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NewStar Financial Is Joint Lead Arranger and Administrative Agent on a $125 Million Financing for Modern Luxury Media

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Boston, MA, July 10, 2007 – NewStar Financial, Inc., a Boston-based specialty finance company, announces that it has provided senior debt financing to support Clarity Partners LP's ("Clarity") acquisition of a controlling interest in Modern Luxury Media, LLC ("Modern Luxury"), the nation's largest publisher of luxury city-regional magazines.
Founded in 1994 and based in Los Angeles, CA, Modern Luxury publishes luxury lifestyle magazines in 12 major metropolitan markets including Chicago, Los Angeles, Orange County, San Diego, Dallas, Houston, San Francisco, Atlanta, Washington DC and Hawaii. The company will premiere its newest magazine, "Miami", this September. In addition, Modern Luxury owns and operates the Front Desk series of luxury in-room hotel magazines as well as other regional magazines related to men, bridal and interior design.

NewStar served as Joint Lead Arranger and Administrative Agent for the $125 million senior credit facilities. Credit Suisse Securities (USA) LLC served as Joint Lead Arranger and BNP Paribas and Merrill Lynch Capital were Co-Documentation Agents."We value NewStar's publishing expertise and were impressed with their execution of the syndication of the senior credit facilities," commented Michael Kong, the CEO of Modern Luxury. "NewStar has proven to be a valuable partner in this transaction and we look forward to continuing to work with them as we execute on new growth opportunities for the company.""NewStar is pleased to be supporting Modern Luxury and Clarity. The company has established itself as a market leader with a solid growth strategy and an excellent management team," said David Dobies, Co-Head of middle market originations at NewStar. "We are also excited to further expand our relationship with Clarity."The deal team for this transaction from NewStar included David Dobies, Rob Milordi, Mark du Four, Scott Trefry, and Kristen Abels.About Modern Luxury Group:

Modern Luxury was founded by Michael Kong, Stacy Twilley (Michael Kong's wife) and Stephen Kong in Chicago in 1994 with one magazine CS (formerly Chicago Social). Today Modern Luxury is the largest publisher of city-regional magazines in America, publishing 25 titles across 12 major metropolitan markets including CS (Chicago), Angeleno (Los Angeles), Riviera (Orange Co. and San Diego), Modern Luxury Dallas, Houston magazine, San Francisco magazine, The Atlantan, DC magazine and Modern Luxury Hawai'i. The company will premiere its newest magazine, Miami, this September. In addition, Modern Luxury owns and operates the Front Desk series of luxury in-room hotel magazines as well as other magazines related to men, bridal and interior design. About Clarity Partners:

Clarity Partners is a Los Angeles-based private equity firm focused on investments in media, communications, and business services. Clarity's partners have invested together since the 1980s. Clarity's transactions have included growth investments, leveraged acquisitions and build-ups, joint ventures, and recapitalizations. Some of Clarity's other investments include ImpreMedia, the leading publisher of Spanish language newspapers in the U.S. (including La Opinion in Los Angeles and El Diario in New York); Oxygen Media, the cable programming network targeting women reaching over 71 million subscribers; Crescent Entertainment/Village Roadshow Pictures, a filmed entertainment library and production company with ownership interests in several major motion pictures including "The Matrix" trilogy, "Ocean's 11", "12" and "13", and "Happy Feet"; Vue Entertainment, a leading chain of movie theaters in the United Kingdom; Naylor Publications, a business information and media company partnering with trade associations; and, TelePacific Communications, the leading competitive local exchange carrier in California. Clarity's principals have a long history of creating, operating, and investing in highly successful and innovative companies, including pre-Clarity investments such as Univision, WebTV, and Global Crossing. Clarity has an affiliated fund, Clarity China, with additional offices in Beijing and Shanghai, which makes private equity investments in that country. NewStar Financial, Inc.:

NewStar Financial is a specialized commercial finance company focused exclusively on meeting the complex financing needs of customers in the middle market through our corporate, commercial real estate, and structured products groups. Our senior banking teams call directly on customers to provide advice and finance a range of strategic transactions that may require some combination of senior secured, second lien and mezzanine financing. NewStar typically works with customers with financing needs of up to $150 million and cash flow as low as $5 million. We target 'hold' positions of up to $35 million, but may also underwrite or arrange transactions up to $100 million for syndications to other lenders. We are headquartered in Boston MA, with regional offices in Darien CT, Chicago IL, San Francisco CA, San Diego CA, and Charleston SC. In December of 2006, NewStar completed an Initial Public Offering. The Company's shares trade on the NASDAQ under the ticker symbol, NEWS. Please visit our website at for more detailed transaction and contact information.

Corporate Inquiries:

NewStar Financial

Robert K. Brown

(617) 848-2558
Press-Related Inquiries:

Gaffney Bennett Public Relations

Annie Donnelly
(860) 416-1365

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