Press Release

FREDERIKSTED, U.S. Virgin Islands, Feb. 20, 2014 (GLOBE NEWSWIRE) -- Altisource Asset Management Corporation ("AAMC" or the "Company") (NYSE MKT: AAMC) announced today financial and operating results for the fourth quarter and full year of 2013. The Company's net loss for the fourth quarter of 2013 totaled $0.4 million, or $0.17 per share.¹ Net loss attributable to common stockholders for the year ended December 31, 2013 totaled $5.3 million or $2.26 per share.² Adjusted earnings for the fourth quarter of 2013 totaled $4.0 million and for the full year of 2013 totaled $2.5 million.³

Fourth quarter 2013 highlights:

• Generated positive adjusted earnings for the quarter of $4.0 million.³
• Earned incentive management fees from Altisource Residential Corporation ("Residential") of $4.8 million.
• Facilitated Residential's acquisition of three portfolios of non-performing residential mortgage loans ("NPLs") with an aggregate market value of underlying properties of $1.7 billion representing a 170% increase in underlying property value from the end of the third quarter.  $530 million of these NPLs closed in December 2013.

Full-year 2013 highlights:

• Facilitated the acquisition of an aggregate of approximately 13,500 non-performing loans with $2.7 billion in underlying property value.
• Assisted Residential in raising $659 million in equity capital at accretive prices.
• Assisted Residential in securing $750 million of portfolio debt financing.

Subsequent event highlights

• Assisted Residential in raising $468 million in equity capital at accretive prices.
• Facilitated Residential's purchase of $890 million of NPLs pursuant to fourth quarter agreements.

Chief Executive Officer Ashish Pandey stated, "2013 was a successful year for AAMC and Residential. Through our sound asset management services, Residential was successful in growing its NPL portfolio, securing additional debt and accretive equity capital and managing the resolution of its loans."

"We are proud of our implementation of Residential's differentiated business plan. We believe that, with AAMC's guidance, Residential successfully delivered on every critical aspect of its business model in 2013. Residential generated positive cash flows and achieved an acquisition discount that we believe translates into significant embedded value in its portfolio. I am pleased with what we have been able to accomplish for Residential and for our shareholders in our first full year of operations," said Chairman William Erbey.

Webcast and conference call

The Company will host a webcast and conference call on Thursday, February 20, 2014, at 11:30 a.m. Eastern Standard Time to discuss its financial results for the fourth quarter and full year of 2013.  The conference call will be webcast live over the internet from the Company's website at www.altisourceamc.com and can be accessed by clicking on the "Shareholder" section.

About AAMC

AAMC is an asset management company that provides portfolio management and corporate governance services to institutional investors.  Its initial client is Residential, a real estate investment trust that is focused on providing affordable rental homes to families throughout the United States.   Additional information is available at www.altisourceamc.com.

Forward-looking statements

This press release contains forward-looking statements that involve a number of risks and uncertainties.  Those forward-looking statements include all statements that are not historical fact, including statements about management's beliefs and expectations.  Forward-looking statements are based on management's beliefs as well as assumptions made by and information currently available to management.  Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected.  AAMC undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.  The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: AAMC's ability to implement its business plan; AAMC's ability to leverage strategic relationships on an efficient and cost-effective basis; its ability to compete; general economic and market conditions; governmental regulations, taxes and policies; availability of adequate and timely sources of liquidity and financing; and other risks and uncertainties detailed in the "Forward-Looking Statements," "Risk Factors" and other sections of AAMC's Registration Statement on Form 10, its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q for the first, second and third quarters of 2013 and other filings with the Securities and Exchange Commission.

Non-GAAP Performance Measures

This news release contains references to "adjusted earnings" which is a non-GAAP performance measure. We believe this non-GAAP performance measure provide additional meaningful information regarding our operating results.  This information should be considered in addition to, and not as a substitute for our financial results determined in accordance with U.S. GAAP.  

¹ Based on a weighted average of 2.3 million shares outstanding during the fourth quarter. 

² Based on a weighted average of 2.3 million shares outstanding during the year.

³Adjusted earnings are calculated by excluding non-cash stock compensation expense of $4.4 million and $7.8 million, respectively, from the Company's reported GAAP net losses of $0.4 million and $5.3 million for the fourth quarter and full year of 2013, respectively. 

The following tables set forth consolidating financial information which should be considered in addition to, and not as a substitute for, our consolidated financial statements presented in accordance with U.S. GAAP:

CONTACT: FOR FURTHER INFORMATION CONTACT:

         Kenneth D. Najour

         Chief Financial Officer

         T: 561-682-8947

         E: Kenneth.Najour@AltisourceAMC.com