Centerline Capital Group Expands Its Credit Risk Products Group.

New Business Initiative to Include CLO Portfolio Management

NEW YORK -- Centerline Holding Company (NYSE:CHC), the parent company of Centerline Capital Group (the "Company"), today announced it hired John Trentos, a seasoned leveraged finance executive and portfolio manager, as a Managing Director and Senior Portfolio Manager in its Credit Risk Products Group. Mr. Trentos joins Centerline to lead the Company's new initiative into the CLO (collateralized loan obligation) business. Mr. Trentos reports to Nicholas A.G. Mumford, Executive Managing Director and Head of the Credit Risk Products Group.

"Our strategy is to accumulate a highly diversified portfolio of non-investment grade commercial and industrial loans and securitize them through a series of CLOs," said Mr. Mumford. "With Centerline's purchase of ARCap in August, 2006, we currently monitor over 300 companies in 25 industries in connection with tenant credit. In combination with our experience as a highly-rated servicer, the CLO strategy is a natural overlay of our core competencies."

The CDO industry in the US is less than 20 years old but in the last 10 years it has emerged as the fastest growing sector in the asset-backed securities market. CLOs are similar structured finance products to CDOs, but are backed by commercial loans. According to JP Morgan research, the global CLO market was nearly $106 billion in 2006. At $30 billion as of May, 2007, the CLO market is moving at a rate expected to exceed last year's volume.

Centerline expects to begin aggregating loans on the Company's balance sheet in the third quarter of 2007, with the potential for the first CLO issuance in the first quarter of 2008. Once the Company has gained market acceptance as a CLO issuer, it expects to retain only a small portion of the CLO equity.

Mr. Trentos comes to Centerline Capital Group from Sandelman Partners LP where he was Senior Portfolio Manager of a $3-billion credit book. Prior to that, he was with GE Capital Corporation in capital markets structuring for 11 years. Mr. Trentos received a Bachelor of Arts degree in economics from York University and a Master of Business Administration degree from Columbia University Business School.

About Centerline Capital Group

Centerline Capital Group, a subsidiary of Centerline Holding Company (NYSE:CHC), lends, invests and manages capital for the real estate industry. Centerline Capital Group is headquartered in New York, New York and has over 500 employees in nine offices throughout the United States. For more information, please contact Elizabeth Haukaas at 212-521-6453 or visit Centerline's website at http://www.centerline.com.

Certain statements in this document may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are detailed in Centerline Holding Company's most recent Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission, and include, among others, adverse changes in the real estate markets; interest rate fluctuations; general economic and business conditions; environment/safety requirements; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; risk of default associated with the mortgage revenue bonds and other securities held by us or our subsidiaries; risks associated with providing credit intermediation; risk of loss under mortgage banking loss sharing agreements; risk of loss from direct and indirect investments in CMBS; risk that relationships with key investors and developers may not continue; our ability to generate fee income may not continue; and risks related to the form and structure of our financing arrangements. Such forward-looking statements speak only as of the date of this document. Centerline Holding Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline Holding Company's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.