Manhattan Bridge Capital, Inc. Reports Third Quarter Financial Results


NEW YORK, Oct. 30, 2008 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that income from continuing operations for the three month period ended September 30, 2008 was $0.02 per basic and diluted share, versus loss from continuing operations of ($0.01) per basic and diluted share for the three month period ended September 30, 2007.

Total revenues for the three month period ended September 30, 2008 were approximately $200,000 versus total revenues of approximately $62,000 for the three month period ended September 30, 2007.

Net income for the nine month period ended September 30, 2008 was $0.07 per basic and diluted share or $240,723, versus net loss of ($0.11) per basic and diluted share or ($351,021) for the nine month period ended September 30, 2007.

Total revenues for the nine month period ended September 30, 2008 were approximately $544,000 versus total revenues of approximately $70,000 for the nine month period ended September 30, 2007. For the nine month period ended September 30, 2008 revenue of approximately $489,000 represents interest income on the short term and long term loans and approximately $55,000 represents income from origination fees.

Other income for the nine month period ended September 30, 2008 was approximately $116,000.

As of September 30, 2008, the Company reported a book value of $7,016,372 or $2.17 per share.

As of September 30, 2008, the Company reported approximately $5,700,000 of outstanding short term and long term loans and $1,200,000 of cash and cash equivalents, marketable securities and auction rate securities.

Assaf Ran, Chairman of the Board and CEO stated, "Despite the challenging market conditions, our team managed to successfully accomplish the next stage of our business plan. Revenues continue to climb and earnings follow. As we grow our operations we continue to operate efficiently and maintain a low operating cost structure. We strive to increase growth further by leveraging our assets."

Manhattan Bridge Capital, Inc. provides short term, secured, non-banking, commercial loans to small businesses. In addition we developed innovative software and a related web site that allows retail businesses and other service providers to reach prospective customers and clients for their goods and services in a more effective way than traditional on-line and print yellow pages searches. We operate several web sites including: http://www.manhattanbridgecapital.com. and http://www.nextyellow.com.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including, without limitation, continued acceptance of the Company's products, increased levels of competition, new products introduced by competitors, changes in the rates of subscriber acquisition and retention, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.


            MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS

 Assets                                         Sept. 30,   Dec. 31,
                                                  2008        2007
                                               ----------  ----------
                                               (Unaudited)  (Audited)

 Current assets:
 Cash and cash equivalents                     $  312,828  $  621,724
 Marketable securities                            616,973     802,811
 Auction rate securities                          275,000          --
 Short term investment - insurance annuity
  contract - at fair value                             --     931,555
                                               ----------------------
   Total cash and cash equivalents,
    marketable securities and short term
    investment                                  1,204,801   2,356,090

 Short term loans                               5,490,291   4,313,211
 Interest receivable on short term loans           64,692      41,184
 Due from purchaser                                23,881     156,103
 Other current assets                              24,518      17,083
                                               ----------------------
   Total current assets                         6,808,183   6,883,671

 Long term loans                                  200,000          --
 Property and equipment, net                       10,645      14,261
 Capitalized web development costs, net            37,007      74,015
 Security deposit                                  17,515      17,515
 Investment in privately held company, at cost    100,000     100,000
                                               ----------------------

   Total assets                                $7,173,350  $7,089,462
                                               ======================

 Liabilities and Shareholders' Equity
 Current liabilities:
 Accounts payable and accrued expenses         $   85,216  $  123,886
 Deferred gain from the sale of Jewish
  Directories                                          --      72,917
 Deferred origination fees                         62,658       4,597
 Income taxes payable                               9,104          --
                                               ----------------------
   Total current liabilities                      156,978     201,400
                                               ----------------------

 Commitments and contingencies 
 Shareholders' equity:
 Preferred shares - $.01 par value; 5,000,000
  shares authorized; no shares issued                  --          --
 Common shares - $.001 par value; 25,000,000
  authorized; 3,305,190 issued and 3,236,460
  outstanding                                       3,305       3,305
 Additional paid-in capital                     9,259,267   9,180,235
 Treasury stock, at cost - 68,730 shares         (231,113)   (231,113)
 Accumulated other comprehensive loss            (632,718)   (441,272)
 Accumulated deficit                           (1,382,369) (1,623,093)
                                               ----------------------
   Total shareholders' equity                   7,016,372   6,888,062
                                               ----------------------

  Total liabilities and shareholders' equity   $7,173,350  $7,089,462
                                               ======================


            MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (unaudited)

                            Three Months             Nine Months
                            ------------             -----------
                         Ended September 30,     Ended September 30,
                         -------------------     -------------------

                          2008        2007        2008        2007

 Interest income from
  short term loans     $  177,650  $   60,504  $  489,035  $   65,471
 Origination fees          22,438          --      55,071          --
 Subscription
  revenues, net                38       1,324         138       4,305
                       ----------------------------------------------
   Total Revenue          200,126      61,828     544,244      69,776
                       ----------------------------------------------

