NewStar Reports Full Year and Fourth Quarter Results

Results Reflect Strong Origination and Fee Income Growth
* $4.6 million of adjusted net income in the fourth quarter or $0.18
   adjusted earnings per diluted share
* $11.9 million of adjusted net income for the year or $0.70 adjusted
   earnings per diluted share
* $32.1 million net loss in the fourth quarter or $1.26 net loss per
   diluted share
* $27.2 million net loss for the year or $1.65 net loss per diluted
   share
* $2.0 billion of assets in managed loan portfolio, up $575 million
   from the third quarter
* $234.6 million initial public offering completed on December 13,
   2006
* Credit quality stable, no loans on non-accrual status, no charge
   offs
 
BOSTON, Feb. 21, 2007 (PRIME NEWSWIRE) -- NewStar Financial, Inc.
(Nasdaq:NEWS), today reported adjusted earnings for the fourth
quarter 2006 of $4.6 million, or $0.18 per diluted share. Adjusted
net income for the full year 2006 was $11.9 million, or $0.70 per
diluted share. On a GAAP basis, the company reported a net loss of
$32.1 million, or $1.26 per diluted share, for the fourth quarter and
a net loss of $27.2 million for the year, or $1.65 per diluted share.
 
"Adjusted net income," "adjusted earnings," and other non-GAAP
financial measures used in this release are defined under "Non-GAAP
Financial Measures" on page 4. We have provided a reconciliation
between GAAP and adjusted (non-GAAP) measures in the attached
financial tables.
 
"Our fourth quarter and full year results exceeded our expectations,"
said Tim Conway, Chairman and Chief Executive Officer. "NewStar
continues to see strong growth across all business lines. Credit
quality is stable and our credit statistics remain favorable as our
portfolio continues to season. Our bankers continued to execute very
well across the business and we ended the year with great momentum
that has carried into the first quarter of 2007. We grew our managed
assets by 39%, or $575 million, in the fourth quarter to over $2
billion and generated better than expected fee revenue from asset
management and transaction activity."
 
On December 13, 2006, we completed our initial public offering,
raising $234.6 million through the issuance of 13.8 million shares of
common stock priced at $17.00 per share. We used the proceeds of the
offering to repay and terminate corporate debt of $37.5 million. We
also paid down certain revolving warehouse lines of credit by
approximately $50 million and invested the balance in short-term
money market instruments.
 
Strong Origination Volume
* Origination volume for the year was $1.4 billion, of which $158
   million was syndicated, $248 million was sold to the New Star
Credit
   Opportunities Fund (NCOF) and $1.0 billion was retained on
NewStar's
   balance sheet.
* Origination volume for the fourth quarter was $657 million, of
which
   $68.4 million was syndicated, $141 million was sold to the NCOF
and
   $447 million was retained on NewStar's balance sheet.
* Corporate represented approximately 73% of volume in 2006, while
   Structured Products and Commercial Real Estate were 15% and 12%,
   respectively.
* We continued to grow our proprietary direct origination platform in
   the fourth quarter, adding two new senior bankers and opening a
new
   office in San Diego.
 
Growth in Loans and Investments
 * Gross loans and investments in debt securities held on NewStar's
   balance sheet increased to $1.7 billion as of December 31, 2006,
an
   increase of $450 million from $1.3 billion at September 30, 2006.
* Managed loan portfolio increased to $2.0 billion as of December 31,
   2006, an increase of $575 million from $1.5 billion at September
30,
   2006. Assets managed for the NCOF increased from $159 million as
of
   September 30, 2006 to $283 million at year-end.
* Our business continues to be balanced across industry sectors and
   highly diversified across issuers.  As of December 31, 2006, no
   single issuer represented more than 1.5% of our loan portfolio and
   the ten largest issuers comprised approximately 10% of the loan
   portfolio.
* We continue to be highly selective and focus on senior debt
   products, with 78% of the loan portfolio invested in senior
secured
   loans and senior debt investments.
 
Net Interest Income / Margin
 * Net interest income before provision for credit losses was
   $15.5 million for the fourth quarter 2006 and $47.6 million for
the
   year 2006 compared to $13.9 million for the third quarter 2006 and
   $15.2 million for the prior year.
* Adjusted net interest margin was 4.50% for the fourth quarter 2006
   and 4.48% for the full year 2006 compared to 4.55% for the third
   quarter 2006 and 3.84% for the year ended 2005. Net interest
margin
   was 3.82% for the fourth quarter 2006 and 3.93% for the full year
   2006 compared to 4.15% for the third quarter 2006 and 3.84% for
the
   year ended 2005.
 
