PHILADELPHIA, PA--(Marketwire - August 6, 2008) - Resource America, Inc. (NASDAQ: REXI) (the "Company") reported operating results for the third fiscal quarter and nine months ended June 30, 2008.

The Company noted the following events during the quarter ended June 30, 2008 or thereafter:

--  Collection of Legacy Portfolio Loan.  On July 31, 2008, the Company
    collected approximately $18.4 million in connection with the substantial
    settlement of a discounted loan, which was secured by the Evening Star
    Building in Washington, D.C.  As a result of this repayment, the Company
    anticipates recognizing a pre-tax gain in the quarter ending September 30,
    2008 of approximately $7.5 million.  The Company's remaining investment is
    a discounted mezzanine note with a carrying value of $3.6 million, which is
    secured by a 5% interest in the property.  This investment was not
    generating material cash flow or income, thus the Company expects that this
    transaction will be immediately accretive to both net income and cash flow.
    
--  Distressed Real Estate Venture.  The Company entered into a $500.0
    million joint venture with Varde Investment Partners, a Minnesota based
    alternative asset manager.  The Company intends to originate, invest in and
    manage distressed real estate assets for the venture.  To date, the Company
    and Varde have purchased or entered into letters of intent to purchase
    approximately $63.0 million of assets. The Company will be paid origination
    fees, asset management fees and incentive fees.
    
--  Guidance.  The Company projects that its earnings from continuing
    operations (excluding non-recurring items) will be approximately $1.00 per
    common share-diluted in fiscal 2009, which begins October 1, 2008.
    
--  Adjusted Income from Continuing Operations.  The Company reported
    adjusted income from continuing operations, a non-GAAP measure, of $1.4
    million, or $0.08 per common share-diluted and $10.4 million, or $0.56 per
    common share-diluted for the third fiscal quarter and nine months ended
    June 30, 2008, respectively, as compared to $5.7 million, or $0.29 per
    common share-diluted and $16.2 million, or $0.84 per common share-diluted
    for the third fiscal quarter and nine months ended June 30, 2007,
    respectively.  A reconciliation of the Company's reported (loss) income
    from continuing operations to adjusted income from continuing operations, a
    non-GAAP measure, is included as Schedule I to this release.
    
--  Net (Loss) Income.  The Company recorded non-cash charges of $14.2
    million primarily related to residual interests underlying some of its
    funds.  In conjunction therewith, the Company reported a net loss of $8.0
    million, or ($0.46) per common share for the quarter ended June 30, 2008,
    and a net loss of $17.0 million, or ($0.97) per common share for the nine
    months ended June 30, 2008, as compared to net income of $4.2 million or
    $0.22 per common share-diluted for the quarter ended June 30, 2007, and
    $14.7 million, or $0.76 per common share-diluted for the nine months ended
    June 30, 2007.
    
--  Retail Capital Fundraising.  The Company continued to see strong
    demand from this channel, resulting in the completion of both LEAF
    Equipment Leasing Income Fund III, L.P. ("LEAF III") ($120.0 million
    raised) and Resource Real Estate Investors 6, L.P. ($35.0 million raised).
    Since March 31, 2008, the Company has launched four funds through this
    channel with targeted fundraising of approximately $300.0 million focused
    on leasing, real estate, banks, and commercial debt.
    
--  Adjusted Revenue and Adjusted Operating Income.  For the third quarter
    and nine months ended June 30, 2008, the Company reported adjusted revenues
    of $39.1 million and $141.4 million, respectively, as compared to $39.1
    million and $95.7 million for the third quarter and nine months ended June
    30, 2007, respectively.  For the third quarter and nine months ended June
    30, 2008, the Company reported adjusted operating income of $8.5 million
    and $51.9 million, respectively, as compared to $19.5 million and $44.8
    million for the third quarter and nine months ended June 30, 2007,
    respectively.  Adjusted revenues and adjusted operating income, both non-
    GAAP measures, include $9.7 million and $17.5 million of pre-tax mark-to-
    market adjustments on investments reported under the equity method of
    accounting, for the third quarter and nine months ended June 30, 2008,
    respectively.  A reconciliation of the Company's reported revenues and
    operating income to adjusted revenues and adjusted operating income is
    included as Schedule II to this release.
    
