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NewStar Financial Provides Acquisition Financing for ReachOut Healthcare of America

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Boston, MA September 30, 2008 – NewStar Financial, Inc. (NASDAQ:NEWS), a Boston-based specialty finance company, announces that it has provided senior debt capital in support of an acquisition financing led by Golub Capital that finances ReachOut Healthcare of America's ("ReachOut Healthcare") acquisition of Mobile Dentists, a provider of mobile dental care to underprivileged children and military personnel. ReachOut Healthcare, a portfolio company of Sentinel Capital Partners ("Sentinel"), is a leading provider of mobile dental services to underprivileged children in schools and foster programs, the elderly and disabled in residential facilities and U.S. Army National Guard units throughout the country. Sentinel is a lower middle market focused private equity firm based in New York that has approximately $1.25 billion of capital under management.

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