Crystal River Capital, Inc. Announces Closing of Initial Public Offering of Common Stock.

NEW YORK -- Crystal River Capital, Inc. (NYSE: CRZ) today announced the closing of its previously announced underwritten initial public offering of common stock. A total of 7,500,000 shares were sold at a price of $23.00 per share. Net proceeds to Crystal River, after underwriting discounts but before expenses, totaled approximately $162.4 million.

The offering was led by Deutsche Bank Securities Inc. and Wachovia Securities acting as joint book-running managers, and Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, UBS Securities LLC, A.G. Edwards & Sons, Inc. and RBC Capital Markets Corporation, acting as co-managers. A copy of the final prospectus relating to the offering may be obtained from: Deutsche Bank Securities Inc., 60 Wall Street, New York, New York 10005, Attention: Syndicate Department or Wachovia Capital Markets, LLC, 375 Park Avenue, New York, New York 10152, Attention: Syndicate Department.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction or state.

About Crystal River

Crystal River, a specialty finance company that will elect to be taxed as a REIT for federal income tax purposes, invests primarily in residential mortgage-backed securities, commercial mortgage-backed securities, whole mortgage loans, bridge loans, junior interests in mortgage loans known as B Notes, mezzanine loans and other real estate-related assets.