--  Increased Assets Under Management.  The Company increased its assets
    under management to $18.8 billion, a $1.1 billion increase (6.1%) from the
    quarter ended March 31, 2008 and a $2.0 billion increase (11.8%) from the
    quarter ended June 30, 2007.
    
--  Acquired Management Contracts.  The Company was successfully assigned
    the management contracts of four Collateralized Loan Obligations totaling
    approximately $1.3 billion, bringing the Company's total bank loan
    portfolio to approximately $4.4 billion.
    
--  Reduced Balance Sheet Exposure.  As of June 30, 2008, the Company
    reduced its total borrowings outstanding to $574.5 million from $884.1
    million at March 31, 2008, a decrease of 35%.  Of that amount, $213.2
    million is net liabilities consolidated under FIN 46-R as to which the
    Company has no recourse, $274.8 million is non-recourse revolving credit
    facilities at LEAF and $26.4 million is other debt, which includes a $9.9
    million loan that was assumed by a real estate investment partnership after
    June 30, 2008 and mortgage debt secured by properties owned by the
    Company's subsidiaries.  With proceeds from the repayment of the Evening
    Star Building loan, the Company will continue to reduce its corporate level
    secured revolving credit facilities which had $60.1 million outstanding at
    June 30, 2008.
    
--  The Company continued to adjust its operations in light of market
    conditions and, after valuation adjustments taken through June 30, 2008,
    has materially reduced its exposure to future valuation adjustments to
    approximately $3.9 million (net of tax) for trust preferred securities
    reported as investments in unconsolidated entities and $7.6 million (net of
    tax) for direct investments in collateralized debt obligations reported as
    investment securities available-for-sale.  The Company has no exposure to
    valuation adjustments for residential mortgage-backed securities.
    

Jonathan Cohen, President and CEO of the Company, commented, "We continue to make progress in reducing our balance sheet exposure to risk from the 2005-2007 financial fund management residuals. We are proud of our accomplishments, which we have discussed in this earnings release, in that we continue to: (1) raise assets under management in our core management sectors; (2) expand our distressed real estate business which we think can grow substantially over the next 24 months; (3) form new funds in our retail channel where we launched four funds in the recent period targeted to raise over $300 million; (4) pursue reductions in general and administrative areas; and (5) target balance sheet reductions. During our third quarter that ended on June 30, we continued to position Resource America for changing opportunities and economic circumstances. In future periods you can expect to see the Company's costs dropping significantly. We thank you for your patience during fiscal 2008 and look forward to returning to the previously high growing asset management firm we were in previous years."

Assets Under Management

The following table details the Company's assets under management by operating segment:

                                                      At June 30,
                                              -----------------------------
                                                  2008           2007
                                              -------------- --------------
Financial fund management                     $ 15.4 billion $ 14.2 billion
Real estate                                      1.8 billion    1.5 billion
Commercial finance                               1.6 billion    1.1 billion
                                              -------------- --------------
                                              $ 18.8 billion $ 16.8 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/A for the fiscal year ended September 30, 2007.

Book Value

As of June 30, 2008, the Company's GAAP book value per common share was $8.91 per share. Total stockholders' equity was $156.6 million as of June 30, 2008 as compared to $185.3 million as of September 30, 2007. Total common shares outstanding were 17,575,599 as of June 30, 2008 as compared to 17,417,307 as of September 30, 2007.

Other Highlights for the Third Fiscal Quarter Ended June 30, 2008 and Recent Developments

--  On April 25, 2008 LEAF announced that it had successfully completed
    the public offering of its third public investment partnership, LEAF III,
    which raised approximately $120.0 million.  LEAF III closed within 14
    months, 42% ahead of the original two year projected offering period, and
    utilized a syndicate of more than 70 broker dealers that participated in
    the offering. This is LEAF's third fund; the first, LEAF I raised
    approximately $17.1 million in gross offering proceeds; the second, LEAF II
    raised approximately $60.0 million in gross offering proceeds.
    
--  LEAF's assets under management at June 30, 2008 were $1.6 billion, an
    increase of $561.0 million (52%) from June 30, 2007.
    
