Total dividends paid by the Colony Financial, Inc. ("the Company") for 2009 represent distributions of ordinary taxable income. These distributions of ordinary taxable income are not eligible for the tax rate reductions enacted for qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003 and are accordingly being reported as non-qualifying dividends. The Company had no distributions of capital gains.

Tax Disclaimer
The tax information above should not be construed as tax advice and is not a substitute for careful tax planning and analysis. You should consult your own tax advisor regarding the specific federal, state, local, foreign and other tax consequences to you regarding your ownership of shares of the Company's common stock.