NEWSTAR FINANCIAL PURCHASES SUBORDINATED NOTE FROM CHARMING SHOPPES, INC.

Boston, MA, November 18, 2004 – NewStar Financial, Inc. (“NewStar”), a Boston-based commercial finance company, announces that it has provided financing to Charming Shoppes, Inc. (“Charming”) as part of a $100 million credit card receivables transaction. The transaction supports Charming’s retail credit card business. NewStar purchased a $10.5 million note that Charming had previously retained on its balance sheet.

Buck Burnaman, Managing Director of NewStar commented “Charming’s management was receptive to our innovative structure which enabled them to monetize a balance sheet asset to obtain additional liquidity.”

NewStar’s deal team for the transaction included Tom Calhoun, Samuel Belu-John, and Cyrus Zahedi.

Charming Shoppes, Inc. operates 2,250 stores in 48 states under the names Lane Bryant®, Fashion Bug®, Fashion Bug Plus®, and Catherines Plus Sizes®.

About NewStar Financial, Inc.:
NewStar Financial, Inc. was formed in June 2004 by a group of senior banking and capital markets executives from leading financial institutions, including FleetBoston Financial, Citigroup and JP Morgan Chase, and leading institutional investors including Capital Z Partners, JP Morgan Corsair Capital Partners and Och-Ziff Capital Management Group. NewStar is focused exclusively on providing customized financing solutions to mid-sized borrowers in three lending groups: Middle Market Corporate, Commercial Real Estate, and Structured Products. For more information, please contact the appropriate individual below.