--  Resource Real Estate Holdings, Inc. ("Resource Real Estate"), the
    Company's real estate asset manager that invests in and manages real estate
    investment vehicles on behalf of itself and for outside investors and
    operates the Company's commercial real estate debt platform, increased its
    assets under management to $1.8 billion at June 30, 2008, an increase of
    $253.0 million (17%) from June 30, 2007.  Since October 1, 2007, Resource
    Real Estate has acquired $112.2 million in real estate assets for its
    investment vehicles.
    
--  Resource Real Estate increased its apartment units under management to
    15,758 at June 30, 2008, an increase of 3,293 units (26%) from June 30,
    2007.  This includes a portfolio of 39 multi-family properties representing
    approximately 9,800 apartment units managed by Resource Residential,
    Resource Real Estate's wholly-owned subsidiary.
    
--  In the third fiscal quarter ended June 30, 2008, Resource Real Estate
    acquired one distressed note for $9.25 million and three multi-family
    residential apartment properties for its portfolio with an aggregate
    acquisition cost of $41.7 million. In addition Resource Real Estate entered
    into a purchase and sale agreement on August 1, 2008, to acquire two
    distressed multi-family assets of $15.4 million.
    
--  The Company's financial fund management operating segment increased
    its assets under management at June 30, 2008 to $15.4 billion, an increase
    of $1.2 billion (8%) from June 30, 2007.
    
--  The Company's Board of Directors authorized the payment of a cash
    dividend to be paid on August 29, 2008 in the amount of $0.07 per share of
    the Company's common stock to all holders of record at the close of
    business on August 15, 2008.
    
--  Resource Capital Corp. (NYSE: RSO), a real estate investment trust for
    which the Company is the external manager, announced a dividend
    distribution of $0.41 per common share for the quarter ended June 30, 2008,
    unchanged from the quarter ended March 31, 2008.
    

The Company generated $35.9 million of cash from operating activities from continuing operations as adjusted during the nine months ended June 30, 2008. A reconciliation of net cash provided by (used in) operating activities of continuing operations to net cash provided by operating activities of continuing operations as adjusted, a non-GAAP measure, is included as Schedule III to this release.

Resource America, Inc. is a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the commercial finance, real estate 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. 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/A. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new or changing information or events.

The remainder of this release contains the Company's unaudited consolidated balance sheets, consolidated statements of operations, consolidated statements of cash flows, reconciliation of GAAP (loss) income from continuing operations to adjusted income from continuing operations, reconciliation of GAAP revenue to adjusted revenue and a reconciliation of GAAP operating (loss) income to adjusted operating income and reconciliation of net cash provided by (used in) operating activities of continuing operations to net cash provided by operating activities of continuing operations as adjusted.

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


                                                    June 30,  September 30,
                                                      2008        2007
                                                  -----------  -----------
                                                  (unaudited)  (restated)
ASSETS
   Cash                                           $     7,797  $    14,624
   Restricted cash                                     24,270       19,340
   Receivables                                          3,692       21,255
   Receivables from managed entities                   32,321       20,177
   Loans sold, not settled                              1,990      152,706
   Loans held for investment, net                     222,123      285,928
   Investments in commercial finance, net             305,501      243,391
   Investments in real estate, net                     49,563       49,041
   Investment securities available-for-sale, at
    fair value                                         30,481       51,777
   Investments in unconsolidated entities              20,942       39,342
   Property and equipment, net                         28,167       12,286
   Deferred income taxes                               38,822       29,877
   Goodwill                                             7,969        7,941
   Intangible assets, net                               4,474        4,774
   Other assets                                        23,701       18,664
                                                  -----------  -----------
      Total assets                                $   801,813  $   971,123
                                                  ===========  ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
   Accrued expenses and other liabilities         $    53,801  $    60,546
   Payables to managed entities                         1,003        1,163
   Borrowings                                         574,496      706,372
   Deferred income tax liabilities                     11,124       11,124
   Minority interests                                   4,829        6,571
                                                  -----------  -----------
      Total liabilities                               645,253      785,776
                                                  -----------  -----------

