IRVINE, Calif., Feb. 28 /PRNewswire-FirstCall/ -- ECC Capital Corporation (OTC:ECRO), a mortgage finance real estate investment trust, announced today that its Board of Directors has declared a cash distribution of $0.10 per share of common stock. ECC Capital will make this distribution on Friday, March 21, 2008, to shareholders of record on Friday, March 7, 2008. ECC Capital recently received approximately $9.5 million from the release of over-collateralization proceeds related to the Encore Credit Receivables Trust 2005-1. The fact that ECC Capital received this distribution is not an indication that it will receive any additional distributions from any of its securitization trusts or, if it does receive a distribution, that those proceeds will be distributed to shareholders. The circumstances of the over-collateralization release from the 2005-1 trust were specific to that trust. These circumstances include, but are not limited to: -- This trust had more time to season prior to the deterioration of the lending and housing markets than the Encore Credit Receivables Trust 2005-2, 2005-3 and 2005-4 (the "Remaining Trusts"); and -- The losses and delinquencies for the 2005-1 trust were lower than the Remaining Trusts at comparable ages. ECC Capital continues to experience higher levels of delinquencies and losses on mortgage loans held for investment in its securitization trusts and deterioration in the housing market. Therefore, ECC Capital cannot guaranty it will receive any additional over-collateralization proceeds. The amount and timing of any over-collateralization released from any securitization trusts depends on, among other things, the applicable delinquency and credit loss limits specified in the securitization agreements and loan performance in those trusts. Further, ECC Capital has repeatedly cautioned about the uncertainty of any future distributions to shareholders due to future capital requirements, the adverse, changing and unpredictable environment in which it operates, the continued deterioration of the lending industry and capital markets and the subsequent adverse effects these factors have on ECC Capital's loan portfolio. Although ECC Capital has issued press releases in the past, in an effort to reduce costs and because of reduced staff and limited operations, ECC Capital limits its use of press releases. Please periodically check ECC Capital's website for information. You may also contact ECC Capital using the toll free number of 866-338-8749 or via email at . Safe Harbor Regarding Forward-Looking Statements Certain statements contained in this press release, including those regarding future distributions to shareholders and the release of proceeds related to over-collateralization may be deemed 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. These factors include, but are not limited to: (1) the impact of losses and delinquencies from ECC Capital's residual interests in securitizations (2) the tightening of credit standards, (3) the condition of the U.S. economy and financial system, (4) interest rates and the subsequent effect on the business, (5) ECC Capital's ability to obtain quality loan servicing and default management services, (6) the stability of residential property values, (7) the potential effect of new state or federal laws or regulations, (8) ECC Capital's ability to implement successfully its business plan, (9) continued availability of credit facilities and access to the securitization and capital markets or other sources of capital, (10) ECC Capital's ability and the ability of its subsidiaries to operate effectively within the limitations imposed on REITs by federal tax rules, (11) ECC Capital's ability to qualify for exemptions under any SEC registration requirements; (12) ECC Capital's ability to retain qualified personnel, and (13) other factors and risks discussed in ECC Capital's financial report for the three and nine months ended September 30, 2007 posted on its webpage or its Annual Report on Form 10-K for the year ended December 31, 2006, which is on file with the Securities and Exchange Commission. You should also be aware that, except as otherwise specified, all information in this news release is as of February 28, 2008. 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. For Further Information: AT THE COMPANY: Roque A. Santi President and Chief Financial Officer (949) 955-8730 DATASOURCE: ECC Capital Corporation CONTACT: Roque A. Santi, President and Chief Financial Officer of ECC Capital Corporation, +1-949-955-8730, Web site: http://www.ecccapital.com/

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