Revenue Growth
 * Net interest income plus non-interest income was $19.6 million for
   the fourth quarter 2006, up $3.7 million, or 23%, from $15.9
million
   in the third quarter 2006, driven principally by higher balances
of
   earning assets and a $1.9 million increase in fee revenue arising
   from better than expected transaction activity.
* Non-interest income was $4.1 million for the fourth quarter 2006,
an
   increase of $2.1 million from $2.0 million in the prior quarter.
   Non-interest income was $9.7 million for the year 2006, an
increase
   of $6.5 million from $3.1 million in the prior year. The increase
   was due principally to an increase in asset management fees
   generated by the NCOF and an increase in fee revenue arising from
   transaction activity, partially offset by an impairment charge on
   debt investments of $0.6 million.
* Total revenue after provision for credit losses was $13.6 million
in
   the fourth quarter 2006 and $44.7 for the full year 2006.
 
Stable Credit Quality
 * As of December 31, 2006, we did not have any impaired loans, loans
   on non-accrual status and had not experienced any loan charge
offs.
* As of December 31, 2006, we had an allowance for credit losses of
   $20.6 million, or 1.40% of loans compared to $14.6 million, or
   1.36%, at September 30, 2006 and $8.0 million or 1.27% at December
   31, 2005.  The increase in the allowance for credit losses is due
to
   higher loan balances and a slight shift in business mix and rating
   profile.
* Provision expense was $5.9 million in the fourth quarter 2006 and
   $12.5 million for the full year 2006 compared to $2.4 million in
the
   third quarter 2006 and $7.8 million for the year 2005.  The
increase
   in provision expense was driven principally by higher origination
   volumes and loan balances at December 31, 2006.
* One of our loans with a principal amount of $8.4 million became
   delinquent in the fourth quarter 2006, representing a 0.57%
   delinquency rate.  The loan remained delinquent as of December 31,
   2006.
* At December 31, 2006, debt investments were classified as
   available-for-sale and were carried at market/fair value. As of
   December 31, 2006, we had two debt investments with a combined
   carrying value of $6.2 million which our valuation methodologies
   determined to have other than temporary impairment.
 
Funding
 * In December 2006, we raised $234.6 million in gross proceeds
through
   an initial public offering.
* We used a portion of the proceeds to terminate the corporate debt
   and to pay down a portion of the warehouse lines of credit.
 
Expenses
 * Operating expenses were $51.6 million in the fourth quarter 2006
and
   $74.3 million for the full year 2006 compared to $8.6 million in
the
   third quarter 2006 and $20.0 million for the prior year. The
   increase in operating expenses is primarily due to a $39.1 million
   non-cash compensation charge related to restricted stock grants
made
   since our inception, including equity awards made in connection
with
   the initial public offering.
* Our adjusted efficiency ratio was 45.2% in the fourth quarter 2006
   and 50.8% for the full year 2006. Our efficiency ratio was 263.6%
in
   the fourth quarter 2006 and 129.7% for the full year 2006.
 
Conference Call and Webcast
 
We will host a webcast/conference call to discuss the results today
at 10:00 am Eastern Standard Time. All interested parties are invited
to participate via telephone or webcast, which will be hosted through
the Investor Relations section of our website at www.newstarfin.com.
Please visit the website to register for the webcast and test your
connection prior to the call. You can also access the conference call
by dialing (800) 289-0544 approximately 5-10 minutes prior to the
call. International callers should dial (913) 981-5533. All callers
should reference "NewStar Financial, Inc."
 
For convenience, an archived replay of the call will be available
through February 28, 2007 by dialing (888) 203-1112. International
callers should call (719) 457-0820. For all replays, please use the
passcode 601246. The audio replay will also be available through the
Investor Relations section of our website at www.newstarfin.com.
 
About NewStar Financial
 
NewStar Financial is a specialized commercial finance company focused
exclusively on meeting the complex financing needs of customers in
the middle market through our corporate, commercial real estate, and
structured products groups. Our senior banking teams call directly on
customers to provide advice and finance a range of strategic
transactions that may require some combination of senior secured,
second lien and mezzanine financing. NewStar typically works with
customers with financing needs of up to $150 million and cash flow as
low as $5 million. We target 'hold' positions of up to $35 million,
but may also underwrite or arrange transactions up to $100 million
for syndications to other lenders.
 
