Three Key Appointments Made to Move Company Forward
in Financial Management, Operational Efficiency, and Investment Strategy

HENDERSON, Nev., (May 30, 2007) --- Desert Capital REIT, Inc. today announced the appointment of G. Steven Dawson to Chief Financial Officer with Erin Ackerman and Jonathan Arens as Co-Chief Operating Officers, effective immediately.

As Chief Financial Officer, G. Steven Dawson will oversee the financial policies and strategies of the organization, as well as Securities and Exchange Commission (SEC) regulatory reporting and filings.

Erin Ackerman and Jonathan Arens will share lead duties in the company as Co-Chief Operating Officers executing the operational policies, objectives and initiatives of the company.

Mr. Dawson was previously a Board Member and Audit Committee Chairman at Desert Capital REIT.  Mr. Dawson offers more than 25 years of accounting, financial management and real estate experience. This experience includes an extensive tenure with Camden Property Trust, a large multi-family REIT, where Mr. Dawson served as the Senior Vice President and Chief Financial Officer.  As a member of the highly regarded executive management team he played a leading role in building Camden into one of the largest multi-family companies in the United States. Mr. Dawson is well-esteemed in the REIT community serving on four publicly-traded REIT boards: American Campus Communities, Inc., AMREIT, Alesco Financial Inc., and Medical Properties Trust.

Ms. Ackerman will continue to serve as Director of Stockholder Relations.  She is also the Executive Vice President and Treasurer of CMC Financial Services, Inc., the dealer-manager for Desert Capital REIT, overseeing financial management, compliance and client relations.

Mr. Arens was Chief Financial Officer of Desert Capital REIT before accepting his new role as Co-Chief Operating Officer. He will continue to be Chief Financial Officer for CMC Financial Services.

“The goal in aligning the executive management team is the cross-utilization of skills to create long-term growth for the organization,” said Todd B. Parriott, Chief Executive Officer and Chairman of the Board of Directors at Desert Capital REIT, “Erin and Jon have shown great leadership and decision-making capabilities in their previous roles and will excel in directing the company in their new positions. Steve brings financial depth and experience that will further benefit the portfolio and investors.”

Desert Capital REIT has grown to more than $200 million in total assets since its inception in 2003.  It’s wholly-owned subsidiary Consolidated Mortgage, one of the largest private trust deed investment firms in Nevada, has more than $450 million in loans under management. CMC Financial Services was created in 2003 to serve as dealer-manager for both companies and currently administers more than 4,000 accounts.

NOTE TO EDITORS: Headshots and FULL biographies FOR DAWSON, ACKERMAN AND ARENS available upon request.

About Desert Capital REIT, Inc.
Desert Capital REIT, Inc. is a Henderson, Nevada-based real estate investment trust that invests in loans to owners and developers of real estate properties.  Formed in December 2003, Desert Capital REIT’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.

About Consolidated Mortgage, LLC
With 30 years of continuous real estate investment success, Consolidated Mortgage, LLC is one of the largest private trust deed investment firms in Nevada, with over $450 million in loans under management. The company is headquartered in Henderson, Nevada. For more information, please call (877) 739-9094 or visit www.consolidatedmortgage.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.