NEW YORK, Oct. 7 /PRNewswire/ -- The following statement is being issued by Bernstein Litowitz Berger & Grossmann LLP regarding the RAIT Financial Trust Securities Litigation.

                       IN THE UNITED STATES DISTRICT COURT
                     FOR THE EASTERN DISTRICT OF PENNSYLVANIA


    IN RE RAIT FINANCIAL TRUST
    SECURITIES LITIGATION              Master File No. 2:07-cv-03148-LDD


                      SUMMARY NOTICE OF PROPOSED SETTLEMENT,
             SETTLEMENT FAIRNESS HEARING, AND MOTION FOR ATTORNEYS'
                  FEES AND REIMBURSEMENT OF LITIGATION EXPENSES

TO: ALL PERSONS OR ENTITIES that acquired the securities of RAIT Financial Trust ("RAIT") during the period from June 8, 2006 through August 3, 2007, inclusive, including securities purchased in the January 2007 COMMON Stock Offering, July 2007 Preferred Stock Offering, AND April 2007 Note Offering, and who suffered damages as a result.

PLEASE READ THIS NOTICE CAREFULLY. YOUR RIGHTS WILL BE AFFECTED BY A CLASS ACTION LAWSUIT PENDING IN THIS COURT.

YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Eastern District of Pennsylvania (i) of the pendency of this action (the "Consolidated Action") as a class action on behalf of the persons and entities described above (the "Class"), except for certain persons and entities who are excluded from the Class by definition; and (ii) that a settlement for $32 million in cash has been proposed. A hearing will be held on December 10, 2009, at 10:00 a.m., before the Honorable Legrome D. Davis, at the United States District Court for the Eastern District of Pennsylvania, 601 Market Street, Courtroom 6A, Philadelphia, Pennsylvania 19106 (i) to determine whether the proposed Settlement should be approved by the Court as fair, reasonable, and adequate; (ii) to determine whether the Settled Claims against the Settling Defendants and other Released Parties should be dismissed with prejudice; (iii) to determine whether the proposed Plan of Allocation should be approved as fair and reasonable; and (iv) to consider the application of Lead Counsel for attorneys' fees and reimbursement of expenses.

IF YOU ARE A MEMBER OF THE CLASS DESCRIBED ABOVE, YOUR RIGHTS WILL BE AFFECTED BY THE PENDING CONSOLIDATED ACTION AND THE SETTLEMENT, AND YOU MAY BE ENTITLED TO SHARE IN THE SETTLEMENT FUND. If you have not yet received the full printed Notice of Pendency of Class Action and Proposed Settlement, Settlement Fairness Hearing and Motion for Attorneys' Fees and Reimbursement of Litigation Expenses (the "Notice") and Proof of Claim form (the "Claim Form"), you may obtain copies of these documents by contacting the Claims Administrator:

                In Re RAIT Financial Trust Securities Litigation
                       c/o The Garden City Group, Inc.
                                P.O. Box 9507
                           Dublin, OH 43017-4807
                               1-888-862-9733

Copies of the Notice and Claim Form can also be downloaded from the website maintained by the Claims Administrator, www.raitsecuritieslitigation.com, or from Lead Counsel's website, www.blbglaw.com.

If you are a Class Member, in order to be eligible to share in the distribution of the Net Settlement Fund, you must submit a Claim Form no later than January 25, 2010. If you are a Class Member and do not exclude yourself from the Class, you will be bound by any judgment entered in the Consolidated Action whether or not you make a Claim. To exclude yourself from the Class, you must submit a request for exclusion such that it is received no later than November 17, 2009, in accordance with the instructions set forth in the Notice. Any objections to the proposed Settlement, Plan of Allocation and/or application for attorneys' fees and reimbursement of expenses must be filed with the Court and delivered to Lead Counsel for the Class and representative counsel for the Settling Defendants such that they are received no later than November 17, 2009, in accordance with the instructions set forth in the Notice. If you are a Class Member and do not submit a proper Claim Form, you will not share in the Settlement Fund but you will nevertheless be bound by the Judgment of the Court.

PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE. Inquiries, other than requests for the Notice and Claim Form, may be made to Lead Counsel:

                               Chad Johnson, Esq.
                  Bernstein Litowitz Berger & Grossmann LLP
                          1285 Avenue of the Americas
                              New York, NY 10019
                               1 (800) 380-8496

                                                      By Order of the Court

SOURCE Bernstein Litowitz Berger & Grossmann LLP

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