NEW YORK, Sept. 7 /PRNewswire-FirstCall/ -- NorthStar Realty Finance Corp. (NYSE:NRF) announced today that it has priced an underwritten public offering of 2,200,000 shares of 8.75% Series A Cumulative Redeemable Preferred Stock at a price of $25.00 per share.

Wachovia Securities is the sole book-running manager for the offering, with Banc of America Securities LLC acting as joint lead manager. KeyBanc Capital Markets and Stifel Nicolaus are acting as co-managers for the offering. The underwriters have been granted a 30-day over-allotment option to purchase up to an additional 330,000 shares of 8.75% Series A Cumulative Redeemable Preferred Stock.

The offering of the shares of 8.75% Series A Cumulative Redeemable Preferred Stock will be made only by means of a prospectus supplement and accompanying prospectus. When available, copies of the prospectus supplement and accompanying prospectus may be obtained from Wachovia Securities, ATTN: Prospectus Department, 8739 Research Drive, Charlotte, North Carolina 28262, or by calling 800-326-5897.

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.

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 April 26, 2006 and prospectus supplement dated September 5, 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.

Source: NorthStar Realty Finance Corp.