 Operating costs and
  expenses:
 Web development
  expenses                 12,336      12,336      37,008      37,008
 General and
  administrative
  expenses                143,520     159,330     452,702     549,368
                       ----------------------------------------------
   Total operating
    costs and expenses    155,856     171,666     489,710     586,376
                       ----------------------------------------------
 Income (Loss) from
  operations               44,270    (109,838)     54,534    (516,600)
                       ----------------------------------------------

 Interest and dividend
  income                   17,885      36,631      59,007     189,434
 Realized gain on
  marketable securities        --      51,359      18,122      40,790
 Other income                  --          --      39,000          --
                       ----------------------------------------------
   Total other income      17,885      87,990     116,129     230,224
 Income (loss) from
  continuing operations
  before provision for
  income taxes             62,155     (21,848)    170,663    (286,376)
 Provision for income
  taxes                   (13,346)         --      (2,857)         --
                       ----------------------------------------------
 Income (loss) from
  continuing operations    48,809     (21,848)    167,806    (286,376)
                       ----------------------------------------------
 Discontinued
  Operations:
 Gain on the sale of
  the Jewish
  Directories (net of
  tax effect of 0 in
  2008 and 2007)               --      72,918      72,917     194,444
 Gain (loss) from
  operations of
  Shopila (net of tax
  effect of 0)                 --     113,915          --    (259,089)
                       ----------------------------------------------
 Income (loss) from
  discontinued
  operations                   --     186,833      72,917     (64,645)
                       ----------------------------------------------
 Net Income (loss)     $   48,809  $  164,985  $  240,723  $ (351,021)
                       ==============================================

 Basic net income
  (loss) per common
  share outstanding:
 Continuing operations $     0.02  $    (0.01) $     0.05  $    (0.09)
 Discontinued
  operations                             0.06        0.02       (0.02)
                       ----------------------------------------------
 Net income (loss) per
  common share - Basic $     0.02  $     0.05  $     0.07  $    (0.11)
                       ==============================================
 Diluted net income
  (loss) per common
  share outstanding:
 Continuing operations $     0.02  $    (0.01) $     0.05  $    (0.09)
 Discontinued
  operations                             0.06        0.02       (0.02)
                       ----------------------------------------------
 Net income (loss) per
  common share -
  Diluted              $     0.02  $     0.05  $     0.07  $    (0.11)
                       ==============================================
 Weighted average
  number of common
  shares outstanding
 --Basic                3,236,460   3,236,460   3,236,460   3,236,460
 --Diluted              3,237,953   3,236,460   3,238,121   3,236,460


           MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (unaudited)
                                                  Nine Months Ended
                                                    September 30,
                                                  2008        2007
                                               ----------  ----------
 Cash flows from operating activities:
   Net income (loss)                           $  240,723  $ (351,021)
   Adjustments to reconcile net income
    (loss) to net cash provided by (used in)
    operating activities:
   Gain on the sale of Jewish Directories         (72,917)   (194,444)
   Loss from discontinued operations of
    Shopila                                            --     259,089
   Depreciation and amortization                   40,624      40,376
   Non cash compensation expense                   79,032     121,667
   Realized gain on sale of marketable
    securities                                    (18,122)    (40,790)
   Changes in operating assets and liabilities:
     Interest receivable on short term loans      (23,508)    (22,945)
     Due from purchaser                            35,000          --
     Other current and non current assets          (7,435)      4,622
     Accounts payable and accrued expenses        (38,670)   (127,241)
     Deferred origination fees                     58,061          --
     Income taxes payable                           9,104     (29,436)
     Assets and Liabilities of discontinued
      operations                                       --     (94,653)
                                               ----------------------
       Net cash provided by (used in)
        operating activities                      301,892    (434,776)
                                               ----------------------

 Cash flows from investing activities:
   Proceeds from sale of marketable
    securities, auction rate securities and
    annuity contract                            1,844,070   1,888,680
   Investment in marketable securities,
    auction rate securities and annuity
    contract                                   (1,175,000) (1,291,264)
   Issuance of short term and long term loans  (4,543,977) (2,488,618)
   Collection received from short term loans    3,166,897          --
   Cash received on sale of Jewish Directories     97,222     255,860
                                               ----------------------
       Net cash used in investing activities     (610,788) (1,635,342)
                                               ----------------------


                                               ----------------------

 Net decrease in cash                            (308,896) (2,070,118)
 Cash and cash equivalents, beginning of the
  year                                            621,724   3,613,988
                                               ----------------------
 Cash and cash equivalents, end of period      $  312,828  $1,543,870
                                               ======================

 Supplemental Cash Flow Information:
 Taxes paid during the period                  $   11,465  $   28,981
                                               ======================
 Interest Paid during the period               $    4,421          --
                                               ======================


            

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