Resource America, Inc. (NASDAQ: REXI) (the "Company") reported adjusted income from continuing operations, a non-GAAP measure, of $4.5 million, or $0.24 per common share-diluted and $9.4 million, or $0.50 per common share-diluted for the second fiscal quarter and six months ended March 31, 2008, respectively, as compared to $5.9 million, or $0.31 per common share-diluted and $10.5 million, or $0.55 per common share-diluted for the second fiscal quarter and six months ended March 31, 2007, respectively. A reconciliation of the Company's reported income (loss) from continuing operations to adjusted income from continuing operations, a non-GAAP measure, is included as Schedule I to this release.

For the second fiscal quarter ended March 31, 2008, the Company reported revenues of $50.4 million, operating income of $20.3 million, and income from continuing operations and net income of $2.0 million, or $0.11 per common share-diluted, as compared to revenues of $32.4 million, operating income of $15.7 million, income from continuing operations of $5.9 million, or $0.31 per common share-diluted and net income of $5.8 million, or $0.31 per common share-diluted for the second fiscal quarter ended March 31, 2007.

For the six months ended March 31, 2008, the Company reported revenues of $94.4 million, operating income of $35.6 million, a loss from continuing operations and a net loss of $9.0 million, or ($0.51) per common share-diluted, as compared to revenues of $56.7 million, operating income of $25.3 million, income from continuing operations of $10.5 million, or $0.55 per common share-diluted and net income of $10.4 million, or $0.55 per common share-diluted for the six months ended March 31, 2007.

Net loss from continuing operations and net loss for the six months ended March 31, 2008 includes an $11.4 million loss, net of tax, incurred during the quarter ended December 31, 2007 in connection with the Company's decision to terminate its two remaining outstanding financial fund management warehouse credit facilities in the United States and Europe. The Company has now eliminated its exposure to these facilities and has satisfied the guarantees in their entirety. The Company's March 31, 2008 balance sheet reflects the removal of the assets and the associated liabilities of these facilities.

Jonathan Cohen, President and CEO of the Company, commented, "We are pleased with the continued growth of LEAF Financial and Resource Real Estate, which have benefitted from robust fundraising, new joint ventures and fresh institutional partners. We are now raising our third bank private equity fund to capitalize on opportunities in that space and are launching a CMBS focused real estate fund. We continue to manage the complexities of our Resource Financial Fund Management investments -- $14 billion of assets which we manage under long-term contracts. We anticipate further opportunities to sell non-core assets to reduce or eliminate our corporate debt by the end of this fiscal year. Our cost structures globally are being adjusted to reflect the changes in business environment and we expect to see significant cost savings in our fiscal 2009 that begins October 1, 2008. We will also be able to expand our operations as opportunities arise. Overall, we are energized by the opportunities presented to us in this changing marketplace and are taking advantage of them and will continue to."

On April 22, 2008, our subsidiary LEAF Financial Corporation ("LEAF") completed the transfer of a portfolio of leases and loans that were acquired in the NetBank acquisition by the sale to LEAF Equipment Leasing Income Fund III, L.P., ("LEAF Fund III") of LEAF's remaining 51% membership interest in the special purpose entity that owns the portfolio. LEAF had previously transferred a 49% membership interest in this special purpose entity to LEAF Fund III on January 31, 2008. This entity that owns the portfolio, which is wholly-owned by LEAF Fund III as a result of these sales, remains the borrower on the Morgan Stanley bridge financing. Accordingly, a total of $323.0 million of commercial finance assets were transferred by LEAF to LEAF Fund III together with $315.0 million of related debt financing.

As of March 31, 2008, the Company had, on a consolidated basis, total borrowings outstanding of $884.1 million. After adjusting for the April 22, 2008 transfer of $315.2 million of non-recourse bridge loans at LEAF that financed its acquisition of the NetBank leasing portfolio to LEAF Fund III, the borrowings outstanding will be $568.9 million, including $213.1 million of net liabilities consolidated under FIN 46-R as to which the Company has no recourse; $269.0 million of non-recourse revolving credit facilities at LEAF; $70.0 million of corporate level secured revolving debt; and $16.8 million of other debt, which is principally mortgage debt secured by properties owned by the Company's subsidiaries.

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