 $ 0.76 $ 0.79
========== ========= ========== =========

Weighted average shares
outstanding
Basic 8,304 8,311 8,304 8,324
========== ========= ========== =========
Diluted 8,304 8,311 8,305 8,327
========== ========= ========== =========



(1) FFO represents net income or loss (computed in accordance with
generally accepted accounting principles ("GAAP")), excluding
gains (or losses) from sales of property, excluding depreciation
and amortization related to real property and including funds
from operations for unconsolidated joint ventures calculated on
the same basis. AMAC calculates FFO in accordance with the
NAREIT definition. FFO does not represent cash generated from
operating activities in accordance with GAAP and is not
necessarily indicative of cash available to fund cash needs. FFO
should not be considered as an alternative to net income as an
indicator of the Company's operating performance or as an
alternative to cash flows as a measure of liquidity. Management
considers FFO a supplemental measure of operating performance,
and, along with cash flows from operating activities, financing
activities, and investing activities, it provides investors with
an indication of the ability of the Company to incur and service
debt, to make capital expenditures, and to fund other cash needs.
Since not all companies calculate FFO in a similar fashion, our
calculation presented above may not be comparable to similarly
titled measures reported by other companies.

(2) Excludes change in fair value of derivative instruments and
certain associated costs.

Certain statements in this document may constitute forward-lookingstatements within the meaning of the "safe harbor" provisions of thePrivate Securities Litigation Reform Act of 1995. These statements arebased on management's current expectations and beliefs and are subjectto a number of factors and uncertainties that could cause actualresults to differ materially from those described in theforward-looking statements. These risks and uncertainties are detailedin AMAC's most recent Annual Report on Form 10-K and in its otherfilings with the Securities and Exchange Commission and include, amongothers, risks of investing in uninsured and non-investment grademortgage assets and subordinated Commercial Mortgage-Backed Securities("CMBS"); competition in acquiring desirable investments; interestrate fluctuations; risks associated with hedging transactions, whichcan limit gains and increase exposure to loss; risks associated withinvestments in real estate generally and the properties which securemany of our investments; general economic conditions, particularly asthey affect the value of our assets and the credit status of ourborrowers; dependence on our external Advisor for all servicesnecessary for our operations; conflicts which may arise among us andother entities affiliated with our Advisor which have similarinvestment policies to ours; risks associated with the repurchaseagreements we utilize to finance our investments and the availabilityof financing generally; and risks associated with our contemplated CDOtransactions, which include, but are not limited to, the inability toacquire eligible investments for a CDO issuance and the inability tofind suitable replacement investments in collateralized debtobligations with reinvestment periods. Such forward-looking statementsspeak only as of the date of this document. AMAC expressly disclaimsany obligation or undertaking to release publicly any updates orrevisions to any forward-looking statements contained herein toreflect any change in AMAC's expectations with regard thereto orchange in events, conditions, or circumstances on which any suchstatement is based.