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Investment Vehicles Managed by Colony Capital, LLC, Including Colony Financial, Inc., Complete Acquisition of Approximately $1.02 Billion in Loans from the FDIC

LOS ANGELES--(BUSINESS WIRE)--Investment vehicles managed by Colony Capital, LLC, a private, international investment firm, including Colony Financial, Inc. (NYSE: CLNY), a real estate finance company focused on acquiring, originating and managing commercial mortgage loans (together, "Colony"), today announced the consummation of a structured transaction with the Federal Deposit Insurance Corporation ("FDIC").

"Colony is honored to be selected to partner with the FDIC again, and we look forward to working with the FDIC over the coming years and resolving this portfolio," said Thomas J. Barrack, Jr., Founder, Chairman and CEO of Colony Capital, LLC and Chairman of Colony Financial, Inc.

The transaction includes approximately 1,200 loans with an aggregate unpaid principal balance of approximately $1.02 billion, consisting of substantially all commercial real estate loans. Deutsche Bank served as advisor to the FDIC on the sale to Colony of a 40% managing member equity interest in a newly formed limited liability company created to hold the acquired loans, with the FDIC retaining the remaining 60% equity interest. The portfolio was effectively acquired at approximately 44% of the unpaid principal balance of the loans, with a purchase price by Colony of approximately $90.5 million (net of working capital and transaction costs) for its 40% equity interest. The financing of the transaction includes $233 million of notes provided by the FDIC.

About Colony Capital, LLC
Founded in 1991 by Chairman and Chief Executive Officer Thomas J. Barrack, Jr., Colony Capital is a private, international investment firm focusing primarily on debt and equity investments in real estate-related assets and operating companies. The firm has invested more than $39 billion in over 8,800 assets through various corporate, portfolio and complex property transactions. Colony has a staff of more than 200 and is headquartered in Los Angeles, with offices in New York, Boston, London, Madrid, Paris, Rome, Beirut, Hong Kong, Beijing, Tokyo, Seoul and Taipei. For more information, visit www.colonyinc.com.

About Colony Financial, Inc.
Colony Financial is a real estate finance company that will focus primarily on acquiring, originating and managing commercial mortgage loans, which may be performing, sub-performing or non-performing loans (including loan-to-own strategies), other commercial real estate-related debt investments, CMBS, REO properties and other real estate-related assets. Colony Financial intends to elect and qualify to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes. For more information, visit www.colonyfinancial.com.

Forward-Looking Statements of Colony Financial, Inc.
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond Colony Financial's control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. Statements regarding the following subjects, among others, may be forward-looking: the use of proceeds of Colony Financial's initial public offering; and Colony Financial's ability to maintain its qualification as a REIT for U.S. federal income tax purposes.

All forward-looking statements reflect Colony Financial's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, Colony Financial disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause Colony Financial's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in Colony Financial's final prospectus relating to Colony Financial's initial public offering filed with the Securities and Exchange Commission on September 24, 2009, and other risks described in documents subsequently filed by Colony Financial from time to time with the Securities and Exchange Commission.

Contacts
Investor Contact:
Colony Financial, Inc.
Darren Tangen
Chief Financial Officer
(310) 552-7230
or
Addo Communications, Inc.
Andrew Blazier
(310) 829-5400
andrewb@addocommunications.com
or
Media Contact:
Owen Blicksilver P.R., Inc.
Kristin Celauro
(732) 433-5200
kristin@blicksilverpr.com

Source: Colony Financial, Inc.