Doral Financial Corporation Declares Cash Dividend on Four Series of Preferred Stock

Business Wire, Dec 14, 2006

SAN JUAN, Puerto Rico -- Doral Financial Corporation (NYSE: DRL), a diversified financial services company, today announced that, on December 11, 2006, the Board of Directors approved the regular monthly cash dividend on the Company's 7% Noncumulative Monthly Income Preferred Stock, Series A (the "Series A Preferred Stock"), 8.35% Noncumulative Monthly Income Preferred Stock, Series B (the "Series B Preferred Stock") and 7.25% Noncumulative Monthly Income Preferred Stock, Series C (the "Series C Preferred Stock"), in the amount of $0.2917, $0.173958, $0.151042 per share. The dividend is payable on December 29, 2006 to the record holders as of the close of business on December 27, 2006 in the case of the Series A Preferred Stock, and to the record holders as of the close of business on December 15, 2006 in the case of Series B and Series C Preferred Stock.

Doral also announced that the quarterly dividend on the Company's 4.75% perpetual cumulative convertible preferred stock, in the amount of $2.96875 per share, which had been approved by the Board of Directors on October 27, 2006, will be paid on December 15, 2006 to holders of record as of the close of business on December 1, 2006.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. In addition, Doral Financial may make forward-looking statements in its press releases or in other public or shareholder communications and its senior management may make forward-looking statements orally to analysts, investors, the media and others. These "forward-looking statements" are identified by the use of words or phrases such as "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project" or similar expressions.

Doral Financial cautions readers not to place undue reliance on any of these forward-looking statements since they speak only as of the date made and represent Doral Financial's expectations of future conditions or results and are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following:

* Doral Financial's ability to attract new clients and retain existing clients;

* Doral Financial's ability to retain and attract key employees;

* Doral Financial's ability to successfully implement new business strategies;

* potential adverse developments from ongoing enforcement actions by bank regulatory agencies;

* potential adverse developments in connection with ongoing shareholder litigation against Doral Financial;

* risks and uncertainties associated with the refinancing of the Company's $625 million floating rate notes due July 2007;

* Doral Financial's ability to derive sufficient income to realize the benefits of its deferred tax asset;

* risks associated with the effects of global, national and regional economic and political conditions, including with respect to fluctuations in interest rates;

* risks arising from worsening economic conditions in Puerto Rico;

* potential adverse developments in connection with the ongoing grand jury investigation by the U.S. Attorney's Office for the Southern District of New York;

* risks associated with Doral Financial's inability to prepare and timely file financial statements;

* risks arising from the downgrade and potential further downgrades in the credit ratings of Doral Financial's securities;

* risks arising from material weaknesses in the Company's internal control over financial reporting; and

* developments from changes in the regulatory and legal environment for financial services companies in Puerto Rico and the United States.

The Company does not undertake and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of those statements.