EXHIBIT 99.2

FOR IMMEDIATE RELEASE

          FOG CUTTER CAPITAL GROUP INC. ADOPTS STOCKHOLDER RIGHTS PLAN.

PORTLAND, Oregon-- October 18, 2002 - Fog Cutter Capital Group Inc. (Nasdaq:
FCCG), a diversified investment group specializing in mortgage and real estate
related assets, today announced that its Board of Directors has adopted a
Stockholder Rights Plan under which stock purchase rights will be distributed as
a dividend to holders of its common stock at the rate of one right for each
share of common stock held of record as of the close of business on October 28,
2002.

"The Stockholder Rights Plan is being adopted as a means of protecting the
potential tax benefits of the Company's net operating loss carry forward
("NOL")," said Andrew A. Wiederhorn, the Chairman of the Board and Chief
Executive Officer of the Company. "Under Federal tax rules, the NOL will be
limited if the Company undergoes a significant change in ownership. The Plan
addresses the Board's duty to protect the best interests of the Company and its
stockholders by diluting any new 5% holder, or any existing 5% holder that
increases its stake by 1% or more, thereby preserving the Company's NOL." If,
subject to certain exceptions, any person or group commences a tender or
exchange offer to purchase 5 percent or more of the Company's Common Stock, each
right not owned by such person or group will entitle its holder to purchase, at
the right's current exercise price, shares of Common Stock having a value of
twice the right's current exercise price. If, subject to certain exceptions, any
person or group acquires 5% or more, or any existing 5% holder increases its
stake by 1% or more, of the Company's Common Stock (an "Acquiring Person"), each
right not owned by such person or group will automatically be exercised and
entitle its holder to receive one share of Common Stock per right (or a lesser
ratio as determined by the Board of Directors, if the Corporation does not have
sufficient authorized and unreserved shares) in lieu of paying the purchase
price. This right to purchase Common Stock at a discount will not be triggered
by a person or group's acquisition of 5% or more of the Common Stock pursuant to
a tender or exchange offer (or other securities offering by the Company) which
is for all outstanding shares at a price and on terms that the Board of
Directors determines (prior to acquisition) to be adequate and in the best
interests of the Company and its stockholders.

In addition, if, subject to certain exceptions, the Company is acquired by
another corporation in a merger or consolidation or more than 50 percent of the
assets or earning power of the Company is acquired, each right not owned by the
acquiror or affiliates will entitle its holder to purchase, at the right's
current exercise price, common stock of the acquiror having a value of twice the
right's current exercise price. This right will not be triggered, however, if
such acquisition is by a person or group which acquired the Company's Common
Stock at a price and on terms that the Board of Directors determines (prior to
acquisition) to be adequate and in the best interests of the Company and its
stockholders.

The rights will expire in the year 2012. The rights dividend will not be taxable
to the Company's stockholders.

The Company may redeem all of the rights, at the option of the Board of
Directors, at a redemption price of $.001 per right or by the issuance of shares
of Common Stock then equivalent to $.001 per right, at any time prior to any
person becoming an Acquiring Person.





Founded in 1997, Fog Cutter Capital Group Inc. focuses on investing, structuring
and managing real estate-related assets, including the acquisition of companies
engaged in real estate investment activities, mortgage-backed securities,
mezzanine real estate loans and other real estate related assets. The Company
invests where its expertise in intensive asset management, mortgage and real
estate credit analysis and financial structuring can create value. Many of these
investments, particularly in corporate acquisitions, are acquired in conjunction
with partners.

The Company seeks to invest directly or indirectly in real estate-related assets
that provide an appropriate risk-adjusted rate of return and the opportunity for
capital gains. 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 availability
of real estate assets at acceptable prices, 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.