iStar Financial Inc. Prices Public Offering

November 14, 2002 at 7:04 PM EST

NEW YORK, Nov. 14 /PRNewswire-FirstCall/ -- iStar Financial Inc. (NYSE: SFI) reported today that the previously-announced public offering of 10.0 million shares of its common stock has been priced at $26.77 per share. iStar Financial is selling 8.0 million shares in the offering; Starwood Opportunity Fund IV, L.P., one of iStar Financial's shareholders, is selling 2.0 million shares in the offering. Lehman Brothers Inc., as sole book running manager, and Merrill Lynch & Co. are the joint lead managing underwriters of the offering. The Fund has also agreed to sell up to 1.5 million shares to the underwriters to cover over-allotments.

As previously announced, iStar Financial plans to use the net proceeds from the offering to repay secured debt. iStar Financial will not receive any proceeds from the sale of shares by the Fund. As part of the offering, both iStar Financial and the Fund have agreed not to sell any other common stock for 90 days, subject to customary exceptions. Assuming the underwriters' over-allotment option is exercised in full, the Fund will own approximately 20.1% of iStar Financial's common stock on a diluted basis following the offering (21.6% if the over-allotment is not exercised).

iStar Financial is the largest publicly traded finance company focused exclusively on the commercial real estate industry. The Company provides structured financing to private and corporate owners of real estate nationwide, including senior and junior mortgage debt, corporate mezzanine and subordinated capital, and corporate net lease financing. The Company, which is taxed as a real estate investment trust, seeks to deliver 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 Web site at http://www.istarfinancial.com.

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SOURCE iStar Financial Inc.

-0- 11/14/2002

/CONTACT: Spencer B. Haber, President, or Andrew C. Richardson, Senior Vice President, Capital Markets, or Erin C. Gatewood, Associate, Investor Relations, all of iStar Financial, +1-212-930-9400/