SFO Merrill Lynch

JACKSONVILLE, Fla., Aug. 14 /PRNewswire-FirstCall/ -- Sunset Financial Resources, Inc. (NYSE:SFO), a specialty finance REIT, announced today that it has set Monday, August 21, 2006 as the record date for the special meeting of its stockholders to consider the previously announced merger with Alesco Financial Trust and related matters. Only stockholders of record at the close of business on the record date will be entitled to vote at the special meeting. Sunset presently anticipates holding the special meeting in the beginning of October and will issue a press release once it has scheduled the meeting. About Sunset Financial Resources, Inc. Sunset is a specialty finance REIT headquartered in Jacksonville, Florida and trades on the New York Stock Exchange under the symbol "SFO". Certain statements in this news release may constitute "forward-looking statements" within the meaning of the federal securities laws and involve risks, uncertainties and other factors, which may cause the actual performance of Sunset Financial Resources, Inc. to be materially different from the performance expressed or implied by such statements. These risks include the failure of the Company to successfully execute its business plan, gain access to additional financing, the availability of additional loan portfolios for future acquisition, continued qualification as a REIT, the cost of capital, as well as the additional risks and uncertainties detailed in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. Sunset has filed a preliminary proxy statement/prospectus with the Securities and Exchange Commission and will file a final proxy statement/prospectus and a tender offer statement on Schedule TO with the SEC. Investors are urged to read the proxy statement/prospectus, the tender offer statement (including an offer to purchase and related documents) when they becomes available because they will contain important information. These materials will be available free of charge at the SEC's website, http://www.sec.gov/, or by directing a request to . Sunset, its directors, and its executive officers may be considered participants in the solicitation of proxies in connection with the proposed transactions. Information about the directors and executive officers of Sunset and their ownership of Sunset stock is set forth in the 2005 Annual Report on Form 10K. Investors may obtain additional information regarding the interests of such participants by reading the proxy statement/prospectus for the proposed merger when it becomes available. Contact: Stacy M. Riffe Chief Executive Officer (904) 425-4365 Jeffrey Goldberger / Garth Russell KCSA Worldwide (212) 896-1249 / (212) 896-1250 / DATASOURCE: Sunset Financial Resources, Inc. CONTACT: Stacy M. Riffe, Chief Executive Officer, +1-904-425-4365, ; or Jeffrey Goldberger, +1-212-896-1249, , or Garth Russell, +1-212-896-1250, , both of KCSA Worldwide

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