Crystal River Capital Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. The net loss for the quarter ended September 30, 2009 totaled $55.3 million, or $2.19 loss per basic and diluted share, compared to a net loss of $56.7 million, or $2.28 loss per basic and diluted share, for the third quarter of 2008. For the quarter, the company reported total revenues of $11.8 million compared to total revenues of $27.5 million for the same period a year ago. For the quarter, the company reported total revenues of $44.6 million and net loss of $71.7 million or $2.85 loss per diluted share compared to total revenues of $108.7 million and net loss of $269.9 million or $10.88 loss per diluted share for the same period a year ago. The Board of Directors has elected to suspend the quarterly dividend to holders of shares of the company's common stock to preserve liquidity in consideration of the large increase in the delinquency rate on the Company's CMBS portfolio and the resulting uncertainty regarding operating cash flows. Based on the Company's current forecasts, Crystal River would not be required to make any further distributions in 2009 in order to maintain its REIT status through 2009. The elimination of the common dividends for the remainder of 2009, assuming the same $0.10 quarterly dividend per share that was paid in October 2009, equates to approximately $2.5 million in cash flow savings each quarter.

Crystal River Capital Inc. announced the resignation of William M. Powell as the chief executive officer and as a director of the company in order to pursue other Brookfield Asset Management initiatives, and the appointment of Rodman L. Drake as the chairman of the Board of Directors and as the interim Chief Executive Officer of the company.

Crystal River Capital, Inc. announced that its Board of Directors has formed a Special Committee comprised of its independent directors and that the Special Committee has retained a financial advisor and legal counsel to assist in a review of the company's strategic alternatives. The company also announced the resignation of William M. Powell as the chief executive officer and as a director of the company in order to pursue other Brookfield Asset Management initiatives, and the appointment of Rodman L. Drake as the chairman of the Board of Directors and as the interim Chief Executive Officer of the company. Finally, the company also announced that the Special Committee and Brookfield Asset Management are in negotiations concerning the extension and restructuring of the company's existing secured revolving credit facility from a subsidiary of Brookfield. The Special Committee and Brookfield expect these negotiations to be concluded prior to the end of the quarter. The independent advice being rendered to the Special Committee of the Board of Directors is intended to allow the company to explore all of its options to enhance shareholder value. The company expects to consider and evaluate several alternatives during the months ahead, including, but not limited to, the potential sale of the company or all or some of its assets, a joint venture involving certain assets and its options to access equity capital. Depending on the outcome of the Special Committee's review of strategic alternatives, the company may appoint a permanent Chief Executive Officer at a later date. Chairman and Chief Executive Officer Rodman L. Drake said, "the Board is encouraged that the ongoing negotiations with Brookfield will result in the restructuring of Crystal River's existing credit facility on terms that will provide the company with the flexibility it will need as it explores its strategic alternatives." Brookfield has indicated its willingness to work with the Company on restructuring the existing credit facility and will support and work cooperatively with the Company in its efforts to create value for all shareholders. The company does not intend to disclose further developments until it has either completed its negotiations with Brookfield or approved a course of action in connection with the exploration of its strategic alternatives. Crystal River can provide no assurance that the processes will culminate with a specific transaction or other decision. Broadpoint.Gleacher will serve as financial advisor to the company, and Goodwin Procter LLP will serve as legal counsel to the Special Committee.