Redwood Trust, Inc. Selects ePAM(R) for Securities

ePAM will replace Redwood Trust's legacy accounting system and will integrate with other best-of-breed systems that support the trading and data management processes. The company required a portfolio accounting system that could properly model and account for complex mortgage securities and derivatives in order to support its investment strategy. Redwood Trust joins a growing list of REITs who have recognized the importance of utilizing a robust platform like ePAM to keep up with the challenges and complexities of today's mortgage securities market.

"We were looking for a technology platform that could handle the complex accounting and tax requirements for all of our investment instruments as part of our overall desire to enhance controls and efficiency," said Dorothy Beattie, Manager of Systems for Redwood Trust. "We were also looking for a vendor with expertise and strong credentials in this specialized marketplace. ePAM and Princeton Financial were able to deliver on both fronts. The ability to leverage the world-class infrastructure supporting the SaaS delivery of ePAM provides a deployment environment that allows us to focus on our core business of producing strong returns at acceptable levels of risk."

"We applaud the thoroughness with which Redwood Trust undertook its evaluation of potential solutions," said Lorne Whitmore, vice president of global sales for Princeton Financial. "The extensive work that we have done together has prepared us for a successful implementation and sets the foundation for what we believe will be a long and mutually rewarding partnership. We feel tremendous pride about our ability to meet the demanding requirements of sophisticated investors in mortgage securities like Redwood Trust."

About Redwood Trust, Inc.

Redwood Trust, Inc. (NYSE: RWT | Quote | Chart | News | PowerRating) invests in, credit-enhances, and securitizes residential and commercial real estate loans and securities. Through its ownership of residential credit-enhancement securities, Redwood credit-enhances $152 billion high-quality residential real estate loans. Redwood credit-enhances approximately 10% of the jumbo residential loans in the United States. Through its ownership of commercial credit-enhancement securities, Redwood credit-enhances $49 billion of commercial real estate loans.

About Princeton Financial Systems, Inc.

Princeton Financial Systems is a leading provider of portfolio management and accounting systems for global institutional investors. Its flagship PAM(R) investment management systems are leading accounting solutions used worldwide by over 300 leading investment managers, insurance companies, mutual funds and unit trusts, pension funds, hedge funds, endowments, banks, and corporations, which manage combined total assets of over $5 trillion. Princeton Financial has offices located in the United States, United Kingdom, the Netherlands, Australia, Singapore, and Canada. For more information, visit Princeton Financial's website at www.pfs.com.

SOURCE: Princeton Financial Systems

Media: Princeton Financial Systems Cyndi Flanagan, +1-609-987-2400 cflanagan@pfs.com