On December 29, 2011, Accredited Mortgage Loan REIT Trust (“Accredited REIT”) received a distribution from the Liquidating Trust in the matter styled In Re: Accredited Home Lenders Holding Co., et al., Case No. 09-11516 (“AHL Bankruptcy”) pursuant to the provisions of the Debtors’ Fifth Amended Chapter 11 Plan of Liquidation (“Fifth Amended Plan”) approved on May 24, 2011, by the U.S. Bankruptcy Court for the District of Delaware (“Bankruptcy Court”). The Board of Trustees of Accredited REIT subsequently declared a special cash distribution to the holders of its 9.75% Series A Perpetual Cumulative Preferred Shares in the aggregate amount of $28,655,746, representing $7.00 per preferred share outstanding. The cash distribution from Accredited REIT will be paid on February 3, 2012, to holders of record of its preferred shares as of the close of business on January 24, 2012.

Accredited REIT may receive additional payments from the Debtors pursuant to the Fifth Amended Plan. However, the timing and amount of any such future payments are beyond the control of Accredited REIT. Copies of the Fifth Amended Plan, the Fifth Amended Disclosure Statement, the Bankruptcy Court’s Order Confirming the Fifth Amended Plan and other information concerning the AHL Bankruptcy may be found at www.kccllc.com. The Board of Trustees of Accredited REIT may declare additional dividends or distributions to the holders of its preferred shares if, as and to the extent determined in the sole discretion of its Board of Trustees, subject to the provisions of law and the Declaration of Trust of Accredited REIT, as amended and supplemented to date.

Accredited Mortgage Loan REIT Trust, a subsidiary of Accredited Home Lenders Holding Co., is a Maryland real estate investment trust that was formed in May 2004 for the purpose of acquiring, holding and managing real estate assets.

Statements regarding future events constitute forward-looking statements within the meaning of the federal securities laws. Such statements are based on current expectations, and the actual results and the timing of certain events could differ materially from those contemplated by these forward-looking statements due to a number of factors including, but not limited to, developments in the AHL Bankruptcy and the liquidity of Accredited REIT.