AT THE COMPANY

Hande Tuney, Investor Relations

(800) 831-4826

AMERICAN MORTGAGE ACCEPTANCE COMPANY

REPORTS SECOND QUARTER FINANCIAL RESULTS FOR 2008

NEW YORK, NY – August 7, 2008 - American Mortgage Acceptance Company (“AMAC” or the “Company”) (AMEX: AMC) today announced financial results for the second quarter and six months ended June 30, 2008.

Financial Results

The table below summarizes AMAC’s revenues, net (loss) income, funds from operations (“FFO”) and adjusted FFO for the three and six months ended June 30, 2008 and 2007.

	ThreeMonths Ended June 30,					Six Months Ended June 30,
(In thousands, except per share data)	2008			2007		2008			2007
Revenues	$	9,811		$	15,312	$	20,495		$	27,813
Net (Loss) Income	$	(4,856	)	$	3,477	$	(33,832	)	$	8,641
Net (Loss) Income Available to Common Shareholders	$	(5,164	)	$	3,477	$	(34,448	)	$	8,641
FFO (1)	$	(4,856	)	$	3,477	$	(33,832	)	$	5,366
Adjusted FFO (1) (2)	$	(4,856	)	$	2,808	$	(33,832	)	$	4,727
Per Share Data (diluted):
Net (Loss) Income	$	(0.58	)	$	0.41	$	(4.01	)	$	1.03
Net (Loss) Income Available to
Common Shareholders	$	(0.61	)	$	0.41	$	(4.08	)	$	1.03
FFO (1)	$	(0.58	)	$	0.41	$	(4.01	)	$	0.64
Adjusted FFO (1) (2)	$	(0.58	)	$	0.33	$	(4.01	)	$	0.56

(1) See footnotes (1) and (3) to the Selected Financial Data for a discussion of FFO and adjusted FFO and a  reconciliation from GAAP net income.

(2) Adjusted to exclude the change in fair value of derivative instruments, net of certain associated costs.

AMAC’s operating results were impacted by impairments recorded for certain of our mortgage loans and the declines in the fair value of our Commercial Mortgage-Backed Securities (“CMBS”) investments totaling $4.1 million and $30.6 million for the three and six months ended June 30, 2008, respectively.

 During 2008, declines in the fair values of AMAC’s CMBS investments reduced the Company’s shareholders’ equity, whether the declines resulted in realized losses or not.  As the fair values have continued to decline beyond the December 31, 2007 levels, total shareholders’ equity was brought to a negative balance as of June 30, 2008.

“Negative market conditions severely impacted the entire mortgage market causing substantial declines in mortgage securities and mortgage loan prices. These volatile market conditions continue to impact the value of AMAC’s assets. In the second quarter of 2008, AMAC incurred additional losses from mark-to-market adjustments of certain investments and impairment charges on certain mortgage loans,” said Donald J. Meyer, Chief Executive Officer of AMAC. “We are exploring all strategic options to preserve the value of our Company.”

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About AMAC

AMAC is a real estate investment trust that specializes in originating and acquiring mortgage loans and other debt instruments secured by multifamily and commercial properties throughout the United States.  AMAC invests in mezzanine, construction and first mortgage loans, subordinated interests in first mortgage loans, bridge loans, subordinate commercial mortgage backed securities, and other real estate assets. For more information, please visit our website at http://www.americanmortgageco.com or contact the Corporate Communications Department directly at (800) 831-4826.

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AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES

SELECTED FINANCIAL DATA

(In thousands, except per share amounts)

	June 30, 2008				December 31, 2007
	(Unaudited)
ASSETS
Cash and cash equivalents		$	20,703			$	15,844
Restricted cash			5,028				8,783
Investments:
Mortgage loans receivable, net			464,822				529,644
Available-for-sale investments, at fair value:
CMBS			43,013				69,269
Mortgage revenue bonds			4,743				4,879
Accounts receivable			22,322				31,066
Deferred charges and other assets, net			6,499				6,914
Total assets		$	567,130			$	666,399
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY
Liabilities:
CDO notes payable		$	362,000			$	362,000
Repurchase facilities			71,939				136,385
Line of credit – related party			79,877				77,685
Preferred shares of subsidiary (subject to mandatory repurchase)			25,000				25,000
Interest rate derivatives			20,358				26,631
Accounts payable and accrued expenses			16,373				15,764
Due to Advisor and affiliates			3,455				2,000
Dividends payable			308				308
Total liabilities			579,310				645,773
Commitments and contingencies
Shareholders’ (deficit) equity:    7.25% Series A Cumulative Convertible Preferred Shares			15,905				15,905
Common shares of beneficial interest			892				885
Treasury shares of beneficial interest at par			(42	)			(42	)
Additional paid-in capital			128,125				128,087
Accumulated deficit			(139,404	)			(104,956	)
Accumulated other comprehensive loss			(17,656	)			(19,253	)
Total shareholders’ (deficit) equity			(12,180	)			20,626
Total liabilities and shareholders’ (deficit) equity		$	567,130			$	666,399

AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES

SELECTED FINANCIAL DATA

(In thousands, except per share amounts)

	Three Months Ended June 30,					Six Months Ended June 30,
	2008			2007		2008			2007
Revenues:
Interest	$	9,808		$	15,159	$	20,414		$	26,885
Other revenues		3			153		81			928
Total revenues		9,811			15,312		20,495			27,813
Expenses:
Interest		8,808			10,633		16,805			19,128
Interest – distributions to preferred shareholders of subsidiary (subject to mandatory repurchase)		547			554		1,095			1,123
General and administrative		593			542		1,555			1,147
Fees to Advisor and affiliates		540			918		1,274			1,886
Impairment of investment		4,470			--		30,968			--
Amortization and other		204			206		446			406
Total expenses		15,162			12,853		52,143			23,690
Other income (loss):
Gain on sale of investments		495			337		456			337
Change in fair value and loss on termination of derivative instruments		--			681		(2,640	)		650
Total other income (loss)		495			1,018		(2,184	)		987
(Loss) income from continuing operations		(4,856	)		3,477		(33,832	)		5,110
Income from discontinued operations, including gain on sale of real estate owned		--			--		--			3,531
Net (loss) income		(4,856	)		3,477		(33,832	)		8,641
7.25% Convertible Preferred dividend requirements		(308	)		--		(616	)		--
Net (loss) income available to common shareholders	$	(5,164	)	$	3,477	$	(34,448	)	$	8,641
Earnings per share (basic and diluted):
(Loss) income from continuing operations	$	(0.61	)	$	0.41	$	(4.08	)	$	0.61
Income from discontinued operations		--			--		--			0.42
Net (loss) income	$	(0.61	)	$	0.41	$	(4.08	)	$	1.03
Dividends per share	$	--		$	0.225	$	--		$	0.450
Weighted average shares outstanding:
Basic and diluted		8,445			8,403		8,439			8,402

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, 2008 and 2007, is summarized in the following table:

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Net (Loss) Income	$	(4,856	)	$	3,477		$	(33,832	)	$	8,641
Depreciation of real property(2)		--			--			--			336
Gain on sale of real property(2)		--			--			--			(3,611	)
FFO	$	(4,856	)	$	3,477		$	(33,832	)	$	5,366
Adjusted FFO(3)	$	(4,856	)	$	2,808		$	(33,832	)	$	4,727
Cash flows from operating activities	$	1,598		$	3,309		$	1,971		$	4,938
Cash flows from investing activities	$	8,748		$	(186,282	)	$	73,249		$	(270,610	)
Cash flows from financing activities	$	(6,884	)	$	175,298		$	(70,361	)	$	264,952
FFO per share (basic and diluted)	$	(0.58	)	$	0.41		$	(4.01	)	$	0.64
Adjusted FFO per share(3)
(basic and diluted)	$	(0.58	)	$	0.33		$	(4.01	)	$	0.56
Weighted average shares outstanding
(basic and diluted)		8,445			8,403			8,439			8,402

(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 relating 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 our operating performance or as an alternative to cash flows as a measure of liquidity.  Our 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)   Relates to properties sold in 2007, which are included in discontinued operations in our consolidated statements of income.

(3)   Adjusted FFO excludes the change in fair value of derivative instruments, net of certain associated costs.

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Certain statements in this document may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are detailed in AMAC's most recent Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission and include, among others, risks related to current liquidity which include, but are not limited to: market volatility for mortgage products; and the availability of financing for our investments; risks associated with the repurchase agreements we utilize to finance our investments and the ability to raise capital; risks associated with Collateral Debt Obligation (“CDO”) securitization transactions, which include, but are not limited to: the inability to acquire eligible investments for a CDO issuance; interest rate fluctuations on variable-rate swaps entered into to hedge fixed-rate loans; the inability to find suitable replacement investments within reinvestment periods; and the negative impact on our cash flow that may result from the use of CDO financings with over-collateralization and interest coverage requirements; risks associated with investments in real estate generally and the properties which secure many of our investments; risks of investing in non-investment grade commercial real estate investments; general economic conditions and economic conditions in the real estate markets specifically, particularly as they affect the value of our assets and the credit status of our borrowers; dependence on our Advisor for all services necessary for our operations; conflicts which may arise among us and other entities affiliated with our Advisor that have similar investment policies to ours; and risks associated with the failure to qualify as a REIT. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. We expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.