NorthStar Realty Finance Announces Offering of Common Stock


NEW YORK, May 15, 2006 (PRIMEZONE) -- NorthStar Realty Finance Corp. (NYSE:NRF) announced today that it plans a public offering of approximately 10 million shares of its common stock. In connection with the offering, the Company intends to grant the underwriters an option to purchase up to an additional 1,576,461 shares to cover over-allotments. Selling stockholders unaffiliated with the Company will sell an additional 509,740 shares of common stock in the offering.

The joint book-running managers for the offering are Citigroup Corporate and Investment Banking and Lehman Brothers.

A shelf registration statement relating to the shares to be offered has been filed with the Securities and Exchange Commission and has become effective.

The Company intends to use the net proceeds received by it in this offering to originate and acquire investments relating to its business, to repay indebtedness and for general corporate purposes. The Company will not receive any proceeds from the sale of the shares by the selling stockholders.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the offered shares, and none of these shares may be sold in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The offering may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained when available from Citigroup Corporate and Investment Banking, 140 58th Street, 8th Floor, Brooklyn, New York 11220 (telephone number: 718-765-6732) or from Lehman Brothers c/o ADP Financial Services, Prospectus Fulfillment, 1155 Long Island Avenue, Edgewood, NY 11717. Email: monica_castillo@adp.com, Fax (631) 254-7268.

About NorthStar Realty Finance Corp.

NorthStar Realty Finance Corp. is an internally managed REIT that originates and invests in commercial real estate debt, real estate securities and net lease properties.

Forward Looking Statements

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. NorthStar Realty can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from NorthStar Realty's expectations include, but are not limited, to changes in economic conditions generally and the real estate and bond markets specifically, legislative or regulatory changes (including changes to laws governing the taxation of REITs), availability of capital, interest rates and interest rate spreads, policies and rules applicable to REITs, the continued service of key management personnel, the effect of competition in the real estate finance industry, the costs associated with compliance and corporate governance, including the Sarbanes-Oxley Act and related regulations and requirements, and other risks detailed from time to time in NorthStar Realty's periodic reports filed with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this press release. Additional information concerning these and other important risks and uncertainties can be found under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2005, under the heading "Risk Factors" in the Company's prospectus dated March 31, 2006 and prospectus supplement dated May 15, 2006. NorthStar Realty expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.



            

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