Prime Rate Investors Inc. (fka PRRM)

[PINKIE 144]

NEWS OUT: (BSNS WIRE) Prime Rate Investors Inc. Has Been Paid Closing Points and Has Re
eived Final Funding Request for Hotel, Forward Split
Prime Rate Investors Inc. Has Been Paid Closing Points and Has Received Final Fu
ding Request for Hotel, Forward Split Set for September 1st


Business Editors

CORAL GABLES, Fla.--(BUSINESS WIRE)--PRRM--
Prime Rate Investors, Inc. (Pink Sheets:PRRM) announces
that the company has received final funding request for closing from
Royal Arkansas Hotel and Suites and has paid Prime Rate Investors its
fees for funding. Closing is set for August 27. The mortgage loan is a
draw on the $2,000,000 credit line and is at 18% interest. Richard
Astrom, President of Prime Rate Investors, said, "We are excited to
make the loan as we consider it to be a prudent and profitable
investment." The hotel consists of 200 units and it attached to the
Pine Bluff, Arkansas Convention Center. The hotel and Convention
Center are across the street from the City of Pine Bluff City Hall.
The convention center is owned and operated by the City of Pine Bluff
Arkansas. Bob Purvis, director of the Convention Center, said, "We are
excited to have new ownership in the hotel as they are experienced
hotel operators, and they are bringing new and fresh ideas to the
hotel and Convention Center." Prime Rate typically lends through its
subsidiary Tampa Bay Mortgage Solutions, Inc. and lends 70 percent of
the value of property at rates of 15 percent per year, plus points.
Typically term is 1 to 2 years.
Board of Directors has approved a resolution for the forward split
of the common stock of the Company by unanimous written consent of the
Board of Directors whereby every holder of 10 shares of common stock
shall be entitled to an additional one share of capital stock. The
effective date of this forward split shall be September 1, 2004. The
shares will be mailed directly to the owners of record by Signature
Stock Transfer Inc. approximately one week after the September 1st
effective date.
The company owns Tampa Bay Mortgage Services, Inc. in Tampa,
Florida, which is a direct lender specializing in short term asset
based lending. The company specialty is acquisition financing,
construction loans, and lines of credit for builders and investors.
The mission of the company is to build a diverse portfolio of debt and
equity instruments that will provide the shareholders with both
current income and capital appreciation. The specialty of the company
is "hassle free hard equity loans." The company has a web site:
http://www.prrm.us.
This release includes forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 that involve risks and uncertainties including, but not
limited to, the impact of competitive products, the ability to meet
customer demand, the ability to manage growth, acquisitions of
technology, equipment, or human resources, the effect of economic and
business conditions, and the ability to attract and retain skilled
personnel. The Company is not obligated to revise or update any
forward-looking statements in order to reflect events or circumstances
that may arise after the date of this release.



KEYWORD: FLORIDA
INDUSTRY KEYWORD: BUILDING/CONSTRUCTION REAL ESTATE BANKING BANKING
SOURCE: Prime Rate Investors, Inc.


CONTACT INFORMATION:
Prime Rate Investors, Inc.
Richard Astrom, 786-236-6434
Fax: [phone]
http://www.prrm.us
E-mail: [e-mail]

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