MTC Mortgage Investment Corporation Reports IncomeReturn Over 9 Percent.

TORONTO--(BUSINESS WIRE)--Aug. 13, 1997--MTC Mortgage Investm (TSE:MTO.) MTC Mortgage Investment Corporation (the "Company") announced today the financial results of its second quarter. The Company also announced a dividend for its third quarter.

Second quarter earnings were $725,000,

representing earnings per share of $0.188, a 7.4 percent increase from the same period last year. Under the current management contract, management fees (which are capped at 1 percent per annum of the book value of invested assets) are payable only subsequent to the achievement of a target return on book value to shareholders. The Company continues to meets its current target return of 8 percent on book value.

As at June 30, 1997, total assets of the Company were $188 million, up from first quarter assets of $183.9 million. The Company has been able to grow the portfolio as better yields were available in the marketplace from time to time during the quarter. The portfolio continues to perform well, with non-performing loans representing only 0.37 percent of the total portfolio.

A third quarter dividend of $0.18 per share has been declared for payment September 30, 1997 to Shareholders of record September 19, 1997. This represents an income return of 9.3 percent per annum, based on the June 30th market value of $7.75.

Shares of the Company are listed on the Toronto Stock Exchange. The Company is managed by The Mutual Trust Company, a member of The Mutual Group.

CONTACT: MTC Mortgage Investment Corporation

Catherine Bruce, 416/591-2711