Colony Capital Enters Joint Venture with Hanmi Technology Investment Corp. and Sonnenblick-Goldman Company; Horizon Capital Advisors Created as Asset Manager.

Business Editors

SEOUL, Korea--(BUSINESS WIRE)--April 17, 2000

Colony Capital, Inc., a private international investment firm, announced today that it has signed a joint venture agreement with Sonnenblick-Goldman Company and Hanmi Technology Investment Corp. (HTIC CRC) to form Horizon Capital Advisors, a Korean asset management company that will provide global and domestic market expertise for the resolution, restructuring and re-capitalization of Korean assets. Colony will be the lead investor in Horizon.

Horizon will manage assets purchased by Sonnenblick Goldman KAMCO Investors LLC., a fund management company (FMC) established with the Korea Asset Management Corporation (KAMCO). The US$270 million FMC is a 50/50 (US$135 million each) joint venture between Horizon and KAMCO, and is the first FMC to receive an equity investment from KAMCO. The FMC, in turn, will establish corporate restructuring companies (CRCs), or other special purpose vehicles, to buy and sell assets of companies subject to corporate restructurings.

TY Kim, Chief Executive Officer of HTIC CRC, will oversee the day-to-day operations of the new venture. Yong Han Lee, President of Won Ik Corporation, a major shareholder in HTIC CRC, will be Chairman of the Board. The Board of Directors of Horizon Capital Advisors will be comprised of seven members, with Colony holding three seats, HTIC CRC holding three seats and Sonnenblick-Goldman holding one. Horizon will be located in Kangnam-ku, Seoul.

"This investment is consistent with our strategy to align ourselves with leading partners, like KAMCO and HTIC CRC, throughout Asia. With the support and commitment of the Korean Government led by President Kim Daejung, KAMCO has been instrumental in turning around the Korean economy through its timely purchase of nonperforming loans," stated Tom Barrack, Chairman and CEO of Colony Capital, Inc. "Our goal is to bring our capital, experience and technology to conduct restructurings in a way that is most beneficial to our partners, the borrowers, financial institutions and the Korean Government. Through the FMC structure, KAMCO shares equally in our successes in resolving the assets we will manage."

"As a long term-strategic investor, Colony offers the benefits of its expertise in facilitating the rescue, re-capitalization and restructuring of companies and real estate assets," stated TY Kim, CEO of HTIC CRC. "Coupled with our network of local alliances and Sonnenblick-Goldman's banking experience, we believe the joint venture is well positioned to assist in the rejuvenation of the Korean economy."

Kim continued, "Colony was one of the first firms to purchase assets from the Resolution Trust Corporation in the United States to address the savings and loan crisis. The firm understands the sensitivities of purchasing troubled financial assets in a recovering economy and will support our efforts to work with borrowers to resolve outstanding loans."

"Sonnenblick-Goldman Company has been active in Asia for many years and is honored to have been designated by KAMCO as a joint venture partner for this important Korean initiative," stated David Bloom, Director of Sonnenblick-Goldman. "Until the financial crisis, which effectively halted Asian investment internationally, we were involved in bringing capital from Asia to the U.S. The establishment of this venture, which sources U.S. capital into Asia, evidences the reversal of this trend. Furthermore, the participation of a firm as prominent as Colony demonstrates the growing confidence of the U.S. investment community in the overall recovery of the Asian economy."

Colony Capital is a private, international investment firm led by Thomas J. Barrack, Jr., Chairman and Chief Executive Officer. Since its formation in 1991, Colony has been one of America's most active and innovative investors, investing in excess of US$6 billion in more than 60 distinct corporate, property, and portfolio transactions. The firm is headquartered in Los Angeles, with offices in Singapore, its regional headquarters for the Asian Pacific region, Seoul, Tokyo, New York, Fort Worth (Texas), Hawaii, and Paris, France.

Previous Colony investments in Asia include Kerry Properties Limited, a Hong Kong-based real estate development company led by Robert Kuok; a controlling ownership in Amanresorts, the Asian-based chain of luxury resorts; and a significant commitment to purchase and manage non-performing loans in Korea, Japan and Thailand.

Sonnenblick-Goldman Company is the industry's leading independent real estate investment banking firm. Founded in 1893 to serve the financing needs of the real estate industry, Sonnenblick-Goldman Company provides a full range of real estate financial services including debt and equity placements, joint ventures, investment sales and real estate advisory services. Headquartered in New York, Sonnenblick-Goldman Company maintains offices in Denver, Hong Kong, Miami, San Francisco, Singapore, Tokyo and Washington, D.C.

HTIC CRC is an affiliate of HTIC, one of the fastest growing, most innovative and respected venture capital firms in Korea. HTIC CRC will provide the local knowledge and expertise in understanding the economic dynamics of the financial and industrial sector of Korea.