KKR Financial Corp. Prices Initial Public Offering at $24 Per Share SAN FRANCISCO, June 23 /PRNewswire-FirstCall/ -- KKR Financial Corp. ("KKR Financial") announced today that its initial public offering of 33,333,334 shares of common stock has been priced at $24 per share. This offering includes 28,750 shares being sold by existing stockholders. KKR Financial has granted the underwriters an option to purchase up to an additional 4,166,666 additional shares of common stock to cover over-allotments. The shares of KKR Financial are scheduled to begin trading on June 24, 2005 on the New York Stock Exchange under the ticker symbol "KFN." Citigroup Global Markets Inc., Bear Stearns & Co., Inc., Credit Suisse First Boston LLC, Lehman Brothers Inc., J.P. Morgan Securities Inc., and Friedman, Billings, Ramsey, & Co., Inc. are serving as joint book-running managers of the offering. A final prospectus of the offering may be obtained from Citigroup Global Markets Inc., Prospectus Department, Brooklyn Army Terminal, 8th Floor, 140 58th Street, Brooklyn, NY 11220, (Tel: 718-765-6732). KKR Financial Corp., an affiliate of Kohlberg Kravis Roberts & Co. L.P., is a diversified specialty finance company that invests across multiple asset classes, including residential mortgage loans and mortgage-backed securities, corporate loans and debt securities, commercial real estate loans and debt securities, and asset-backed securities. Founded in July 2004, KKR Financial has $7 billion in assets under management. The following statement is included in this press release in accordance with Rule 134(b)(1) of the Securities Act of 1933, as amended: A registration statement relating to shares of common stock of KKR Financial has been declared effective by the Securities and Exchange Commission. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. CONTACT: Investors Media Laurie Poggi Molly Morse / Roanne Kulakoff KKR Financial Kekst and Company 415-315-3718 212-521-4826/4837 DATASOURCE: KKR Financial Corp. CONTACT: investors, Laurie Poggi of KKR Financial Corp., +1-415-315-3718; or media, Molly Morse, +1-212-521-4826, or Roanne Kulakoff, +1-212-521-4837, both of Kekst and Company, for KKR Financial Corp.

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