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08/11/2005

iStar Financial to be Included in Lehman Brothers U.S. Credit Finance, Non-Captive, Diversified Bond Index

NEW YORK, Aug. 11 /PRNewswire-FirstCall/ -- iStar Financial Inc. (NYSE: SFI), the leading publicly traded finance company focused on the commercial real estate industry, today announced that effective Monday, August 15, 2005, the Company will be classified in the "Finance, Non-Captive, Diversified" category within the Lehman Brothers U.S. Credit Index.

Until the close of the market on Friday, August 12, the Company will continue to be included in the "Finance, REITs" category within the Lehman Brothers U.S. Credit Index.

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 http://www.istarfinancial.com.

SOURCE iStar Financial Inc.

CONTACT:
Catherine D. Rice
Chief Financial Officer

Andrew C. Richardson
Executive Vice President -- Capital Markets

Andrew G. Backman
Vice President -- Investor Relations
all for iStar Financial Inc.
212-930-9400

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