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                                                                    EXHIBIT 99.1



January 18, 2001

                              AMRESCO CAPITAL TRUST
             ANNOUNCES SALE OF COMMERCIAL MORTGAGE-BACKED SECURITIES

         DALLAS - AMRESCO Capital Trust (Nasdaq: AMCT) announced today that it
has completed the sale of its remaining CMBS holdings. The company's three
commercial mortgage-backed securities were sold on January 18, 2001 at a net
sales price of $16.5 million. Following the sale of these securities, the
company's investment portfolio is now comprised of five mortgage loans and one
equity investment in real estate.

         As previously communicated, the company is liquidating its assets under
a plan of liquidation and dissolution. Shareholders approved the liquidation and
dissolution of the company on September 26, 2000.

         AMRESCO Capital Trust specializes in providing senior and subordinated
structured financing to real estate owners and developers. For more information
about AMRESCO Capital Trust, please visit the web site at www.amrescoct.com.

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CONTACT:
Tom Lewis      investorct@amresco.com
(214) 953-7820