Falcon Financial Investment Trust Names Thomas R. Gibson to Board of Trustees

STAMFORD, Conn., July 21 -- Falcon Financial Investment Trust , a specialty finance real estate investment trust focused on the business of originating and servicing loans to automotive dealers, announced today the appointment of Thomas R. Gibson to its Board of Trustees and the resulting expansion of its board to seven trustees.

Thomas R. Gibson co-founded Asbury Automotive Group, Inc. in 1994 to acquire and manage retail automobile dealerships and currently serves as Chairman Emeritus. Prior to the formation of Asbury, Mr. Gibson served as President and CEO of Spectacor Management Group and as President and Chief Operating Officer of Subaru of America. He began his career in the automobile industry in 1967 with the Ford Motor Company, holding various marketing and field management positions in the Lincoln-Mercury and Ford divisions. He holds an M.B.A. from Harvard University and an A.B. from DePauw University. Presently, Mr. Gibson serves on the board of directors of IKON Office Solutions, and Dealer Tire, a privately held tire distribution company.

Vernon B. Schwartz, Falcon Financial's Chairman and Chief Executive Officer, stated, "Our objective is to have a board conversant with all aspects of the automotive industry. The addition of Tom is consistent with that objective and we look forward to benefiting from his extensive multi-faceted expertise."

Thomas R. Gibson commented, "I am delighted to join Falcon Financial's board. This Company's business model fills a critical and unmet need of automotive dealerships for capital. The Company's market niche makes it an ideal company for me to contribute to at the board level. I look forward to my involvement with management and the other members of the board of trustees."

About Falcon Financial Investment Trust

Falcon Financial Investment Trust is a fully integrated real estate investment trust focused solely on the business of originating and servicing loans to automotive dealers in the United States. The Company was founded in 1997 to address the unique capital needs of the U.S. automobile retailing industry. Falcon Financial meets the financing requirements of automotive dealers by offering a variety of fixed and variable rate loan products, including mortgage loans and cash flow franchise loans collateralized by the dealer's real estate and business assets.

Safe Harbor

This press release contains certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. The forward-looking statements included in this press release reflect Falcon Financial Investment Trust's current view about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause future events, achievements or results to differ materially from those expressed by the forward-looking statements. Important factors that could cause Falcon Financial Investment Trust's actual results to differ materially from current expectations reflected in the forward-looking statements included in this press release include, among others, the risk factors discussed in its filings with the Securities and Exchange Commission. Falcon Financial Investment Trust does not intend to and disclaims any duty or obligation to update or revise any forward-looking statements included in this press release to reflect new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Falcon Financial Investment Trust's views as of any date subsequent to July 21, 2004.