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iStar Financial Announces Final Results of Bond Exchange for TriNet Corporate Realty Trust 7.70% Senior Notes due 2017

NEW YORK, Feb 25, 2005 /PRNewswire-FirstCall via COMTEX/ -- iStar Financial Inc. (NYSE: SFI), the leading publicly traded finance company focused on the commercial real estate industry, and its subsidiary TriNet Corporate Realty Trust, Inc., announced today the final results of its offer to exchange iStar Financial Inc. 5.70% Series B Senior Notes due 2014 for any and all of TriNet's 7.70% Senior Notes due 2017. The exchange offer was launched on January 25, 2005 and expired at 12:00 Midnight, New York City time, on February 24, 2005.

A total of $99.953 million aggregate principal amount of existing TriNet 7.70% Senior Notes have been validly submitted and accepted for exchange corresponding to 99.95% of the total outstanding amount of TriNet Notes. As previously announced, for each $1,000 principal amount of TriNet Notes, a tendering holder will receive $1,171.01 principal amount of iStar Notes, rounded down to the nearest $1,000 principal amount, plus cash for any residual amount. The settlement date for the issuance of the iStar Notes is March 1, 2005.

Results of the offering:
* Final aggregate principle amount of the TriNet Notes accepted for
exchange: $99.953 million * Exchange Spread: 142.5 basis points over 4.25% U.S. Treasury Notes due November 15, 2014
* Exchange Price of TriNet Notes: $1,184.39, inclusive of $20.00 consent amount
* New Issue Spread: 125 basis points over 4.25% U.S. Treasury Notes due November 15, 2014
* New Issue Coupon: 5.70%
* New Issue Price: $1,011.43
* Exchange Ratio: 1.171005
* Settlement Date: March 1, 2005
* Maturity date of New Issue: March 1, 2014

Bear, Stearns & Co. Inc. is acting as dealer manager in connection with the Exchange Offer and Consent Solicitation. Questions regarding the Exchange Offer may be directed to Bear, Stearns & Co. Inc., Global Liability Management Group, at (877) 696-BEAR (2327) (U.S. toll-free).

Copies of offer materials can be obtained from Georgeson Shareholder at 17 State Street, 10th Floor, New York, NY 10004, by telephone at (866) 873-6993.

This announcement is not an offer of iStar Notes or a solicitation of consents with respect to the TriNet Notes. The exchange offer and consent solicitation is being made solely by a Prospectus dated February 10, 2005, and a form of Consent and Letter of Transmittal that accompanied the original Prospectus dated January 25, 2005.

iStar Financial is the leading publicly traded finance company focused on the commercial real estate industry. The Company provides custom-tailored financing to high-end private and corporate owners of real estate nationwide, including senior and junior mortgage debt, senior and mezzanine corporate capital, and corporate net lease financing. The Company, which is taxed as a real estate investment trust, seeks to deliver a strong dividend and superior risk-adjusted returns on equity to shareholders by providing the highest quality financing solutions to its customers. Additional information on iStar Financial is available on the Company's website at

SOURCE iStar Financial Inc.

Catherine D. Rice, Chief Financial Officer, or Andrew C. Richardson, Executive Vice President - Capital Markets, or Andrew G. Backman, Vice President - Investor Relations, all of iStar Financial Inc., +1-212-930-9400