USA COMMERCIAL MORTGAGE COMPANY REPORTS PROGRESS IN CHAPTER 11 REORGANIZATION EFFORTS

• Security Agreement Reached for $58.4 million Obligation to USA Commercial Mortgage Company and Affiliates from USA Investment Partners, LLC.
• Company Will Seek to Resume Payments to Investors by August 2006
• Significant Progress in Collection of Principal and Previously Unpaid Interest
• Bundy Canyon $8.9 Million Funds to be Returned to Investors Soon

LAS VEGAS, June 13, 2006 — USA Commercial Mortgage Company (USACM) today announced significant progress in the efforts made by USACM and its affiliated bankruptcy debtors to reorganize under Chapter 11 of the U.S. Bankruptcy Code since the filing of their voluntary petitions on April 13, 2006.

Agreement Reached with USA Investment Partners, LLC. for $58.4 Million Obligation
USACM successfully negotiated an acceptable security agreement and promissory note with Joe Milanowski on behalf of USA Investment Partners, LLC (USAIP) to pledge USAIP's ownership interests in certain real estate projects as security for a set of receivables owed USACM. The agreement converts the receivables into a loan with an interest rate, maturity date, default provisions, and provides security for obligations owed by USAIP. USACM has filed a motion seeking approval of the agreement, which has been set for hearing on June 21, 2006.

By July 2006, Company Will Seek to Resume Payments and File Reorganization Plan
Mesirow will have completed its account reconciliations for each direct lender and each fund member by early July. The Company expects to file a motion with the Bankruptcy Court to be heard on July 25 for authority to make appropriate payments to investors from the money held in the Collection account and to begin regular payments to investors on performing loans. USACM also said it will seek authority to pay investors on non-performing loans as USACM collects on these loans.

"We are very aware of the impact on our investors of the stoppage of interest payments," said Thomas J. Allison, president and chief restructuring officer for USACM. "We will be ready to make appropriate distributions to investors after that date, subject to court approval. We look forward to working with the committees and the Court on the steps necessary to move the process along expeditiously from that point."

Allison added that he plans to file a reorganization plan for USACM in July.

Significant Progress in Collection of Principal and Unpaid Interest
USACM reported that since the bankruptcy petitions were filed, $48.3 million in principal has been collected from performing and non-performing loans, as well as $8.6 million in previously uncollected interest payments. The Company continues to aggressively pursue Borrowers on all non-performing loans to recover all monies owed on loans serviced by USACM. Several loans have repaid since the filing and are listed on the Loan Summary Report as of May 26, 2006, which was filed with the Court and posted on the USACM website.

Bundy Canyon $8.9 Million Funds to be Returned to Investors Soon
The Bankruptcy Court, at a May 18, 2006 hearing, approved USACM's motion to return funds held in escrow for the Bundy Canyon $8.9 million loan which was not funded. The Court's written order approving the motion was signed and entered on June 9, 2006. USACM currently is working with the escrow company to get the funds released as ordered by the Court so that the funds can be promptly distributed to the investors in this unfunded loan. USACM's best estimate for release of the funds is the week of June 12-16, 2006.

More Information to be Available on Website; Email and Text Message Updates
USACM is committed to making more current and detailed information available through its website - www.usacapitalcorp.com - including new and updated answers to frequently-asked questions, updates on loan status, and statements and press releases from the company. USACM also is adding a function to the website to enable site visitors to sign up to receive updates via email or text messages to a cell phone when new information is posted.

USA Commercial Mortgage Company
USA Commercial Mortgage Company and certain of its affiliates filed on April 13, 2006 voluntary petitions for reorganization under Chapter 11 with the U.S. Bankruptcy Court for the Southern District of Nevada. The company also does business under the name USA Capital. Filings for Chapter 11 were made for USA Commercial Mortgage Company; USA Capital Realty Advisors, LLC; USA Securities, LLC; USA Capital First Trust Deed Fund, LLC; and, USA Capital Diversified Trust Deed Fund, LLC. USA Commercial Mortgage Company, a privately-held company, is one of the nation's leading real estate lenders. Since 1989, USA Commercial Mortgage Company has provided more than $1 billion in short-term and permanent financing to homebuilders, commercial developers, apartment owners and institutions nationwide. The company is licensed by the State of Nevada Mortgage Lending Division (NV MBR #333) and has its headquarters at 4484 South Pecos Road, Las Vegas, Nevada, 89121.

MEDIA CONTACTS:

COMPANY
Mark L. Olson
USA Commercial Mortgage Co.
702.734.2400
702.353.6540 cell
molson@usacapitalcorp.com

PR AGENCY
Lynn Purdue
Purdue Marion & Associates
702.222.2362
702.241.5809 cell
lynn@purduemarion.com