We are headquartered in Boston MA, with regional offices in Darien
CT, Chicago IL, San Francisco CA, San Diego CA, and Charleston SC. In
December of 2006, NewStar completed an Initial Public Offering. The
Company's shares trade on the NASDAQ under the ticker symbol, NEWS.
Please visit our website at www.newstarfin.com for more detailed
transaction and contact information.
 
Forward-Looking Statements
 
This release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact included in this
release are forward-looking statements. Forward-looking statements
give our current expectations and projections relating to our
financial condition, results of operations, plans, objectives, future
performance and business. As such, they are subject to material risks
and uncertainties.
 
More detailed information about these factors is described in
NewStar's filing with Securities and Exchange Commission (the "SEC").
NewStar is under no obligation to (and expressly disclaims any such
obligation to) update or alter its forward-looking statements,
whether as a result of new information, future events or otherwise.
NewStar plans to file its Form 10-K with the SEC on or before March
31, 2007 and urges its shareholders to refer to that document for
more complete information concerning NewStar's financial results.
 
Non-GAAP Financial Measures
 
References to "adjusted net income" and "adjusted earnings per share"
mean net income or earnings per share, respectively, as determined
under GAAP, excluding the following items: (i) interest expense and
amortization of deferred financing costs on corporate debt, (ii) the
call premium and termination fee associated with the termination of
our corporate debt, (iii) compensation expense related to restricted
stock grants made since our inception, including equity awards made
in connection with the initial public offering and (iv) general and
administrative expense incurred related to the initial public
offering. GAAP requires that these items be included in net income.
NewStar management uses "adjusted net income" and "adjusted earnings
per share" to make operational and investment decisions, and NewStar
believes that they provide useful information to investors in their
evaluation of our financial performance and condition. Excluding
interest expense and amortization of deferred financing costs on
corporate debt and the call premium and termination fee associated
with the termination of our corporate debt eliminates expenses that
we do not anticipate incurring in the foreseeable future that make it
difficult to assess our core performance and compare our
period-over-period results. Excluding compensation expense related to
restricted stock grants made since our inception, including equity
awards made in connection with the initial public offering and
general and administrative expense incurred related to our initial
public offering, eliminates unique expenses that make it difficult to
assess our core performance and compare our period-over-period
results. A reconciliation of adjusted net income to net income is
included on page 7 of this release.
 
References to "adjusted net interest margin" mean annualized interest
income as determined under GAAP less annualized interest expense as
determined under GAAP excluding interest expense and amortization of
deferred financing costs on corporate debt, divided by average
interest earning assets for the period.
 
Adjusted return on average assets means adjusted net income divided
by average assets for the period. Adjusted return on average equity
means adjusted net income divided by average equity for the period.
Adjusted efficiency ratio means operating expenses determined in
accordance with GAAP less (i) the call premium and termination fee
associated with the termination of our corporate debt, (ii)
compensation expense related to restricted stock grants made since
our inception, including equity awards made in connection with the
initial public offering and (iii) general and administrative expense
incurred related to the initial public offering divided by net
revenue. Adjusted cost of funds means adjusted interest expense
divided by average interest bearing liabilities for the period less
the average corporate debt outstanding for the period. The adjusted
ratios exclude unique expenses that make it difficult to assess our
core performance and compare our period-over-period results.
 
A reconciliation of our adjusted financial measures to their GAAP
equivalents is included on page 9 of this release. NewStar's adjusted
financial measures should not be considered as alternatives to
financial measures determined in accordance with GAAP and may be
different from, or inconsistent with, non-GAAP financial measures
used by other companies.
 
 NewStar Financial, Inc.
 Consolidated Balance Sheets
 (unaudited)

 ---------------------------------------------------------------------
                                  Dec. 31,     Sept. 30,     Dec. 31,
 ($ in thousands)                  2006          2006          2005

