Altisource Asset Management Corporation Letter to Shareholders

Altisource Asset Management Corporation (“AAMC” or the “Company”) (NYSE American: AAMC) posts the following letter to shareholders:

Dear Fellow Shareholders:

From my perspective, one of the most important assets of AAMC is our interest in the EV Alpha Control System business. Our interest in the Alpha Control System could be worth zero or a considerable value, depending on our ability to execute the strategy. My task is to control expenditures to provide AAMC the time to realize the potential of our assets. The goal is to reduce operating expenditures below $2.5 million per year and to minimize any undue risk on the balance sheet.

Inquiries have been received concerning the progress reports we have posted regarding the Alpha Control System. Specifically, the questions about these reports, which are prepared by our UK partner Seabird Limited, are largely focused on why certain portions are shown as "redacted."

To clarify, the redacted information falls into three categories:

• Potential additional claims which could potentially strengthen the patent, the public disclosure of which could jeopardize such claims.
• Sensitive commercial information that could affect our negotiation positions such as motor selection and the identification of potential counterparties.
• Preliminary scientific data upon which Seabird wishes to do further analysis to confirm accuracy.

Where are we with the Alpha Control System? We are in the commercialization phase of the project.

• First, Seabird concluded an exhaustive search of all available motors and have arrived at a final selection. This has gone better than expected and has identified an additional significant market where we can provide substantial economic benefit – delivery trucks. Seabird achieved a 16 - 24% increase in range for in-city driving. UPS drivers’ total compensation is $170,000 per annum. Making them as efficient as possible is a significant return on investment over the life of a delivery vehicle.
• Second, the demonstrator vehicle has been acquired and engineering is preparing the vehicle for before and after testing of the Alpha Control System.
• Third, the initial commercial presentation has been developed which will be iterated as we receive feedback from potential customers.

Generally, we are on track for the 9-to-18-month sales timeline. A couple of weeks ahead or behind on the various work streams. We stress that even after we sign a contract, it will be several years until Alpha will be integrated into the production process.