DESERT CAPITAL REIT, INC. ANNOUNCES $15 MILLION IN STOCK SALES

LAS VEGAS (January 4, 2005) — Desert Capital REIT, Inc. today announced as of December 29, 2004 it has sold approximately $15 million of its common stock pursuant to its public offering.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. A written prospectus meeting the requirements of the Securities Act of 1933, as amended, may be obtained from CMC Financial Services, Inc., the dealer-manager of the offering, at 2357-A Renaissance Drive/Las Vegas, NV 89119. The shares are being offered on a "best efforts" basis through broker-dealers registered with the National Association of Securities Dealers, Inc. Desert Capital REIT intends to use the net proceeds of the offering to make investments in mortgage loans.

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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