Brooke Capital Corporation Announces First Quarter 2008 Earnings

OVERLAND PARK, KS today reported its first quarter financial results for the quarter ended March 31, 2008.

"It was a challenging first quarter for Brooke Capital Corporation, given the current state of the credit markets," said Kyle Garst, chief executive officer of Brooke Capital Corporation. "Revenues from initial franchise fees decreased nearly $12 million in the first quarter of 2008 from the same quarter in the previous year. The decrease was primarily attributable to a decrease in the credit available to franchisees to acquire insurance agencies. Although we expect the credit markets, and initial franchise fees, to rebound at some point in the future, we are re-positioning our company so that recurring revenues from royalties and collateral preservation fees are sufficient to cover expenses."

The following includes net earnings and revenue information as reported for the three-month period ended March 31, 2008.

Reported Results of Operations - The net loss reported for the three months ended March 31, 2008, totaled $2.9 million, or $0.34 cents per diluted share, on reported revenues of $41.8 million, compared to reported net income of $2.7 million, or $0.34 cents per diluted share, on reported revenues of $48.7 million for the same period in the prior year.

Insurance Company Operations Segment - The Insurance Company Operations segment generated total revenues of $1.6 million for the three-month period ended March 31, 2008. Comparatively, the Insurance Company Operations' total revenues were $1.5 million during the three-month period ended March 31, 2007. This segment's income before tax was $23,000 for the three months ended March 31, 2008, compared to income before tax of $7,000 in the same period last year.

Insurance Agency Operations Segment - The Insurance Agency Operations segment generated total revenues of $40.7 million during the three-month period ended March 31, 2008. Comparatively, total revenues from this segment were $47.2 million during the three-month period ended March 31, 2007. The loss before tax from these activities was $4.5 million for the three-month period ended March 31, 2008, compared to income before taxes of $4.6 million in the prior year period.

Corporate Segment - Revenues for Brooke Capital parent company-only are not significant. The parent company-only incurred a loss before income taxes of $190,000 during the three-month period ended March 31, 2008. Comparatively, the parent incurred a loss of $160,000 during the three-month period ended March 31, 2007.

Same Store Sales - Combined same store sales of seasoned converted franchises and start up franchises for the trailing twelve months ended March 31, 2008 and 2007 decreased 3.50% and 0.5%, respectively. The median annual revenue growth rates of seasoned converted franchises and qualifying start up franchises for the trailing twelve months ended March 31, 2008 and 2007 were 6.45% and (0.4%).

Additional information is provided in the quarterly report on Form 10-Q filed with the Securities and Exchange Commission by Brooke Capital Corporation and Brooke Corporation.

Earnings Conference Call

Brooke Capital Corporation's chief executive officer, Kyle Garst, and chief operating officer, Dane Devlin, will host an investor and analyst conference call on May 12, at 8:30 a.m. CST to discuss its financial and operating results for the first quarter of 2008. To join the call, please dial (866) 831-6247 in the United States and Canada, or (617) 213-8856 if calling internationally. The conference ID number is 31094479. A live broadcast of the call will be available on the Investor Relations section of Brooke's Web site at www.brookeagent.com.

About Brooke Capital Corporation

Brooke Capital Corporation (AMEX: BCP) is an Overland Park, Kansas-based insurance organization and franchisor founded in 1997. Brooke Capital is the parent company of First Life America Corporation, a life insurance company, and Brooke Capital Advisors, Inc., a loan consultant for managing general insurance agencies.

This press release contains forward-looking statements. All forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: the uncertainty that the recently announced operating initiatives being implemented by the Company will be effective and sufficient, the impact of the continuing restricted credit market environment, the uncertainty that the Company will achieve its short-term and long-term profitability and growth goals, uncertainties associated with market acceptance of and demand for the Company's products and services, the impact of competitive products and pricing, the dependence on third-party suppliers and their pricing, the ability to meet product demand, the availability of funding sources, the exposure to market risks, uncertainties associated with the development of technology, changes in the law and in economic, political and regulatory environments, changes in management, the dependence on intellectual property rights, the effectiveness of internal controls, and risks and factors described from time to time in reports and registration statements filed by Brooke Capital Corporation with the Securities and Exchange Commission. A more complete description of the Company's business is provided in Brooke Capital Corporation's most recent annual, quarterly and current reports, which are available from Brooke Capital Corporation without charge or at www.sec.gov.

Contact Investor Relations: Karen Haus Market Street Partners on behalf of Brooke Capital Corporation (415) 445-3238 Email Contact

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