 ---------------------------------------------------------------------
 Assets:
 Cash and cash equivalents      $  103,269    $    4,725    $    1,423
 Restricted cash                    40,174        74,956        12,569
 Investments in debt
  securities,
  available-for-sale               203,121       185,140       103,548
 Loans held-for-sale                62,620        26,005        20,968
 Loans, net                      1,437,832     1,054,054       621,210
 Deferred financing costs, net      11,614        13,979        10,572
 Interest receivable                19,849        12,791         6,149
 Property and equipment, net           961           998         1,007
 Deferred income taxes, net         14,705         5,345         7,068
 Other assets                       21,047        11,507         4,938
                                ----------    ----------    ----------
   Total assets                 $1,915,192    $1,389,500    $  789,452
 =====================================================================
 Liabilities:
 Repurchase agreements          $   34,535    $   36,359    $   59,658
 Credit facilities                 625,910       354,610       246,800
 Term debt                         774,225       746,764       329,014
 Corporate debt                         --        37,500        37,500
 Accrued interest payable           23,200        15,700         4,617
 Accounts payable                    4,315           220           518
 Income tax payable                  4,166         1,809            --
 Other liabilities                  25,426        27,193        14,387
                                ----------    ----------    ----------
   Total liabilities             1,491,777     1,220,155       692,494
   Total stockholders' equity      423,415       169,345        96,958
                                ----------    ----------    ----------
   Total liabilities and
    stockholders' equity        $1,915,192    $1,389,500    $  789,452
 =====================================================================
 
NewStar Financial, Inc.
 Consolidated Statements of Operations
 (unaudited)

 ---------------------------------------------------------------------
  ($ in
   thousands,         Three Months Ended                Year Ended
   except per   -------------------------------          Dec. 31,
   share         Dec. 31,   Sept. 30,   Dec. 31,   -------------------
   amounts)       2006        2006       2005        2006       2005
 ------------   --------    --------   --------    --------   --------
 Net interest
  income:
   Interest
    income      $ 39,243    $ 32,980   $ 14,764    $116,303   $ 33,883
   Interest
    expense       23,766      19,122      8,320      68,728     18,639
                --------    --------   --------    --------   --------
     Net interest
      income      15,477      13,858      6,444      47,575     15,244
   Provision for
    credit losses  5,941       2,350      2,483      12,535      7,755
                --------    --------   --------    --------   --------
     Net interest
      income
      after
      provision
      for credit
      losses       9,536      11,508      3,961      35,040      7,489
 
 Non-interest
  income:
   Fee income      3,006       1,100      1,206       5,849      2,966
   Asset
    management
    income           692         478         16       1,443         16
   Gain on
    derivatives       73         114         16         909         46
   Other income      332         333          2       1,483        116
                --------    --------   --------    --------   --------
     Total non-
      interest
      income       4,103       2,025      1,240       9,684      3,144
 Operating
  expenses:
   Compensation
    and benefits  47,738       6,891      4,274      65,079     16,168
   Occupancy and
    equipment        486         476        335       1,758      1,124
   General and
    administrative
    expenses       3,380       1,201        925       7,445      2,757
                --------    --------   --------    --------   --------
     Total
      operating
      expenses    51,604       8,568      5,534      74,282     20,049
                --------    --------   --------    --------   --------
 Income (loss)
  before income
  taxes          (37,965)      4,965       (333)    (29,558)    (9,416)
   Income tax
    expense
    (benefit)     (5,911)      2,072       (125)     (2,377)    (3,517)
                --------    --------   --------    --------   --------
 Net income
  (loss)         (32,054)      2,893       (208)    (27,181)    (5,899)
   After tax
    adjustments:
     Extinguish-
      ment of
      corporate
      debt
      expense(a)   2,805         783         --       5,077         --
     IPO related
      compensation
      and benefits
      expense(b)  33,202          --         --      33,202         --
     IPO related
      general
      and admin-
      istrative
      expense(c)     621          97         --         796         --
                --------    --------   --------    --------   --------
 Adjusted net
  income (loss) $  4,574    $  3,773   $   (208)   $ 11,894   $ (5,899)
                ========    ========   ========    ========   ========
 
 Net income
  (loss) per
  share:
   Basic        $  (1.26)   $   0.18   $  (0.02)   $  (1.65)  $  (0.83)
   Diluted      $  (1.26)   $   0.18   $  (0.02)   $  (1.65)  $  (0.83)
 
 Weighted average
  shares out-
  standing:(d)
   Basic      25,376,446  15,821,992  9,358,156  16,480,836  7,110,363
   Diluted    25,376,446  16,343,275  9,358,156  16,480,836  7,110,363
 
 Adjusted net
  income (loss)
  per share:
   Basic        $   0.18    $   0.24   $  (0.02)   $   0.72   $  (0.83)
   Diluted      $   0.18    $   0.23   $  (0.02)   $   0.70   $  (0.83)
 
 Adjusted weighted
  average shares
  outstanding:(d)
   Basic      25,376,446  15,821,992  9,358,156  16,480,836  7,110,363
   Diluted    25,910,522  16,343,275  9,358,156  17,005,343  7,110,363
 
 (a) Includes interest expense for the 2006 periods, call premium,
     termination fee and deferred finance costs associated with the
     Company's corporate debt which was repaid on December 20, 2006.
 (b) Non-cash compensation charge related to restricted stock grants
     made since our inception, including equity awards made in
     connection with the initial public offering.
 (c) General and administrative expense related to the Company's
     initial public offering.
 (d) Weighted average shares for all periods reflect the conversions
     and reverse split that occurred at the IPO.
 
