Doral Financial Corporation Successfully Signs Asset Transaction

Doral Financial Corporation

("Doral", "Doral Financial" or the "Company"), a financial services company and holding company of Doral Bank, with operations in Puerto Rico and the U.S., announced today the sale of a significant amount of its non-performing assets for $369 million, a move that will allow the Company to improve its financial position -- by reducing risk and improving its liquidity -- and move forward with the rest of its restructuring plan. "This transaction is a key component of our plan to strengthen the Company by restructuring our balance sheet. Eliminating these non-performing assets goes a long way to achieving our goals by reducing our risk exposure, improving our liquidity, reducing our carrying costs of problem assets, and putting our Company in a better position to complete our transformation. Shedding a significant part of our portfolio that was not performing adequately makes us leaner and stronger so that we may move forward with our restructuring plans while we continue to serve our clients and fulfill our commitments to our employees and shareholders," said Glen Wakeman, Doral Financial Corporation CEO and President. The Company's Board of Directors was advised by Houlihan Lokey. The closing of the transaction is subject to regulatory approval. Doral Financial Corporation is a bank holding company engaged in banking, mortgage banking and insurance agency activities through its wholly-owned subsidiaries Doral Bank, with operations on the mainland U.S. (New York metropolitan area and northwest region of Florida) and Puerto Rico. Doral Financial Corporation's common shares trade on the New York Stock Exchange under the symbol DRL. Additional information about Doral Financial Corporation may be found on the Company's website at www.doralfinancial.com