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Manhattan Bridge Capital, Inc. - Court Approves Settlement of Derivative Action

Manhattan Bridge Capital, Inc. - Court Approves Settlement of Derivative
Action

NEW YORK, April 3, 2013 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc.
(Nasdaq:LOAN), (the "Company") announced today that the Stipulation and
Agreement of Settlement of an action brought by Alan R. Kahn, derivatively on
behalf of the Company against the directors of the Company and the Company, as
a nominal defendant, was approved on April 2, 2013 by the Supreme Court of the
State of New York, County of Nassau. Under the terms of the settlement, Assaf
Ran is required to enter into a written commitment that he will not withdraw
his personal guarantee of the Company's Line of Credit with Sterling National
Bank for at least two years from the effective date of the settlement, but
only so long as he remains the Chief Executive Officer of the Company and the
record or beneficial owner of a majority of its Common Stock and provided that
if this Line of Credit is increased his maximum personal guarantee will not
exceed $5 million. In addition, the Company has agreed to continue various
governance practices now in effect and to strengthen its corporate governance
as follows:

  *Continue to maintain Audit, Compensation and Nominating Committees, each
    consisting entirely of independent directors and use its best reasonable
    efforts to include at least one (1) financial expert on the Audit
    Committee;
    
  *Continue to have all related party transactions considered by the
    independent directors of the Board or a committee consisting of at least
    three (3) independent directors who shall have the sole authority and full
    power of the Board to accept or reject such transactions and the authority
    to retain independent legal or other experts as it deems necessary;
    
  *Continue to maintain a Board with a majority of independent directors;
    
  *Continue to follow corporate governance requirements of the NASDAQ Stock
    Market, as amended from time to time, in determining whether directors are
    independent.

Each of these provisions will remain in effect until the earliest to occur of
(i) four years from the effective date, (ii) adoption by the United States
Securities and Exchange Commission of rules or regulations that would require
a provision herein to be amended or terminated; (iii)adoption of NASDAQ
Corporate Governance Requirements which would require a provision herein to be
amended or terminated; (iv)adoption of federal or state law that would
require a provision herein to be amended or terminated; or (v)at such time as
the Company ceases to be a publicly traded corporation.

As part of the settlement, the Company has agreed to pay Plaintiff's counsel
$80,000, inclusive of both attorney's fees and expenses.The counsel fees will
be paid in their entirety by the Company's Directors and Officers Liability
Insurance carrier.

Assaf Ran, Chairman of the Board and CEO, stated, "Although pure justice would
have meant fighting this lawsuit until a complete dismissal, settling it was a
smart and economically efficient decision. It's important to understand that
every control item that is mentioned in this agreement was already practiced
by the Company and that my personal guarantee had already been given, could
not be withdrawn without the consent of the Bank and was generally available
to the Company."

CONTACT: Assaf Ran, CEO
         (516) 444-3400
 
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