NewStar Financial, Inc.
 Selected Financial Data
 (unaudited)

 ---------------------------------------------------------------------
                          Three Months Ended           Year Ended
                --------------------------------        Dec. 31,
 ($ in           Dec. 31,   Sept. 30,   Dec. 31,  --------------------
  thousands)       2006        2006       2005       2006       2005
 -------------  ----------  ----------  --------  ----------  --------
 Performance
  Ratios:
   Return on
    average
    assets           (7.83)%      0.86%    (0.12)%     (2.22)%   (1.44)
   Return on
    average
    equity          (50.91)       7.09     (0.90)     (15.85)    (8.69)
   Net interest
    margin,
    before
    provision         3.82        4.15      3.86        3.93      3.84
   Efficiency
    ratio           263.57       53.94     72.02      129.73    109.03
 
 Credit Quality
  and Leverage
  Ratios:
   Delinquent
    loan rate
    (at period
    end)              0.57          --        --        0.57        --
   Non-accrual
    loan rate           --          --        --          --        --
   Net charge
    off rate            --          --        --          --        --
   Allowance for
    credit
    losses
    ratio
    (at period
    end)              1.40        1.36      1.27        1.40     1.27
   Equity to
    assets (at
    period end)      22.11       12.19     12.29       22.11    12.29
   Debt to
    equity (at
    period end)       3.39x       6.94x     6.94x       3.39x     6.94x
 
 Average Balances:
   Loans and
    other debt
    products,
    gross       $1,525,105  $1,229,989  $644,994  $1,150,111  $387,876
   Interest
    earning
    assets       1,606,785   1,325,704   658,252   1,210,494   397,219
   Total assets  1,623,952   1,338,928   672,017   1,224,744   409,623
   Interest
    bearing
    liabilities  1,328,178   1,153,528   569,056   1,028,139   331,739
   Equity          249,773     162,257    87,860     171,518    67,850
 
 Allowance for
  credit loss
  activity:
   Balance as of
    beginning
    of period   $   14,629  $   12,279  $  5,552  $    8,035  $    280
   Provision
    for credit
    losses           5,941       2,350     2,483      12,535     7,755
   Net charge
    offs                --          --        --          --        --
                ----------  ----------  --------  ----------  --------
   Balance as
    of end of
    period      $   20,570  $   14,629  $  8,035  $   20,570  $  8,035
                ==========  ==========  ========  ==========  ========
 
 Supplemental
  Data (at
  period end):
   Investments
    in debt
    securities,
    gross       $  217,314  $  196,084  $107,381  $  217,314  $107,381
   Loans held-
    for-sale,
    gross           63,277      26,290    21,118      63,277    21,118
   Loans held-for-
    investment,
    gross        1,467,038   1,075,450   633,460   1,467,038   633,460
                ----------  ----------  --------  ----------  --------
   Loans and
    investments
    in debt
    securities,
    gross        1,747,629   1,297,824   761,959   1,747,629   761,959
   Unused lines
    of credit      302,856     233,489    89,722     302,856    89,722
   Standby
    letters of
    credit           6,990       5,042     3,682       6,990     3,682
                ----------  ----------  --------  ----------  --------
   Total
    funding
    commitments $2,057,475  $1,536,355  $855,363  $2,057,475  $855,363
                ==========  ==========  ========  ==========  ========
 
 Loan portfolio $1,747,629  $1,297,824  $761,959  $1,747,629  $761,959
 Loans owned
  by NewStar
  Credit
  Opportunities
  Fund             283,378     158,635    33,157     283,378    33,157
                ----------  ----------  --------  ----------  --------
 Managed loan
  portfolio     $2,031,007  $1,456,459  $795,116  $2,031,007  $795,116
                ==========  ==========  ========  ==========  ========
 
