HFF closes bridge financing on behalf of Lone Star Funds

DALLAS, TX, Aug. 25, 2008 – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it arranged bridge financing for a portfolio of 26 corporate-owned assets of Lone Star Steakhouse & Saloon, Inc. (top right photo)

HFF managing director Mark West (top left photo) and associate director Clint Corn worked exclusively on behalf of Lone Star Funds to secure the floating-rate loan through a regional bank.

In late 2007, HFF arranged a similar execution on a pool of 17 Lone Star Steakhouses & Saloon, Inc. assets through a separate regional bank.

Lone Star Funds acquired Wichita-based Lone Star Steakhouse & Saloon, Inc. in December 2006 through a public-to-private buyout.

The 27 restaurants are located in Alabama, Colorado, Illinois, Kansas, Maryland, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Tennessee and Utah.

Lone Star Funds are closed-end, private-equity limited partnerships that include corporate and public pension funds, university endowments, foundations, bank holding companies, family trusts and insurance companies.

Since 1995, the principals of Lone Star have organized private equity funds totaling more than $23 billion to invest globally in secured and corporate unsecured debt instruments, real estate related assets and select corporate opportunities.

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing. http://www.hfflp.com/.

CONTACTS:

Clint Corn, HFF Associate Director, 214 265 0880, ccorn@hfflp.com

Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990, lmcdowell@hfflp.com