Redwood Trust Inc. announces the public offering of 1,250,000 shares of common stock

Business Wire, Nov 18, 1996

MILL VALLEY, Calif.--(BUSINESS WIRE)--Nov. 18, 1996--Redwood Trust Inc. (NASDAQ: RWTI) today announced the public offering of 1,250,000 shares of common stock at an offering price of $31.75 per share.

Upon the close of this stock offering and committed asset acquisitions, the company's equity base of approximately $200 million will be fully employed under the company's capital guidelines.

The offering was managed by Montgomery Securities and is scheduled to close on Nov. 22, 1996.

A written prospectus supplement supplement prepared in connection with this offering may be obtained by calling the company at 415/389-7373 or by writing Frederick H. Borden, Secretary, Redwood Trust, Inc., 591 Redwood Highway, Suite 3100, Mill Valley, CA 94941.

This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sales of these securities in any state in which such offer, solicitation or sales would be unlawful prior to registration or qualification under the securities laws of any such state.

Redwood Trust Inc. specializes in acquiring and managing real estate mortgage assets throughout the United States, with an emphasis on variable rate single-family mortgages on properties located in California. Its mortgage asset acquisitions are financed by a combination of equity and proceeds from borrowings.

The company's principal source of earnings is the interest income generated from mortgage assets acquired with equity and the net interest income generated from managing the spread between the cost of the company's borrowings and income from mortgage assets acquired with such borrowings.

The company is a real estate investment trust (REIT). Currently, the company has outstanding 9,138,872 shares of common stock (NASDAQ: RWTI), 1,019,764 Warrants (Symbol "RWTIW") and 1,006,250 shares of Class B Cumulative Convertible Preferred Stock (Symbol "RWTIP").

CONTACT: Redwood Trust, Inc.

George Bull, 415/389,7373