   Commitments and contingencies                            -            -

Stockholders' equity:
   Preferred stock, $1.00 par value, 1,000,000
    shares authorized; none outstanding                     -            -
   Common stock, $.01 par value, 49,000,000
    shares authorized; 27,480,825 and 26,986,975
    shares issued, respectively (including
    nonvested restricted stock of 582,655 and
    199,708, respectively)                                269          268
   Additional paid-in capital                         268,038      264,747
   Retained earnings                                    6,476       27,171
   Treasury stock, at cost; 9,322,571 and
    9,369,960 shares, respectively                   (101,553)    (102,014)
   ESOP loan receivable                                  (205)        (223)
   Accumulated other comprehensive loss               (16,465)      (4,602)
                                                  -----------  -----------
      Total stockholders' equity                      156,560      185,347
                                                  -----------  -----------
                                                  $   801,813  $   971,123
                                                  ===========  ===========




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


                                 Three Months Ended     Nine Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
                                           (restated)            (restated)
REVENUES
Commercial finance              $  21,803  $  12,808  $  82,434  $  28,461
Real estate                         5,626      7,008     18,790     18,580
Financial fund management           2,017     18,635     22,662     48,065
                                ---------  ---------  ---------  ---------
                                   29,446     38,451    123,886     95,106
COSTS AND EXPENSES
Commercial finance                 10,967      5,416     32,751     13,607
Real estate                         5,672      3,971     16,464     10,179
Financial fund management           7,122      5,925     20,020     15,878
General and administrative          3,954      3,413     11,169      8,956
Provision for credit losses         1,550        113      5,770        158
Depreciation and amortization       1,309        728      3,264      2,156
                                ---------  ---------  ---------  ---------
                                   30,574     19,566     89,438     50,934
                                ---------  ---------  ---------  ---------
OPERATING (LOSS) INCOME            (1,128)    18,885     34,448     44,172

Interest expense                   (9,776)   (10,176)   (39,048)   (22,461)
Minority interest income
 (expense), net                     2,590       (980)      (677)    (2,255)
Other (expense) income, net        (5,530)     2,079    (22,606)     6,418
                                ---------  ---------  ---------  ---------
                                  (12,716)    (9,077)   (62,331)   (18,298)
                                ---------  ---------  ---------  ---------
(Loss) income from continuing
 operations before taxes          (13,844)     9,808    (27,883)    25,874
(Benefit) provision for income
 taxes                             (5,820)     4,119    (10,874)     9,704
                                ---------  ---------  ---------  ---------
(Loss) income from continuing
 operations                        (8,024)     5,689    (17,009)    16,170
Loss from discontinued
 operations, net of tax                (1)    (1,450)       (10)    (1,506)
                                ---------  ---------  ---------  ---------
NET (LOSS) INCOME               $  (8,025) $   4,239  $ (17,019) $  14,664
                                =========  =========  =========  =========

Basic (loss) earnings per
 common share:
Continuing operations           $   (0.46) $    0.32  $   (0.97) $    0.93
Discontinued operations                 -      (0.08)         -      (0.09)
                                ---------  ---------  ---------  ---------
Net (loss) income               $   (0.46) $    0.24  $   (0.97) $    0.84
                                =========  =========  =========  =========
Weighted average shares
 outstanding                       17,549     17,569     17,493     17,463
                                =========  =========  =========  =========

Diluted (loss) earnings per
 common share:
Continuing operations           $   (0.46) $    0.29  $   (0.97) $    0.84
Discontinued operations                 -      (0.07)         -      (0.08)
                                ---------  ---------  ---------  ---------
Net (loss) income               $   (0.46) $    0.22  $   (0.97) $    0.76
                                =========  =========  =========  =========
Weighted average shares
 outstanding                       17,549     19,210     17,493     19,215
                                =========  =========  =========  =========

Dividends declared per common
 share                          $    0.07  $    0.07  $    0.21  $    0.20




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


                                                        Nine Months Ended
                                                            June 30,
                                                      --------------------
                                                         2008       2007
                                                      ---------  ---------
                                                                 (restated)

CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income                                     $ (17,019) $  14,664
Adjustments to reconcile net (loss) income to net
 cash provided by (used in) operating activities, net
 of acquisitions:
   Impairment charge on collateralized debt
    obligation investments                                8,123          -
   Depreciation and amortization                          4,299      2,712
   Provision for credit losses                            5,770        158
   Minority interests                                       677      2,255
   Equity in losses (earnings) of unconsolidated
    entities                                             10,260    (12,191)
   Distributions from unconsolidated entities            14,651     12,995
   Loss on sales of loans                                17,674          -
   Gains on sales of assets                              (2,033)    (6,783)
   Deferred income tax benefit                          (13,689)    (6,657)
   Non-cash compensation on long-term incentive plans     3,808      1,983
   Non-cash compensation issued                             107      1,630
   Non-cash compensation received                           359     (1,550)
Decrease (increase) in commercial finance investments    35,842   (137,620)
Changes in operating assets and liabilities             (14,627)       (42)
                                                      ---------  ---------
Net cash provided by (used in) operating activities
 of continuing operations                                54,202   (128,446)
                                                      ---------  ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                                     (5,621)    (3,406)
Payments received on real estate loans and real
 estate                                                   8,109     15,703
Investments in real estate, including properties         (8,380)   (16,245)
Purchases of investments                               (247,067)   (19,821)
Proceeds from sale of investments                        27,701      6,158
Principal payments received on loans                     10,071          -
Net cash paid for acquisitions                           (8,022)   (20,708)
Increase in other assets                                (17,352)    (3,423)
                                                      ---------  ---------
Net cash used in investing activities of continuing
 operations                                            (240,561)   (41,742)
                                                      ---------  ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings                                  780,898    559,278
Principal payments on borrowings                       (568,617)  (395,169)
Minority interest contributions                             315          -
Minority interest distributions                          (1,394)    (2,040)
Dividends paid                                           (3,676)    (3,533)
Increase in restricted cash                             (27,948)    (7,166)
Proceeds from issuance of stock                             182        927
Purchase of treasury stock                                 (237)    (2,777)
Tax benefit from the exercise of stock options                -      1,887
                                                      ---------  ---------
Net cash provided by financing activities of
 continuing operations                                  179,523    151,407
                                                      ---------  ---------
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities                                          9       (527)
Financing activities                                          -     (1,145)
                                                      ---------  ---------
Net cash provided by (used in) discontinued
 operations                                                   9     (1,672)
                                                      ---------  ---------
Decrease in cash                                         (6,827)   (20,453)
Cash at beginning of period                              14,624     37,622
                                                      ---------  ---------
Cash at end of period                                 $   7,797  $  17,169
                                                      =========  =========

This press release contains supplemental financial information determined by methods other than in accordance with Accounting Principles Generally Accepted in the United States of America ("GAAP"). The Company's management uses this non-GAAP measure in its anlysis of the exclusion of certain adjustments recorded in the Company's nine months ended June 30, 2008. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.


SCHEDULE I

      RECONCILIATION OF GAAP (LOSS) INCOME FROM CONTINUING OPERATIONS
              TO ADJUSTED INCOME FROM CONTINUING OPERATIONS
                  (in thousands, except per share data)
                                (unaudited)


                                 Three Months Ended     Nine Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------- ---------  ----------
                                           (restated)            (restated)
(Loss) Income from continuing
 operations - GAAP              $  (8,024) $    5,689 $ (17,009) $   16,170
Adjustments, net of tax:
   Resource residential
    start-up costs                      -           -       333           -
   Impairment charges on CDO
    investments                     1,971           -     2,776           -
   Losses on sales of loans           260           -    11,130           -
   Partnership level
    adjustments (1)                 6,343           -    11,364           -
   RCC incentive stock                591           -     1,527           -
   Other                              288           -       303           -
                                ---------  ---------- ---------  ----------
Adjusted income from continuing
 operations (2)                 $   1,429  $    5,689 $  10,424  $   16,170
                                =========  ========== =========  ==========

Weighted average diluted shares
 outstanding (3)                   18,434      19,210    18,550      19,215
                                =========  ========== =========  ==========

Adjusted income from continuing
 operations per share-diluted   $    0.08  $     0.29 $    0.56  $     0.84
                                =========  ========== =========  ==========


