Resource America, Inc. Reports Operating Results for the First Fiscal Quarter Ended December 31, 2009


PHILADELPHIA, PA--(Marketwire - February 8, 2010) - Resource America, Inc. (NASDAQ: REXI) (the "Company") reported both income from continuing operations and net income attributable to common shareholders of $971,000, or $0.05 per common share-diluted for the first fiscal quarter of 2010 as compared to a loss from continuing operations attributable to common shareholders of $3.3 million, or $0.18 per common share-diluted, and a net loss attributable to common shareholders of $3.2 million, or $0.18 per common share-diluted, for the first fiscal quarter of 2009.

Jonathan Cohen, CEO and President commented, "Our first fiscal quarter showed solid profitability after the two previous quarters were essentially break even. We are seeing the benefits from having narrowed our focus on our real estate, corporate loans and leasing businesses. In doing so, we have tailored our approach and our business models to changed economic times, but we have maintained our long-standing objective of developing and growing businesses with scalable platforms. The financial crisis of 2007-2009 did cause great damage, but we are now seeing many opportunities in our businesses. Including commitments from institutional and joint venture partners, we have approximately $500.0 million of capital to invest. As we continue to raise capital in this environment for our managed businesses, including Resource Capital, Resource Real Estate Opportunity REIT, Inc. and Apidos Opportunity Fund, we will focus on profitability across all of our businesses."

The Company also reported:

--  Capital Fundraising.
      -  In December 2009, Resource Real Estate Holdings, Inc. ("Resource
         Real Estate") closed its real estate opportunity fund, which
         focuses on acquiring discounted real estate assets and related
         debt, having raised $41.4 million.
      -  LEAF Financial, Inc. ("LEAF") also closed LEAF Equipment Finance
         Fund 4, L.P. in October 2009, having raised $125.7 million.
--  Resource Real Estate filed a $750.0 million registration statement with
    the Securities and Exchange Commission on July 7, 2009 for Resource
    Real Estate Opportunity REIT, Inc. of which Resource Real Estate will
    be the external manager.  Resource Real Estate recently filed a second
    amendment to the originally filed registration statement.
--  Debt Reduction.  As of December 31, 2009, the Company reduced its total
    consolidated borrowings outstanding to $174.0 million from $608.7
    million as of December 31, 2008, a decrease of $434.7 million (71%).
    At December 31, 2009, borrowings include $124.9 million of borrowings
    under a non-recourse credit facility at LEAF, $19.4 million of
    corporate revolving debt, $13.2 million of senior notes, net of
    discounts, and $16.5 million of other debt, of which $14.6 million is
    in mortgage debt secured by the underlying properties.
--  Resource Capital Corp. Follow-On Offering. Resource Capital Corp
    (NYSE: RSO) ("RCC"), a real estate investment trust for which the
    Company is the external manager and a shareholder, completed a public
    offering of 10 million shares of its common stock at a price of $4.50
    per share.  RCC received net proceeds, after underwriting discounts but
    before expenses, of $43.8 million.  Since August 2009, RCC also added
    an additional $13.9 million of capital through other issuances of its
    common stock.  The Company is paid a base management fee of 1.5% based
    on RCC's equity.
--  Adjusted Revenues and Adjusted Operating Income - Non-GAAP Measures.
    For the first fiscal quarter ended December 31, 2009, the Company
    reported adjusted revenues of $22.9 million as compared to $33.2
    million for the first fiscal quarter ended December 31, 2008.  For the
    first fiscal quarter ended December 31, 2009, the Company reported
    adjusted operating income of $1.9 million as compared to $5.0 million
    for the first fiscal quarter ended December 31, 2008.  Adjusted
    revenues and adjusted operating income excludes a $2.6 million pre-tax
    fair value gain for the first fiscal quarter ended December 31, 2009 as
    compared to the inclusion of $1.2 million of pre-tax fair value losses
    for the first fiscal quarter ended December 31, 2008.  A reconciliation
    of the Company's total GAAP revenues and GAAP operating income to
    adjusted revenues and adjusted operating income is included in
    Schedule I to this release.

