Crystal River Reports Fourth Quarter And Full Year 2008 Financial Results

Market Wire, February, 2009

At December 31, 2008, Crystal River's CRE investment portfolio totaled $231.5 million. The CRE portfolio consists of three high-quality office buildings 100% leased on a triple-net basis to JPMorgan Chase. The buildings are financed with long-term fixed-rate mortgage loans.

CRE investment portfolio at December 31, 2008:

----------------------------------------------------------------------------
                            Year    Total
                              of     Area       Book   Mortgage   Net Book
                           Lease    (000s   Value (1)      Debt     Equity
Location           Tenant Expiry  Sq. Ft.) (Millions) (Millions) (Millions)
----------------------------------------------------------------------------
Houston,
 Texas     JPMorgan Chase   2021    428.6     $ 60.3     $ 53.4      $ 6.9
Arlington,
 Texas     JPMorgan Chase   2027    171.5       21.4       20.9        0.5
Phoenix,
 Arizona   JPMorgan Chase   2021    724.0      149.8      145.1        4.7
----------------------------------------------------------------------------
Total CRE                         1,324.1    $ 231.5    $ 219.4     $ 12.1
----------------------------------------------------------------------------
(1) Book value includes intangible assets and intangible liabilities, but
    excludes rent-enhancement and straight-line rent receivables.

REAL ESTATE LOAN INVESTMENT PORTFOLIO

At December 31, 2008, Crystal River's real estate loan portfolio, which consists of two mezzanine loans (one of which is held for sale), a construction loan and a whole loan, totaled $14.1 million and had a weighted average interest rate of 9.3%. Crystal River recorded a $6.2 million loan loss allowance on its real estate loan holdings during the quarter ended December 31, 2008. Finally, the Company sold a mezzanine loan for $11.4 million in the fourth quarter of 2008 that the Company had previously designated for sale. The proceeds from the sale were used to repay debt.

Real estate loan portfolio at December 31, 2008:

----------------------------------------------------------------------------
              Mezzanine      Construction
($ in           Loans           Loans           Whole Loans    Total / WA(1)
 millions)   Fixed Floating  Fixed Floating  Fixed Floating  Fixed Floating
----------------------------------------------------------------------------
Outstanding
Face
 Amount     $ 17.2      $ -  $14.6      $ -    $ -    $ 2.5 $ 31.8    $ 2.5

Carrying
 Value        11.2        -    0.4        -      -      2.5   11.6      2.5

Amortized
 Cost         17.2        -   14.6        -      -      2.5   31.8      2.5

Fair Value    11.0        -    0.4        -      -      2.2   11.4      2.2

Number of
 Loans           2        -      1        -      -        1      3        1
Number of
 loans that
 are
 delinquent      -        -      1        -      -        -      1        -

WA Fixed
 Rate        10.06%       -  16.00%(3)    -      -      n/a  10.06%(4)  n/a
WA Floating
 Rate:
Spread
 over
 LIBOR(2)      n/a        -    n/a        -      -     3.25%   n/a     3.25%
----------------------------------------------------------------------------
(1) Weighted Average ("WA").
(2) London Interbank Offered Rate ("LIBOR").
(3) Construction loan has been placed on non-accrual status.
(4) Excludes 16.00% WA fixed rate for construction loan.