(1) Includes mark-to-market realized and unrealized valuation adjustments
    related to trust preferred securities of bank and bank holding
    companies and a decrease due to a discount recorded in connection with
    subordinate and incentive management fees the Company expects to
    receive in the future.
(2) During the three and nine months ended June 30, 2008, in connection
    with substantial volatility and reduction in liquidity in the global
    credit markets, the Company recorded several significant adjustments.
    For comparability purposes, the Company is presenting adjusted income
    from continuing operations because it facilitates the evaluation of the
    Company without the effect of these adjustments.  Adjusted income from
    continuing operations should not be considered as an alternative to
    (loss) income from continuing operations (computed in accordance with
    GAAP).  Instead, adjusted income from continuing operations should be
    reviewed in connection with (loss) income from continuing operations in
    the Company's consolidated financial statements, to help analyze how
    the Company’s business is performing.
(3) Includes 885,000 and 1,057,000 diluted shares not used in the
    calculation of loss from continuing operations per share-diluted for
    the three and nine months ended June 30, 2008.




SCHEDULE II

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


                                 Three Months Ended     Nine Months Ended
                                      June 30,              June 30,
                                --------------------  ---------------------
                                  2008       2007       2008       2007
                                ---------  ---------- ---------- ----------
                                           (restated)            (restated)
Revenues
   Commercial finance           $  21,803  $   12,808 $   82,434 $   28,461
   Real estate                      5,626       7,008     18,790     18,580
   Financial fund management        2,017      18,635     22,662     48,065
                                ---------  ---------- ---------- ----------
Total revenue - GAAP               29,446      38,451    123,886     95,106

Adjustments:
   Mark-to-market
    adjustments (1)                 9,674         636     17,501        610
                                ---------  ---------- ---------- ----------
Adjusted revenue (2)            $  39,120  $   39,087 $  141,387 $   95,716
                                =========  ========== ========== ==========

Operating (loss) income - GAAP  $  (1,128) $   18,885 $   34,448 $   44,172

Adjustments:
   Mark-to-market
    adjustments (1)                 9,674         636     17,501        610
                                ---------  ---------- ---------- ----------
Adjusted operating income (2)   $   8,546  $   19,521 $   51,949 $   44,782
                                =========  ========== ========== ==========


(1) Includes realized mark-to-market adjustments of ($6.2 million) and $0
    for the three month ended June 30, 2008 and 2007, respectively, and
    ($6.8 million) and $0 for the nine months ended June 30, 2008 and 2007,
    respectively.
(2) Management of the Company views adjusted revenues and adjusted
    operating income as useful and appropriate supplements to revenues -
    GAAP and operating (loss) income - GAAP since they exclude
    mark-to-market adjustments related to current credit market conditions
    and are not indicative of the Company’s current operating performance.




SCHEDULE III

 RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF
  CONTINUING OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES OF
                    CONTINUING OPERATIONS AS ADJUSTED
                              (in thousands)
                                (unaudited)


Net cash provided by operating activities of continuing operations as
adjusted was $35.9 million for the nine months ended June 30, 2008, an
increase of $20.4 million as compared to net cash provided by operating
activities of $15.5 million in the nine months ended June 30, 2007.  The
following reconciles net cash provided by (used in) operating activities of
continuing operations to net cash provided by operating activities of
continuing operations as adjusted (in thousands):

                                                      Nine Months Ended
                                                           June 30,
                                                    ----------------------
                                                       2008        2007
                                                    ----------  ----------
                                                                (restated)
Net cash provided by (used in) operating activities
 of continuing operations - GAAP                    $   54,202  $ (128,446)
Adjustments:
   (Decrease) increase in commercial finance
    investments                                        (35,842)    137,620
   Changes in operating assets and liabilities          14,627          42
   Proceeds from sales of investments                    2,933       6,268
                                                    ----------  ----------
Net cash provided by operating activities of
 continuing operations as adjusted (1)              $   35,920  $   15,484
                                                    ==========  ==========


(1) Management of the Company view net cash provded by operating
    activities of continuing operations as adjusted as a useful and
    appropriate supplement to GAAP net cash provided by operating
    activities of continuing operations since it reflects how management
    views its liquidity and working capital requirements.

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