Izard Nobel LLP Announces Class Action Lawsuit against KKR Financial Holdings, LLC

Business Wire, August 8, 2008

HARTFORD, Conn. -- The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased the common stock of KKR Financial Holdings, LLC ("KFN" or the "Company") (NYSE: KFN) pursuant to the Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with its May 4, 2007 merger and share issuance ("Merger").

The Complaint charges that KFN and certain of its officers and directors violated federal securities laws by issuing materially false statements. Specifically, it is alleged that, the Registration Statement was false and misleading in that it misrepresented and/or omitted material facts, including: (i) the problematic real-estate-related assets held by the Company were a much bigger risk to the Company than the Registration Statement had represented; (ii) the Company's capital would be insufficient given the deterioration in its portfolio which would necessitate capital preservation and the need to raise capital to the detriment of common stockholders; and (iii) the Company was failing to adequately record loss reserves for its mortgage-related exposure, causing its balance sheet and financial results to be artificially inflated.

If you are a member of the class, you may, no later than October 6, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Izard Nobel LLP toll-free at (800) 797-5499, or by e-mail at firm@izardnobel.com, or visit our website: www.izardnobel.com.