iStar Financial Inc. (NYSE: SFI) announced today that it has engaged J.P. Morgan to arrange up to $3.0 billion in new senior secured credit facilities, the proceeds of which would be used to refinance the Company’s secured loan facilities due to mature in June 2011 and 2012, as well as repay a portion of the Company’s unsecured debt maturing in 2011. ┬áThe proposed new credit facilities may be divided into tranches with differing interest rates and maturity dates. Under the proposed terms of the new credit facilities, outstanding borrowings are expected to be secured by a first lien on a diversified collateral pool comprised primarily of performing loans and corporate tenant lease assets.

While marketing for the transaction has commenced, the Company cautions that it has not yet received commitments for the new credit facilities and there can be no assurance that the preliminary terms described above will not change materially, or that the Company will be successful in its efforts to complete the new credit facilities or alternative financing to address its near-term debt maturities.

iStar Financial Inc. is a publicly traded, fully-integrated finance and investment company focused on the commercial real estate industry. The Company provides custom-tailored investment capital to high-end private and corporate owners of real estate and invests across a range of real estate sectors. The Company is taxed as a real estate investment trust (“REIT”). Additional information on iStar Financial is available on the Company’s website at www.istarfinancial.com.

CONTACT: David M. DiStaso, Chief Financial Officer, or Jason Fooks, Investor Relations, both of iStar Financial Inc., +1-212-930-9400

Web Site: http://www.istarfinancial.com

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