-- Doral Financial Shareholders Approve Holdings Transaction --.

-- Court Approves Settlement of Consolidated Securities Class Action and Shareholder Derivative Litigation --

-- Holdings Transaction is Expected to Close Prior to the Maturity of the Company's $625 Senior Notes --

SAN JUAN, Puerto Rico -- Doral Financial Corporation (DRL) ("Doral" or the "Company") announced today that its shareholders have approved all proposals necessary to complete the proposed $610 million recapitalization transaction with Doral Holdings Delaware, LLC ("Holdings"), a newly formed entity in which Bear Stearns Merchant Banking and other investors, including funds managed by Marathon Asset Management, Perry Capital, the D. E. Shaw group, Tennenbaum Capital Partners, Eton Park Capital Management, Goldman Sachs & Co., Canyon Capital Advisors and GE Asset Management, will invest.

Approximately 95% of the shareholders voting on the proposals, representing more than a majority of the outstanding shares, supported the proposals.

Doral further announced that it has received final court approval of the settlement agreement to settle all claims in the consolidated securities class action and shareholder derivative litigation filed against the Company following the announcement in April 2005 of the need to restate its previously issued financial statements.

Subject to satisfaction of the remaining conditions to closing, the Holdings transaction is currently expected to close on July 19, 2007, prior to the maturity of the Company's $625 senior notes on July 20, 2007.

Dennis Buchert, Chairman of the Board of Doral Financial, stated, "We are pleased that our shareholders have approved this transaction and we thank them for their support during the recapitalization process. We look forward to closing the transaction later this week and working with Holdings to move forward with our efforts to build the potential of the franchise and, in turn, value for all shareholders and the communities Doral serves."

Glen R. Wakeman, Chief Executive Officer and President, stated, "When I first addressed shareholders last October, as the new management team began at Doral, I reported that there were key issues before the company that needed to be successfully addressed for Doral to move forward. They were: recapitalizing Doral Financial; resolving the shareholder litigation; putting in place a strong and deep management team; bringing the company current on its financial reporting; establishing sound relationships with all of our regulators; and putting in place a strategy to be a competitive provider of a broad arrange of financial services and products to meet the growing needs of our customers. I am pleased to say that we have addressed or are addressing successfully all of these issues."

"Doral Financial is moving forward. It will now be able to do so with a solid balance sheet anchored by Doral Bank, which is sound financially, including by all relevant regulatory standards. We have the technology and infrastructure to enable us to strategically move to a community banking approach to better serve our customers. As such, we are a far different and stronger Doral than last October. Our ability for our company to be in this enhanced competitive position today reflects directly on the efforts and commitment of all Doral employees," Mr. Wakeman said.

FORWARD-LOOKING STATEMENTS 

Information set forth in this release contains forward-looking statements, which involve a number of risks and uncertainties. Doral cautions readers that any forward-looking information is not a guarantee of future events or performance and that actual events and performance could differ materially from that contemplated by the forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the transaction and the likelihood of satisfying the conditions thereto, and the future results of the Company following the recapitalization, if completed.

The closing of the transaction is still subject to a number of conditions. The following factors, among others, could cause actual events or results to differ from those set forth in the forward-looking statements: the risk that the general partners of Holdings do not receive the regulatory confirmations specified in the stock purchase agreement, the risk that, because of adverse events affecting Doral or its business or otherwise, that one or more conditions to obligations of Holdings to make its investment will not be obtained, the risk that one of more of the investors will fail to fund their investment in Holdings and thus prevent Holdings from consummating its investment in the Company, and the risk that the transaction or uncertainties with respect thereto could adversely affect customer relationships or otherwise adversely affect the Company or its business. Additional factors that may affect future results are contained in the Company's annual report on Form 10-K for the year ended December 31, 2006 and quarterly report on Form 10-Q for the first quarter of 2007, which are available at the SEC's web site at http://www.sec.gov.