Redwood Trust, Inc. Announces New Warehouse Financing Facilities

Business Wire, July 28, 1999

MILL VALLEY, Calif.--(BUSINESS WIRE)--July 27, 1999--

Redwood Trust, Inc. (NYSE:RWT) announced today that the Company and its affiliate, RWT Holdings, Inc. ("Holdings"), obtained a $350 million committed warehouse facility from Morgan Stanley Mortgage Capital, Inc.

The committed facility was established to provide financing for Holdings' residential and commercial loan production businesses and for the Company's mortgage finance operations.

In addition to this financing transaction, Holdings has recently obtained another committed warehouse facility from First Union National Bank for $90 million.

George Bull, Chief Executive Officer of Redwood Trust, commented: "These facilities continue the process of building a strong and diversified balance sheet that will support our continued growth in the company's mortgage origination business."

Redwood Trust, together with its affiliates, is a finance company specializing in mortgage assets. Its primary activity is the financing of high quality residential mortgage loans with funds raised through long-term debt issuance. The Company also finances commercial mortgage loans and residential mortgage securities. Through its affiliate operations, the Company is developing its ability to create mortgage assets of significant value for its

own portfolio and for sale to institutional mortgage investors.

Currently the Company has outstanding 9,829,717 shares of common stock (New York Stock Exchange, Symbol "RWT") and 909,518 shares of Class B Cumulative Convertible Preferred Stock (Symbol "RWT-PB"). For more information about the Company, please visit the Company's Web site on the Internet at http://www.redwoodtrust.com.