Hotel

RAIT Financial Trust announced today that, on January 19, 2007, the underwriters of its public offering of 10.0 million common shares of beneficial interest, which priced on January 18, 2007, exercised in full the over-allotment option for an additional 1.5 million common shares that RAIT granted to them in connection with the offering. After giving effect to the exercise of the over-allotment option, in this offering RAIT will sell 11.5 million common shares and will receive aggregate net proceeds of $365.5 million after underwriting discounts, commissions and estimated offering expenses. Delivery of the net proceeds is expected to be on Wednesday, January 24, 2007. RAIT intends to use these net proceeds to repay indebtedness and for general trust purposes as is more fully described in the prospectus supplement referred to below.

The offering is being made solely by means of a prospectus supplement and the accompanying prospectus, copies of which may be obtained by contacting Friedman Billings Ramsey & Co., Inc., 1001 Nineteenth Street North, Arlington, Virginia 22209; Attention: Syndicate Department; (703) 312-9500 and Bear, Stearns & Co. Inc., 383 Madison Avenue, New York, New York 10179; Attention: Prospectus Department; (631) 274-8321. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of RAIT’s 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.

About RAIT Financial Trust

RAIT Financial Trust, a real estate investment trust (”REIT”), originates secured and unsecured debt instruments including bridge, mezzanine and whole commercial real estate loans, trust preferred securities and subordinated debt for private and corporate owners of commercial real estate, REITs and real estate operating companies throughout the United States and Europe. For more information, please visit www.raitft.com or call Investor Relations at 215-861-7900.

Contact:

RAIT Financial Trust Contact
Andres Viroslav
215-861-7923
aviroslav@raitft.com

Source: RAIT Financial Trust