DESERT CAPITAL REIT, INC. DECLARES DIVIDEND ON SHARES OF COMMON STOCK

LAS VEGAS (October 8, 2004) — Desert Capital REIT, Inc., a Las Vegas-based real estate investment trust, announced today its initial dividend on its shares of common stock. The board of directors of Desert Capital declared a monthly dividend of $0.075 per share of common stock that will be paid on October 15, 2004 to shareholders of record as of September 30, 2004. The dividend will be paid to shareholders on a prorated basis based on the number of days the applicable shares have been held.

About Desert Capital REIT, Inc.
Desert Capital REIT, Inc., is a Las Vegas, Nev.-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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