Redwood Trust Announces Pricing of Common Stock Offering

MILL VALLEY, Calif., May 27 /PRNewswire-FirstCall/ - Redwood Trust, Inc. (NYSE: RWT) today announced the pricing of a public offering of 15 million shares of its common stock at a public offering price per share of $14.50. Redwood Trust has granted the underwriters a 30-day overallotment option to purchase up to 2.24 million additional shares of common stock. Redwood Trust will receive estimated net proceeds from the offering of $207 million, or $238 million if the underwriters choose to exercise the overallotment option. The offering is expected to close on June 2, 2009.

Net proceeds from the offering will be used to acquire residential and commercial real estate loans and mortgage-backed securities and may also be used to co-invest with third party investors in investment funds which Redwood Trust may sponsor and for other general corporate purposes. The offering is being conducted as a public offering registered under the Securities Act of 1933.

The sole bookrunning manager for the offering is J.P. Morgan Securities Inc.

A copy of the prospectus supplement and prospectus relating to these securities may be obtained by contacting J.P. Morgan Securities Inc., Attn: Prospectus Department, 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245 or by calling 1-718-242-8002.

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

Source: Redwood Trust, Inc.

Company Release - 05/27/2009 18:49

Contact: Martin S. Hughes, +1-415-389-7373, or Mike McMahon, +1-415-384-3805, both for Redwood Trust, Inc.