DESERT CAPITAL REIT, INC. ANNOUNCES DIVIDEND INCREASE FROM 9 PERCENT TO 12 PERCENT

LAS VEGAS (May 3, 2005)—Desert Capital REIT, Inc., a Las Vegas-based real estate investment trust, announced an increase in the monthly dividend returns on its shares of common stock from $0.075 to $0.10, effective April 29, 2005 for each month in the three-month period expiring July 15, 2005.

Desert Capital REIT’s new monthly dividend of $0.10 per share of the company’s common stock is payable as follows: on May 16, 2005, to the holders of record of the common stock at the close of business on April 29, 2005; on June 15, 2005, to the holders of record of the common stock at the close of business on May 31, 2005; and on July 15, 2005, to holders of record on June 30, 2005.

“This is a major step forward in the total acquisition of Consolidated Mortgage,” says Todd B. Parriott, CEO and Chairman of the Board of Directors of Desert Capital REIT. “With state regulatory requirements complete and the management transition team in place, Desert Capital is poised to assume full ownership of Consolidated Mortgage end of 2005.”

“The decision by our Board of Directors to increase the dividend shows faith in our ability to grow our corporate portfolio and exceed shareholder expectations,” said Todd B. Parriott, CEO and Chairman of the Board of Directors of Desert Capital REIT, Inc.

Desert Capital REIT’s previous monthly dividend of $0.075 per share of common stock equated to an annualized nine percent yield on the $10 offering price. Dividend yield is computed by dividing the annualized dividend by the price an investor pays for shares. As a result, Desert Capital REIT’s annualized dividend of $1.20 per share equates to a 12 percent yield on its $10 offering price.

Desert Capital REIT is a Las Vegas-based mortgage REIT. Desert Capital REIT shares are now being offered through CMC Financial Services, Inc.

For a prospectus and free informational kit, please contact CMC Financial Services, Inc., toll-free at 888-942-9292, in Las Vegas at 702-795-7930 or online at www.cmcfinancialservicesinc.com.

About Desert Capital REIT, Inc.
Desert Capital REIT, Inc. is a Las Vegas, Nevada-based real estate investment trust that invests in loans to owners and developers of real estate properties. Formed in December 2003, Desert Capital’s portfolio of mortgage loans consists of acquisition and development, construction, commercial property and residential loans. For more information, please call (800) 419-2855 or visit www.desertcapitalreit.com.

Statements included herein that state the company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 which by their nature, involve known and unknown risks and uncertainties. The company’s actual results, performance or achievements could differ materially from those expressed or implied by such statements.

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