Crystal River Reports Second Quarter 2008 Financial Results

Market Wire, August, 2008

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                         Consolidated
                          Outstanding    Consolidated
($ in millions)           Face Amount  Carrying Value     CDO I     CDO II
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CMBS                     $      523.8    $      185.4  $   39.7  $   145.7
Prime RMBS                       94.3            19.6      19.6          -
Subprime RMBS                    74.2            10.5      10.5          -
Collateralized debt
 obligations                   (480.3)         (204.8)    (48.2)    (156.6)
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Net Equity               $      212.0    $       10.7  $   21.6  $   (10.9)
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OTHER INFORMATION

The Company will file its Form 10-Q for the quarter ended June 30, 2008 with the Securities and Exchange Commission by 5:30 p.m. EDT on Monday, August 11, 2008. Please read the Form 10-Q carefully as it contains Crystal River's consolidated financial statements and notes thereto and Management's Discussion and Analysis of Financial Condition and Results of Operations. The Form 10-Q also will be made available under the Investor Relations section of Crystal River's website at www.crystalriverreit.com .

Definition of Operating Earnings

This press release and accompanying financial information make reference to Operating Earnings on a total and per share basis. The Company considers its Operating Earnings to be income after operating expenses but before loan loss provisions, realized and unrealized gains and losses, hedge ineffectiveness, foreign currency exchange impact, loss on impairment of assets and commercial real estate depreciation and amortization. The Company believes Operating Earnings provides useful information to investors because it views Operating Earnings as an effective indicator of the Company's profitability and financial performance over time. Operating Earnings can and will fluctuate based on changes in asset levels, funding rates, available reinvestment rates, expected losses on credit-sensitive positions and the return on the Company's investments as the underlying assets are carried at estimated fair value. The Company has provided the components of Operating Earnings and a full reconciliation from net income (loss) to Operating Earnings with the financial statements accompanying this press release. Operating Earnings is a non-GAAP measure that does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.

Definition of Net Investment Income

This press release and accompanying financial information make reference to Net Investment Income on a total and per share basis. The Company considers its Net Investment Income to be total revenues including income from equity investments less interest expense. The Company believes Net Investment Income provides useful information to investors because it represents the largest component of the Company's Operating Earnings, which management believes is an effective indicator of the Company's profitability and financial performance over time. The Company provides the components of Net Investment Income with the financial statements accompanying this press release. Net Investment Income is a non-GAAP measure that does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.