Assets Under Management

The following table details the Company's assets under management by operating segment, which decreased by $4.2 billion (24%) from December 31, 2008 to December 31, 2009:

                                                    At December 31,
                                            -------------------------------
                                                 2009            2008
                                            --------------- ---------------
Financial fund management                   $ 10.4  billion $ 14.2  billion
Real estate                                    1.7  billion    1.7  billion
Commercial finance                             1.2  billion    1.6  billion
                                            --------------- ---------------
                                            $ 13.3  billion $ 17.5  billion
                                            =============== ===============

A description of how the Company calculates assets under management is set forth in Item 1 of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2009.

Book Value

As of December 31, 2009, the Company's GAAP book value per common share was $7.89 per share. Total stockholders' equity was $142.3 million as of December 31, 2009 as compared to $141.2 million as of December 31, 2008. Total common shares outstanding were 18,036,643 as of December 31, 2009 as compared to 17,665,259 as of December 31, 2008.

Other Highlights for the First Fiscal Quarter Ended December 31, 2009 and Recent Developments

--  The Company has reduced its borrowings to $174.0 million at December
    31, 2009, a decrease of $17.4 million from September 30, 2009.  This
    decrease primarily reflects an $11.6 million reduction in borrowings on
    LEAF's revolving warehouse credit facility and a $7.7 million reduction
    on one of the Company's corporate revolving lines of credit.
--  The Company issued $18.8 million of senior notes in a private placement
    to institutional investors in September and October 2009.  The proceeds
    were primarily used to reduce the Company's corporate borrowings on one
    of its lines of credit.
--  Resource Real Estate completed fundraising for Resource Real Estate
    Opportunity Fund L.P., ("RREI Opportunity Fund") a real estate
    partnership focused on investing in discounted real estate and related
    debt, having raised $41.4 million. In January 2010, RREI Opportunity
    Fund acquired a 296 unit multifamily rental property in Houston, Texas.
--  Resource Real Estate Management, Inc., the Company's property
    management subsidiary, increased the apartment units it manages to
    13,127 at December 31, 2009 from 12,794 at December 31, 2008.
--  In January 2010, Resource Real Estate completed the sale of its
    interest in a property in Minnesota, receiving net proceeds of
    $811,000. As a result of the sale, this previously consolidated
    entity will be deconsolidated thus further reducing the Company's
    debt by $1.0 million.
--  LEAF entered into a vendor program relationship with the Life Safety
    division of Honeywell to provide flexible financing solutions for
    companies acquiring mass notification, fire, and life safety systems
    and upgrades.
--  The Company's Board of Directors authorized the payment of a cash
    dividend paid on January 29, 2010 in the amount of $0.03 per share on
    the Company's common stock to holders of record at the close of
    business on December 31, 2009.
--  RCC paid a cash dividend of $0.25 per common share for its fourth
    quarter ended December 31, 2009.

Resource America, Inc. is a specialized asset management company that uses industry specific expertise to evaluate, originate, service and manage investment opportunities for its own account and for outside investors in the real estate, commercial finance and financial fund management sectors.

For more information, please visit our website at www.resourceamerica.com or contact investor relations at pkamdar@resourceamerica.com.

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release and its other reports filed with the Securities and Exchange Commission. For information pertaining to risks relating to these forward-looking statements, reference is made to the section "Risk Factors" contained in Item 1A of the Company's Annual Report on Form 10-K. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new or changing information or events except as may be required by law.

A registration statement relating to the securities to be offered by Resource Real Estate Opportunity REIT, Inc. has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. A written prospectus may be obtained by contacting Chadwick Securities, Inc., 1845 Walnut Street, 10th Floor, Philadelphia, PA 19103.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The remainder of this release contains the Company's unaudited consolidated balance sheets, consolidated statements of operations, consolidated statements of cash flows, and reconciliation of GAAP revenues to adjusted revenues and reconciliation of GAAP operating income to adjusted operating income.

                          RESOURCE AMERICA, INC.
                        CONSOLIDATED BALANCE SHEETS
                    (in thousands, except share data)

                                              December 31,   September 30,
                                                  2009           2009
                                              -------------  -------------
                                               (unaudited)   (as revised)
ASSETS
  Cash                                        $       8,409  $      26,197
  Restricted cash                                     2,231          2,741
  Receivables                                           852          1,358
  Receivables from managed entities and
   related parties, net                              61,249         55,047
  Investments in commercial finance - held
   for investment, net                                1,776          2,429
  Investments in commercial finance - held
   for sale, net                                    132,621        142,701
  Investments in real estate, net                    27,631         27,313
  Investment securities available-for-sale,
   at fair value                                     20,022         19,500
  Investments in unconsolidated entities             14,420         16,241
  Property and equipment, net                        12,689         13,435
  Deferred tax assets                                45,552         45,656
  Goodwill                                            7,969          7,969
  Intangible assets, net                              3,441          3,637
  Other assets                                       11,738         11,616
                                              -------------  -------------
    Total assets                              $     350,600  $     375,840
                                              =============  =============

