iStar Financial Commences Offering of Senior Notes

December 3, 2003 at 5:01 PM EST

NEW YORK, Dec. 3 /PRNewswire-FirstCall/ -- iStar Financial Inc. (NYSE: SFI) has commenced an offering of $250 million of Senior Notes due December 2010. The offering is being managed by Deutsche Bank Securities, as the sole book-running lead manager, Banc of America Securities LLC as a co-lead manager, and Bear, Stearns & Co. Inc., Fleet Securities, Inc., Goldman, Sachs & Co., and Lehman Brothers as co-managers.

The Notes will be unsecured senior obligations of iStar Financial. The net proceeds of the offering will be used to repay existing secured indebtedness.

This press release does not constitute an offer to sell or a solicitation of offers to buy the Notes. 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 and can be obtained from Deutsche Bank Securities Inc., 60 Wall Street, New York, New York 10005, Attn: Prospectus Department.

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-                             12/03/2003
    /CONTACT:  Catherine D. Rice, Chief Financial Officer, or Erin C.
Gatewood, Associate - Investor Relations, or Andrew C. Richardson, Executive
Vice President - Capital Markets, all of iStar Financial, +1-212-930-9400/
    /Web site: /

CO:  iStar Financial Inc.
ST:  New York

-- NYW165 --
6201 12/03/2003 17:00 EST