ECC Capital Corporation ;, a mortgage finance real estate investment trust that originates ;and invests in residential mortgage loans, today announced that it would ;revise and reduce the previously reported loss for the six months ended ;June 30, 2005. The Company previously reported a net loss for the six months ended ;June 30, 2005 of $41,378,000 or $0.52 per diluted share. Due primarily to ;revisions in the value of derivatives used to hedge its LIBOR-based funding ;costs, the Company will be restating earnings for the six months ended June ;30, 2005 to reduce the previously reported net loss by between $6 million and ;$8 million ($0.08 and $0.10 per diluted share). The adjustment in derivative ;value has no impact on the Company's cash position. The Company is still in ;the process of closing its third quarter ended September 30, 2005 and will ;release earnings for the three and nine months then ended following market ;close on November 10, 2005. ; About ECC Capital Corporation ECC Capital Corporation, headquartered in Irvine, Calif., is a mortgage ;real estate investment trust (REIT) that originates and invests in residential ;mortgage loans. Through its wholesale and retail subsidiaries, ECC Capital ;offers a series of mortgage products to borrowers, with a particular emphasis ;on "nonconforming" borrowers who generally do not satisfy the credit, ;collateral, documentation or other standards required by conventional mortgage ;lenders and loan buyers. ECC Capital is structured to qualify as a REIT by ;managing a portfolio of nonconforming loans it originates or acquires. As a ;REIT, ECC Capital's principal business objective is to generate net income for ;distribution to its stockholders from the spread between the interest income ;on its assets in its portfolio and the costs of capital to finance its ;acquisition of these assets. ; Safe Harbor Regarding Forward-Looking Statements Certain statements contained in this press release may be deemed to be ;forward-looking statements under federal securities laws and ECC Capital ;intends that those forward-looking statements be subject to the safe-harbor ;created thereby. These forward-looking statements are based on current ;expectations and assumptions and are subject to risks and uncertainties, which ;could affect ECC Capital's future plans. ECC Capital cautions that these ;statements are qualified by important factors that could cause actual results ;to differ materially from those reflected by the forward-looking statements. ;You should review the other factors and risks discussed in ECC Capital's Form ;10-K for the year ended December 31, 2004, which was filed with the Securities ;and Exchange Commission on April 8, 2005. You should also be aware that, ;except as otherwise specified, all information in this news release is as of ;October 28, 2005. ECC Capital undertakes no duty to update any forward- ;looking statement to conform the statement to actual results or changes in ECC ;Capital's expectations. ; AT THE COMPANY: Roque A. Santi Chief Financial Officer (949) 856-7611 rsanti@encorecredit.com ; ; ;

Source: PR Newswire