LIABILITIES AND EQUITY
Liabilities:
  Accrued expenses and other liabilities      $      32,107  $      40,986
  Payables to managed entities and related
   parties                                              245          1,284
  Borrowings                                        174,030        191,383
  Deferred tax liabilities                            2,046          2,046
                                              -------------  -------------
    Total liabilities                               208,428        235,699
                                              -------------  -------------

Commitments and contingencies

Equity:
  Preferred stock, $1.00 par value, 1,000,000
   shares authorized; none outstanding                    -              -
  Common stock, $.01 par value, 49,000,000
   shares authorized; 27,761,974 and
   27,757,849 shares issued, respectively
   (including nonvested restricted stock of
   531,603 and 552,461, respectively)                   272            272
  Additional paid-in capital                        279,689        277,944
  Accumulated deficit                               (22,040)       (22,471)
  Treasury stock, at cost; 9,193,728 and
   9,213,665 shares, respectively                  (100,150)      (100,367)
  Accumulated other comprehensive loss              (15,517)       (15,560)
                                              -------------  -------------
    Total stockholders' equity                      142,254        139,818
  Noncontrolling interests                              (82)           323
                                              -------------  -------------
    Total equity                                    142,172        140,141
                                              -------------  -------------
    Total liabilities and equity             $     350,600  $     375,840
                                              =============  =============







                          RESOURCE AMERICA, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                  (in thousands, except per share data)
                                (unaudited)

                                                    Three Months Ended
                                                       December 31,
                                                --------------------------
                                                    2009          2008
                                                ------------  ------------
REVENUES:                                                     (as revised)
Real estate                                     $      6,947  $      6,890
Commercial finance                                     8,823        15,151
Financial fund management                              9,652         9,919
                                                ------------  ------------
                                                      25,422        31,960
                                                ------------  ------------
COSTS AND EXPENSES:
Real estate                                            4,727         5,918
Commercial finance                                     4,575         7,449
Financial fund management                              4,704         5,728
General and administrative                             3,432         4,008
Loss (gain) on sales of leases and loans                 582          (233)
Provision for credit losses                              776         3,744
Depreciation and amortization                          2,206         1,547
                                                ------------  ------------
                                                      21,002        28,161
                                                ------------  ------------
OPERATING INCOME                                       4,420         3,799
                                                ------------  ------------

OTHER (EXPENSE) INCOME:
Impairment losses on investment securities              (929)
Recognized in other comprehensive loss                   929
                                                ------------
Net impairment losses recognized in earnings               -        (4,923)
Interest expense                                      (3,817)       (8,399)
Other income, net                                        570         1,699
                                                ------------  ------------
                                                      (3,247)      (11,623)
                                                ------------  ------------
Income (loss) from continuing operations before
 taxes                                                 1,173        (7,824)
Income tax provision (benefit)                           585        (4,146)
                                                ------------  ------------
Income (loss) from continuing operations                 588        (3,678)
Income from discontinued operations, net of tax            -            75
                                                ------------  ------------
Net income (loss)                                        588        (3,603)
Add:  Net loss attributable to the
 noncontrolling interests                                383           383
                                                ------------  ------------
Net income (loss) attributable to common
 shareholders                                   $        971  $     (3,220)
                                                ============  ============

Basic income (loss) per share attributable to
 common shareholders:
Continuing operations                           $       0.05  $      (0.18)
Discontinued operations                                    -             -
                                                ------------  ------------
Net income (loss)                               $       0.05  $      (0.18)
                                                ============  ============
Weighted average shares outstanding                   18,689        18,221
                                                ============  ============

Diluted income (loss) per share attributable to
 common shareholders:
Continuing operations                           $       0.05  $      (0.18)
Discontinued operations                                    -             -
                                                ------------  ------------
Net income (loss)                               $       0.05  $      (0.18)
                                                ============  ============
Weighted average shares outstanding                   18,962        18,221
                                                ============  ============

