Vestin Realty Mortgage II Reports Second Quarter, First Half Financial Results

LAS VEGAS--(Business Wire)--
Vestin Realty Mortgage II (Nasdaq: VRTB) today reported a net loss
for the second quarter ended June 30, 2008 of approximately $28.6
million, or ($1.92) per share, on revenues of $5.9 million, compared
with net income of approximately $4.4 million or $0.29 per share on
revenues of $8.3 million in the comparable period a year ago.

For the six months ended June 30, 2008, the Company reported a net
loss of approximately $25.3 million or ($1.70) per share compared with
net income of approximately $10.8 million, or $0.72 per share for the
same period in 2007.

The Company noted that the losses for both the quarter and the six
months ended June 30, 2008 were in large part due to non-performing
loans and the Company's recording of a loan loss provision of
approximately $22.3 million. In addition, the Company incurred write
downs for real estate held for sale of approximately $11 million and
$12.8 million for the quarter and six months ended June 30, 2008,
respectively.

As of June 30, 2008, the Company had 43 loans outstanding with an
aggregate principal amount approximating $288 million, of which 17
loans with an aggregate principal amount approximating $122 million
were considered non-performing and three loans totaling approximately
$29.3 million are considered delinquent. A loan is classified
delinquent when they are temporarily past due. Loans are considered
non-performing when based on current information and events; it is
probable that the Company will be unable to collect all amounts due
according to the contractual terms of the loan agreement or when the
payment of interest is 90 days past due. Non-performing and delinquent
loans increased from March 31, 2008 when the Company reported 10 loans
representing approximately $58.2 million as non-performing loans. The
Company has commenced foreclosure proceedings with respect to the 17
non-performing loans. In addition, the Company is conducting workout
discussions with certain non-performing borrowers; however, no
assurance can be made as to whether these discussions will be
successful. During July 2008, we received payment in full on loan
which was delinquent as of June 30, 2008 in the amount of $22.3
million, a principal payment of $4.9 million on a delinquent loan and
the receipt of delinquent interest on a loan that was considered
delinquent on June 30, 2008. As of August 8, 2008, we had foreclosed
upon two of the non-performing loans and classified them as real
estate held for sale. As of June 30, 2008, we owned five properties we
acquired through foreclosure, compared with two properties owned as of
June 30, 2007.

As of June 30, 2008 shareholder equity was $15.98 per common
share. The Company had on its balance sheet $14.3 million of cash and
cash equivalents, $253.1 million of investment in real estate loans,
net of allowance of $34.5 million, $21.7 in real estate held for sale
and $78.5 million in total liabilities as of June 30, 2008. Net cash
flow from operating activities was $9.9 million.

Michael V. Shustek, Chairman and Chief Executive Officer, said,
"Our results are largely attributable to the economic environment the
country is experiencing. The downturn in the real estate market and
the increased difficulties faced by our borrowers in obtaining
take-out financing, has caused a number of our loans to become
non-performing or delinquent and has caused a decline in the
underlying collateral securing the Company's loan portfolio. We are
working aggressively to resolve our problem loans; however, this
process will take time and our near term operating results are likely
to suffer from the level of non-performing assets."

About Vestin Realty Mortgage II, Inc.

Vestin Realty Mortgage II, Inc. is a real estate investment trust
("REIT") that invests in commercial real estate loans. As of June 30,
2008, Vestin Realty Mortgage II, Inc. had assets of more than $316
million. Vestin Realty Mortgage II, Inc. is managed by Vestin
Mortgage, Inc., which is a subsidiary of Vestin Group, Inc., which is
engaged in asset management, real estate lending and other financial
services through its subsidiaries. Since 1995, Vestin Mortgage Inc.
has facilitated more than $2.0 billion in lending transactions.

Forward-Looking Statements

Certain information discussed in this press release may constitute
forward-looking statements within the Private Securities Litigation
Reform Act of 1995 and the federal securities laws. Although the
Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions at
the time made, it can give no assurance that its expectations will be
achieved. Readers are cautioned not to place undue reliance on these
forward-looking statements. Forward-looking statements are inherently
subject to unpredictable and unanticipated risks, trends and
uncertainties, such as the Company's potential inability to accurately
forecast its operating results; the Company's potential inability to
regain profitability or continue to generate positive cash flow from
operations; constraints in the credit markets, the availability of
take-out financing for our borrowers; defaults on outstanding loans;
unexpected difficulties encountered in pursuing our remedies if a loan
is in default; a decline in the value of collateral securing our
loans, declining real estate values in the markets we serve and other
risks associated with the Company's business. The Company assumes no
obligation to update or supplement forward-looking statements that
become untrue because of subsequent events.

Stern And Company
Steve Stern, 702-240-9533
steve@sdsternpr.com

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