Brooke Credit Corporation Closes $45 Million Debt Offering

(Wednesday, November 01, 2006) - Michael Lowry,president and chief executive officer of Brooke Credit Corporation, the finance company subsidiary of Brooke Corporation (NASDAQ: BXXX), announced Brooke Credit has closed a private placement debt offering consisting of $45 million in fixed rate notes, coupled with warrants, to a group of accredited institutional investors. No principal payments are required until scheduled maturity in April 2013. Morgan Joseph & Co. Inc. served as the sole
transaction advisor and placement agent for the debt offering.

Approximately $18.2 million of loan proceeds will be used to repay borrowings
used to fund the over-collateralization requirements associated with
securitizations previously closed by the company, and the remainder of
proceeds will be used to fund the company's growing loan portfolio and pay
various closing costs associated with the transaction. The repayment of
borrowings from the proceeds will also enable Brooke Credit to utilize the
monthly cash flow residual payments from its six previous securitizations to
help fund growth. In the past, these residuals were automatically applied
towards the securitization over-collateralization borrowings each month, as
required as part of the financing arrangement.

In conjunction with this financing, warrants were issued to purchase common
shares of Brooke Credit Corporation for a nominal amount, subject to
anti-dilution adjustments. These warrants are exercisable immediately.

"We are pleased to announce the closing of this debt offering," Lowry stated.
"To date in 2006, Brooke Credit has experienced an annualized growth rate in
its loan portfolio of approximately 65 percent. This new capital, combined
with the $52 million securitization and $80 million credit facility closed
during the third quarter, better positions Brooke Credit to capitalize on
lending opportunities within our target market and continue on this growth
path."

About Brooke Credit Corporation ... Brooke Credit Corporation is a subsidiary
of Brooke Corporation (NASDAQ: BXXX) that originates loans to insurance
agencies and related businesses. Brooke Credit's loan portfolio balances
totaled approximately $412.5 million on Sept. 30, 2006. Loans have been
mostly sold as individual loans to participating lenders or as pooled loans
to investors through asset-backed securitizations.

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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:
uncertainties associated with the exercise of the warrants to be issued as a
part of the transaction or the valuation thereof in the event that, under
certain circumstances, the Company pays cash for the warrants, the ability of
the parties to the debt transaction agreements to comply with all covenants
and obligations contained therein, 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, its
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 Corporation with the Securities and Exchange Commission. A more
complete description of Brooke's business is provided in Brooke Corporation's
most recent annual, quarterly and current reports, which are available from
Brooke Corporation without charge or at http://www.sec.gov/.

SOURCE: Brooke Corporation

CONTACT: Anita Larson of Brooke Corporation, larsa@brookecorp.com, or
+1-913-661-0123

Web site: http://www.brookecorp.com/
http://brookecorp.mediaroom.com/

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