Deerfield Capital Corp. (DFR)

[~6979~]

Deerfield Capital Corp. Announces Second Quarter 2008 Results
CHICAGO, Aug 11, 2008 /PRNewswire-FirstCall via COMTEX/ -- Deerfield Capital Corp. (NYSE: DFR) today announced the results of operations for its second quarter ended June 30, 2008 and provided a corporate update.

SECOND QUARTER 2008 SUMMARY AND CORPORATE UPDATE

-- Net income for the quarter totaled $5.7 million, or $0.08 per diluted common share, compared with net income of $14.5 million, or $0.28 per diluted common share in the prior year quarter.

-- Estimated REIT taxable income, a non-GAAP financial measure, was a loss of $34.0 million, or $0.49 per diluted common share, compared to income of $20.5 million, or $0.40 per share in the second quarter of 2007 (see reconciliation of GAAP net income (loss) to estimated REIT taxable loss attached).

-- Assets under management (AUM) totaled approximately $13.0 billion at July 1, 2008.
-- Book value per share was $3.37 at June 30, 2008, up from $3.26 at March 31, 2008.

-- Economic book value per share, a non-GAAP financial measure, was $3.41 at June 30, 2008 (see Economic Book Value section that follows and reconciliation of book value to economic book value attached).

-- Unrestricted cash, cash equivalents, unencumbered liquid securities and net equity in financed liquid securities totaled approximately $85.7 million at quarter end.

-- Closed the acquisition of the management contract for Robeco CDO II Limited in July 2008, adding approximately $201 million in AUM.

Share Repurchase Program

The company also announced today that its board of directors authorized the repurchase of up to $1 million of the company's outstanding common stock. The amount of the authorized repurchase was capped by the terms of the Series A and Series B notes issued by the company in connection with the Merger which limit the aggregate amount of common stock repurchases to $1 million during the term of the note agreements. As of June 30, 2008, the company had 66.7 million shares outstanding.
Commenting on the share repurchase program, Mr. Trutter said, "With this share repurchase program, we are affirming our confidence in the long-term future of the company. We continue to actively explore opportunities to increase long-term value for our shareholders."

The share repurchases may occur from time-to-time through open market purchases, privately negotiated transactions and/or transactions structured through investment banking institutions as permitted by securities laws and other legal requirements. The manner, timing and amount of any purchases will be determined by the company based on an evaluation of market conditions, stock price and other factors. The program does not obligate the company to acquire any particular amount of common stock, and it may be modified or suspended at any time at the company's discretion. The company does not intend to repurchase any shares from its management team or other insiders.

The share repurchase will be funded using the company's existing cash balance.

Board Retains UBS Investment Bank