 Loans held-
  for-sale,
  gross         $   63,277      26,290    21,118      63,277    21,118
 Loans held-
  for-investment,
  gross          1,467,038   1,075,450   633,460   1,467,038   633,460
                ----------  ----------  --------  ----------  --------
 Total loans,
  gross          1,530,315   1,101,740   654,578   1,530,315   654,578
 Deferred
  fees, net        (10,468)     (7,944)   (4,790)    (10,468)   (4,790)
 Allowance
  for loan
  losses           (19,395)    (13,737)   (7,610)    (19,395)   (7,610)
                ----------  ----------  --------  ----------  --------
 Total loans,
    net         $1,500,452  $1,080,059  $642,178  $1,500,452  $642,178
                ==========  ==========  ========  ==========  ========
 
NewStar Financial, Inc.
 Non-GAAP Data
 (unaudited)
                                  ------------------------------------
                                                 Adjusted
 ------------------------------   ------------------------------------
                                     Three Months Ended
                                  -----------------------   Year Ended
                                    Dec. 31,    Sept. 30,     Dec. 31,
 ($ in thousands)                    2006         2006         2006
 ------------------------------   ----------   ----------   ----------
 Performance Ratios:
   Return on average assets             1.12%        1.12%        0.97%
   Return on average equity             7.27         9.24         6.93
   Efficiency ratio                    45.19        48.77        50.78
   Net interest margin, before
    provision                           4.50         4.55         4.48
   Cost of funds                        6.44         6.32         6.26
 
 Average Balances:
   Interest bearing liabilities   $1,328,178   $1,153,528   $1,028,139
   Less: corporate debt               33,016       37,500       36,370
                                  ----------   ----------   ----------
   Adjusted interest bearing
    liabilities                   $1,295,162   $1,116,028   $  991,769
                                  ==========   ==========   ==========
 
 Consolidated Statement of
  Operations  Adjustments(a):
   Interest expense               $   23,766   $   19,122   $   68,728
   Less: interest & amortization
    related to corporate debt          2,728        1,344        6,662
                                  ----------   ----------   ----------
   Adjusted interest expense      $   21,038   $   17,778   $   62,066
                                  ==========   ==========   ==========
 
 Operating expenses               $   51,604   $    8,568   $   74,282
 Less:
 Corporate debt prepayment fees        1,425           --        1,425
 IPO related compensation and
  benefits expense(b)                 39,129           --       39,129
 IPO related general and
  administrative expense(c)              968          167        1,268
                                  ----------   ----------   ----------
 Adjusted operating expenses      $   10,082   $    8,401   $   32,460
                                  ==========   ==========   ==========
 
 (a) Adjustments are pre-tax.
 (b) Non-cash compensation charge related to restricted stock grants
     made since our inception, including equity awards made in
     connection with the initial public offering.
 (c) General and administrative expense related to the Company's
     initial public offering.
 
NewStar Financial, Inc.
 Portfolio Data
 (unaudited)

 ---------------------------------------------------------------------
 ($ in
  thousands)   Dec. 31, 2006       Sept. 30, 2006       Dec. 31, 2005
 ----------- -----------------    -----------------    ---------------
 Portfolio
  Data:
   First
    mortgage $  216,888   12.4%   $  138,674   10.7%   $ 90,997   11.9%
   Senior
    secured
    asset-
    based        56,631    3.2        46,817    3.6      35,162    4.6
   Senior
    secured
    cash flow 1,082,048   61.9       783,754   60.3     438,919   57.6
   Senior
    subord-
    inated
    asset-
    based       237,312   13.6       198,148   15.3      93,261   12.2
   Senior
    subord-
    inated
    cash flow    39,240    2.3        37,882    2.9      19,000    2.5
   Second lien   70,875    4.1        46,376    3.6      37,000    4.9
   Subord-
    inated       43,916    2.5        45,457    3.5      47,620    6.3
   Mezzanine        719     --           716    0.1          --     --
             ----------  -----    ----------  -----    --------  -----
     Total   $1,747,629  100.0%   $1,297,824  100.0%   $761,959  100.0%
             ==========  =====    ==========  =====    ========  =====
 
 Corporate   $1,183,107   67.7%   $  859,039   66.2%   $502,581   66.0%
 Structured
  Products      333,787   19.1       286,237   22.0     163,381   21.4
 Commercial
  Real
  Estate        230,735   13.2       152,548   11.8      95,997   12.6
             ----------  -----    ----------  -----    --------  -----
   Total     $1,747,629  100.0%   $1,297,824  100.0%   $761,959  100.0%
             ==========  =====    ==========  =====    ========  =====
 
CONTACT:  NewStar Financial, Inc.
          Corporate Inquiries:
          Robert K. Brown
          617-848-2558
          rbrown@newstarfin.com