KKR Financial Holdings LLC

KKR Financial Corp. Announces Results of Annual Meeting of Stockholders

SAN FRANCISCO, May 3, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- KKR Financial Corp. (NYSE: KFN) announced today that its stockholders approved the restructuring plan to cause KKR Financial Corp. to become a wholly-owned subsidiary of KKR Financial Holdings LLC, a recently formed Delaware limited liability company whose shares will be listed and publicly traded on the New York Stock Exchange under the ticker "KFN".

The restructuring plan is expected to be completed tomorrow, May 4, 2007, prior to the opening of trading on the New York Stock Exchange. The shares of KKR Financial Holdings LLC are expected to begin trading on the New York Stock Exchange under the ticker symbol "KFN" at the opening of the market tomorrow.

Saturnino Fanlo, Chief Executive Officer, said, "We are grateful for the commitment that our stockholders have shown in supporting the restructuring."

In addition to the restructuring transaction, the stockholders approved the election of the company's twelve directors and the appointment of Deloitte & Touche LLP as the company's independent registered public accounting firm for the upcoming year.

For more information on the restructuring plan, election of directors and ratification of the appointment of Deloitte & Touche LLP, please refer to the Proxy Statement/Prospectus filed on April 2, 2007, a copy of which is available at www.kkrkfn.com/investorrelations/financialreports.

KKR Financial Corp. is a specialty finance company that invests in multiple asset classes and uses leverage to generate competitive leveraged risk-adjusted returns. KKR Financial Corp. currently makes investments in the following asset classes: (i) residential mortgage loans and mortgage-backed securities; (ii) corporate loans and debt securities; (iii) commercial real estate loans and debt securities; (iv) asset-backed securities; and (v) marketable and non-marketable equity securities. KKR Financial Corp. also makes opportunistic investments in other asset classes from time to time. KKR Financial Corp. was organized as a Maryland corporation on July 7, 2004, and commenced operations on August 12, 2004. KKR Financial Advisors LLC manages KKR Financial Corp. pursuant to a management agreement. KKR Financial Corp. and KKR Financial Advisors LLC are affiliates of Kohlberg Kravis Roberts & Co. L.P. For more information about KKR Financial Corp. or a copy of this press release visit its website at www.kkrkfn.com.

    CONTACT:
    Investors                Media
    Laurie L. Poggi          Roanne Kulakoff/Joseph Kuo
    KKR Financial            Kekst and Company
    (415) 315-3718           (212) 521-4837/4863

SOURCE KKR Financial Corp.

investors, Laurie L. Poggi of KKR Financial, +1-415-315-3718; or media, Roanne
Kulakoff/Joseph Kuo, both of Kekst and Company, +1-212-521- 4837/4863, for KKR

http://www.kkrfn.com/

News Provided by COMTEX