NEWSTAR FINANCIAL IS CO-AGENT ON $40 MILLION SENIOR FINANCING FOR WOOD STRUCTURES, INC.

NewStar supports acquisition by Roark Capital Group, Inc

Boston, MA, October 4, 2005 – NewStar Financial, Inc. ("NewStar"), a Boston-based specialty finance company, announces that it has provided financing to support the acquisition of Wood Structures, Inc. ("WSI" or the "Company") of Biddefort, Maine by Roark Capital Group ("Roark") of Atlanta. WSI is New England’s dominant designer and manufacturer of wood roof trusses, floor trusses, and wall panels and the regions largest distributor of engineered wood products to lumber yards in the New England region.

WSI, which has been in business since 1966, serves the entire NE wood frame construction market, including single and multi-family residential and commercial construction.

NewStar was Co-Agent for the $40 million senior secured credit facilities comprising a five-year $10 million revolving loan, a five-year $11.5 million term loan A, and a six-year $18.5 million term loan B. NewStar partnered with lead arranger ORIX on this transaction.

"NewStar is pleased to be working with an industry leader like Wood Structures and a top tier sponsor like Roark," said Robert Kosian, managing director of middle market originations at NewStar. "We’re backing an outstanding management team in this transaction, one with a consistent track record of generating strong cash flows."

Joining Kosian on NewStar’s deal team for the transaction were Pem Covington, David Belanger, and John Bosco.