Affiliates of WR Berkley bought 1.3 million shares of CapitalTrust's class A common stock and warrants to purchase an additional365,000 shares for a total purchase price of $30.6 million. Thewarrants have an exercise price of $23.40 per share, expire onDecember 31, 2004 and are not exercisable unless the issuance ofthe underlying shares is approved by shareholders at the Company'sannual meeting on June 17, 2004. Subject to shareholder approval atthe annual meeting and certain other closing conditions, WR Berkleywill purchase an additional 325,000 shares for $23.40 per share,totaling 7.6 million.

Capital Trust intends to use the net proceeds from the sale forgeneral corporate purposes, including funding balance sheetinvestment activity, capital commitments to managed funds,potential business acquisitions and repayment of indebtedness.

"We're right where we exepcted to be," John Klopp, CapitalTrust's CEO, tells GlobeSt.com, adding that he looks forward toworking with WR Berkley. "It was a great transaction--a strategicpartnership." As part of the WR Berkley transaction, Joshua A.Polan, a managing director of Berkley Capital LLC, has also beenappointed to Capital Trust's board.