Dividends declared per common share             $       0.03  $       0.07
                                                ============  ============

Amounts attributable to common shareholders:
Income (loss) from continuing operations, net
 of tax                                         $        971  $     (3,295)
Discontinued operations, net of tax                        -            75
                                                ------------  ------------
Net income (loss)                               $        971  $     (3,220)
                                                ============  ============







                          RESOURCE AMERICA, INC.
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (in thousands)
                                (unaudited)

                                                        Three Months Ended
                                                           December 31,
                                                        ------------------
                                                          2009      2008
                                                        --------  --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) attributable to common shareholders   $    971  $ (3,220)
Adjustments to reconcile net income (loss) attributable
 to common shareholders to net cash used in operating
 activities:
  Net impairment losses recognized in earnings                 -     4,923
  Depreciation and amortization                            3,173     2,011
  Provision for credit losses                                776     3,744
  Equity in (earnings) losses of unconsolidated
   entities                                               (3,405)      314
  Distributions from unconsolidated entities               1,176     1,548
  Loss (gain) on sale of leases and loans                    582      (233)
  Gain on sale of assets                                    (244)       (3)
  Deferred income tax provision (benefit)                     34    (1,084)
  Equity-based compensation issued                         1,120     1,204
  Equity-based compensation received                        (375)     (103)
Decrease (increase) in commercial finance investments -
 held for sale                                             8,386   (23,443)
Change in operating assets and liabilities               (13,431)   (2,441)
                                                        --------  --------
Net cash used in operating activities                     (1,237)  (16,783)
                                                        --------  --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                                        (118)     (127)
Purchase of commercial finance assets held for
 investment                                                    -   (41,942)
Payments received on sale of commercial finance assets
 - held for investment                                         -    13,881
Purchase of loans and investments                         (1,640)  (11,244)
Proceeds from sale of loans and investments                2,274     3,419
Principal payments received on loans                           -     2,024
Other                                                       (412)   (3,320)
                                                        --------  --------
Net cash provided by (used in) investing activities          104   (37,309)
                                                        --------  --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings                                    45,701   163,095
Principal payments on borrowings                         (62,326) (108,601)
Dividends paid                                              (540)   (1,234)
Decrease in restricted cash                                  510     2,268
Purchase of subsidiary stock held by a noncontrolling
 stockholder                                                   -      (264)
                                                        --------  --------
Net cash (used in) provided by financing activities      (16,655)   55,264
                                                        --------  --------
(Decrease) increase in cash                              (17,788)    1,172
Cash at beginning of year                                 26,197    14,910
                                                        --------  --------
Cash at end of period                                   $  8,409  $ 16,082
                                                        ========  ========







SCHEDULE I

RECONCILIATION OF GAAP REVENUES TO ADJUSTED REVENUES AND RECONCILIATION OF
            GAAP OPERATING INCOME TO ADJUSTED OPERATING INCOME
                              (in thousands)
                                (unaudited)

                                                        Three Months Ended
                                                           December 31,
                                                        -------------------
                                                          2009      2008
                                                        --------  ---------
Revenues:
  Real estate                                           $  6,947  $   6,890
  Commercial finance                                       8,823     15,151
  Financial fund management                                9,652      9,919
                                                        --------  ---------
Total revenues - GAAP                                     25,422     31,960

Adjustments:
  Fair value adjustments  (1)                             (2,570)     1,218
                                                        --------  ---------
Adjusted revenues (2)                                   $ 22,852  $  33,178
                                                        ========  =========

Operating income - GAAP                                 $  4,420  $   3,799

Adjustments:
  Fair value adjustments  (1)                             (2,570)     1,218
                                                        --------  ---------
Adjusted operating income (2)                           $  1,850  $   5,017
                                                        ========  =========

(1) Reflects pre-tax fair value adjustments on investments reported under
    the equity method of accounting.

(2) Management of the Company views adjusted revenues and adjusted
    operating income, both non-GAAP measures, as useful and appropriate
    supplements to revenues and operating income since they exclude fair
    value adjustments related to current credit market conditions and are
    not indicative of the Company's current operating performance.

Contact Information: Contact: Thomas C. Elliott Chief Financial Officer Resource America, Inc. One Crescent Drive, Suite 203 Philadelphia, PA 19112 215/546-5005 215/546-4785 (fax)