iStar Financial Commences Offering of 7-7/8% Cumulative Redeemable Preferred Stock

July 8, 2003 at 2:15 PM EDT

NEW YORK, July 8 /PRNewswire-FirstCall/ -- iStar Financial Inc. (NYSE: SFI) announced today that it has commenced an underwritten public offering of 5,600,000 shares of its 7 7/8% Series E Cumulative Redeemable Preferred Stock. Each share of Series E Preferred Stock will have a liquidation preference of $25.00 per share. The offering is being managed by Bear, Stearns & Co. Inc.

The Series E Preferred Stock is being sold in exchange for 2,800,000 shares of iStar Financial's 9.5% Series A Cumulative Redeemable Preferred Stock, having a liquidation preference of $50.00 per share. iStar Financial will not receive any cash proceeds from the offering.

This press release does not constitute an offer to sell or a solicitation of offers to buy the stock. The offering is being made solely by means of a prospectus supplement and accompanying prospectus, copies of which will be filed with the Securities and Exchange Commission.

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, mezzanine and subordinated 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 innovative and value-added financing solutions to its customers. Additional information on iStar Financial is available on the Company's website at

SOURCE  iStar Financial Inc.
    -0-                             07/08/2003
    /CONTACT:  Catherine D. Rice, Chief Financial Officer, Andrew C.
Richardson, Executive Vice President - Capital Markets, or Erin C. Gatewood,
Associate - Investor Relations, all of iStar Financial Inc., +1-212-930-9400/
    /Web site: /

CO:  iStar Financial
ST:  New York

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