NorthStar Realty Finance Announces Third Quarter Dividend.

NEW YORK, Oct. 23 /PRNewswire-FirstCall/ -- NorthStar Realty Finance Corp. today announced that its Board of Directors has declared a cash dividend of $0.36 per share of common stock, payable with respect to the quarter ended September 30, 2007. The dividend is expected to be paid on November 15, 2007 to shareholders of record as of the close of business on November 7, 2007. The Company's common shares will begin trading ex-dividend on November 5, 2007.

Based on the closing price of $9.03 per share on October 22, 2007, this distribution represents an annualized dividend yield of approximately 15.9%.

About NorthStar Realty Finance Corp.

NorthStar Realty Finance Corp. is an internally managed REIT that primarily originates and invests in commercial real estate debt, real estate securities and net lease properties. For more information about NorthStar Realty Finance Corp., please visit http://www.nrfc.com/.

Safe Harbor Statement

Certain items in this press release may constitute forward-looking statements within the meaning 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 trends and uncertainties that could cause actual results to differ materially from those described in the forward- looking statements; NorthStar Realty can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from NorthStar Realty's expectations include, but are not limited to changes in economic conditions generally and the real estate and bond markets specifically, legislative or regulatory changes (including changes to laws governing the taxation of REITs), availability of capital, interest rates and interest rate spreads, policies and rules applicable to REITs, the continued service of key management personnel, the effect of competition in the real estate finance industry, the costs associated with compliance and corporate governance, including the Sarbanes-Oxley Act and related regulations and requirements, and other risks detailed from time to time in NorthStar Realty's SEC reports. Factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's Annual Report on Form 10-K for the year ended December 31, 2006. Such forward-looking statements speak only as of the date of this press release. NorthStar Realty expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

CONTACT: Investor Relations: Julie Tu for NorthStar Realty Finance Corp., [phone]

Web site: http://www.nrfc.com/