Overview Formed in December 2004, Deerfield Capital Corp. (NYSE listed: DFR) is a specialty finance company that invests across a number of different credit-related asset classes including corporate loans (such as bank loans and mezzanine debt), commercial real estate loans and residential mortgage-backed securities (RMBS) As of September 30, 2007, DFR had assets under management of $8.4 billion. Our objective is to provide attractive returns to investors through a combination of dividends and capital appreciation. DFR has elected to be treated as a real estate investment trust for federal income tax purposes.

Deerfield Capital Management Effective December 21, 2007, DFR has acquired Deerfield Capital Management LLC, (DCM), a fixed income asset manager with approximately $15.4 billion of assets under management as of November 1, 2007. Headquartered in Chicago, and with additional offices in New York and London, DCM is a Chicago-based asset manager offering a diverse range of fixed income and credit-related strategies to institutional investors.

"Next Generation" Specialty Finance Company We think of DFR as a "next generation" specialty finance company that is uniquely positioned in the financial services industry. Our election to use REIT tax status offers us significant operational flexibility that is not available to traditional financial institutions, including greater freedom in structuring and financing our investments. In addition, it provides tax advantages to our investors. DFR is also less capital intensive than other financial companies due to a lack of "brick and mortar" capital requirements. Collectively, we believe these advantages allow us to achieve greater profitability and ultimately pay higher dividends over time to our stockholders.

Strong Investment Origination Capabilities DFR is well positioned to target attractive, high-yielding corporate and real estate lending opportunities generally unavailable to public company investors. Our extensive relationships within the financial sponsor community and leading investment banks afford us the ability to generate an array of unique and, in many cases, proprietary investment opportunities. Additionally, as a premier investor in syndicated leveraged loans through the management of 15 CLOs (collateralized loan obligations) and one structured loan fund with a total of approximately $5.7 billion under management, DCM provides us with unparalleled access to investment opportunities within the loan syndication market.

Solid Credit Culture and Experience Central to DFR's corporate lending strategy is our ability to analyze corporate credit, a longstanding strength of DCM. Our long history in fundamental industry research, together with our disciplined credit approach, plays an integral role in our investment decision process. In addition, our seasoned investment team brings a wealth of experience and creativity to bear when analyzing and structuring new investment opportunities.