Colony Financial Announces Launch of Offering of Additional Shares of Series A Cumulative Redeemable Perpetual Preferred Stock

Colony Financial, Inc. (the "Company")

today announced it has commenced an underwritten public offering of additional shares of its shares of Series A Cumulative Redeemable Perpetual Preferred Stock with liquidation preference of $25 per share. Barclays Capital Inc, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC and UBS Securities LLC are acting as joint book-running managers for the offering. RBC Capital Markets, LLC and Stifel, Nicolaus & Company, Incorporated are acting as co-managers. The Company expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of Series A Cumulative Redeemable Perpetual Preferred Stock initially sold to the public to cover overallotments, if any. The outstanding shares of Series A Cumulative Redeemable Perpetual Preferred Stock currently trade on the New York Stock Exchange under the symbol "CLNYPrA". The Company will apply to list the additional shares on the New York Stock Exchange under the same symbol.