KFN Kkr Financial Holdings Llc

SAN FRANCISCO, Jan. 23 /PRNewswire-FirstCall/ -- KKR Financial Holdings LLC (NYSE:KFN) announced today that the company has posted to the Investor Relations section of its website (http://www.kkrkfn.com/) a schedule of the record date, payment date and tax information for the dividend that its predecessor, KKR Financial Corp., declared and paid in February 2007. KKR Financial Corp.'s Form 1099-DIV Tax Information For tax reporting purposes, the dividend declared and paid in February 2007 on KKR Financial Corp.'s common stock was $0.54 per share. Of the total $0.54 per share distribution, $0.28 per share, or 52%, is considered a nontaxable return of capital and $0.26 per share, or 48%, is considered an ordinary dividend taxable at ordinary rates to shareholders. No portion of the distribution is eligible for the 15% qualified dividend tax rate or the corporate dividends received deduction. Shareholders should check their 2007 tax statements (Form 1099-DIV) received from the company's transfer agent or from the shareholder's brokerage firm(s) in order to ensure that the dividend tax information for KKR Financial Corp. reported on such statements conforms to the information reported herein. KKR Financial Holdings LLC's Schedule K-1 Tax Information As a result of the company's restructuring from a publicly-traded real estate investment trust ("REIT") to a publicly-traded limited liability company ("LLC") on May 4, 2007, shareholders will no longer receive a Form 1099-DIV, Dividends and Distributions, for annual tax reporting purposes with respect to distributions paid after February 2007, but instead will receive a Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. The company expects to mail the 2007 Schedule K-1s to shareholders by the end of March 2008. Tax Disclaimer The tax information above should not be construed as tax advice and is not a substitute for careful tax planning and analysis. You should consult your own tax advisor regarding the specific federal, state, local, foreign and other tax consequences to you regarding your ownership of shares of the company and its predecessor, KKR Financial Corp. About KKR Financial Holdings LLC KKR Financial Holdings LLC is a specialty finance company that invests in multiple asset classes. KKR Financial Holdings LLC is externally managed by KKR Financial Advisors LLC. KKR Financial Holdings LLC and KKR Financial Advisors LLC are affiliates of Kohlberg Kravis Roberts & Co. L.P. Additional information on KKR Financial Holdings LLC is available at http://www.kkrkfn.com/. CONTACT: Investors: Laurie L. Poggi KKR Financial 415-315-3718 Media: Roanne Kulakoff/Joseph Kuo Kekst and Company 212-521-4837/4863 DATASOURCE: KKR Financial Holdings LLC CONTACT: Investors, Laurie L. Poggi of KKR Financial, +1-415-315-3718; or Media, Roanne Kulakoff, +1-212-521-4837, or Joseph Kuo, +1-212-521-4863, both of Kekst and Company, for KKR Financial Web site: http://www.kkrkfn.com/

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