Real Estate Central

PHILADELPHIA, May 15 /PRNewswire-FirstCall/ — Luminent Mortgage
Capital, Inc. (OTC Bulletin Board: LUMC) is pleased to announce the
immediate appointment of Zachary H. Pashel as its President and Chief
Executive Officer. Mr. Pashel has been an independent director of Luminent
since September 2007. Prior to assuming his new position as President and
CEO of Luminent, Mr. Pashel was Executive Vice President and Head of
Structured Finance at The Chotin Group Corporation, where he oversaw its $6
billion asset management business. These assets consisted of structured
products primarily focused on residential mortgage credit and
collateralized debt obligations.

“We believe Mr. Pashel is the ideal candidate to take Luminent
forward,” commented Craig A. Cohen, Chairman of the Board of Directors.
“His extensive experience in the management of mortgage-related assets
provides him with the desired background to lead Luminent as it works to
diversify its product suite upon completion of its proposed conversion to a
publicly traded partnership and to build a premier asset management
business that can look beyond the national market to explore more global
opportunities. We are fortunate to have him on our team.”

Mr. Pashel proved enthusiastic about his new position, “In my role as
independent director, I recognized the potential of the Luminent platform
and the quality of the team behind it. Now, as its President and Chief
Executive officer, I look forward to working alongside these excellent
professionals, directing their specialized knowledge to revitalize Luminent
and help it move in a new direction as it works towards developing a more
global focus. I am confident that we have the capacity to restructure the
company, taking advantage of the opportunities that have resuscitated in
the mortgage market and becoming important players in this new
environment.”

The appointment of Mr. Pashel as head of the specialized professionals
at Luminent is considered a fundamental step in its imminent restructuring
plans. Luminent LLC recently filed an S-4 registration statement with the
Securities and Exchange Commission with respect to its proposed conversion
from a Maryland corporation qualified as a Real Estate Investment Trust, or
REIT, to a Delaware limited liability company that would be treated as a
publicly-traded partnership, or PTP, for U.S. federal income tax purposes.
Contingent on the completion of the restructuring, the PTP plans to
diversify and offer fee-based services including asset management advisory
services, sub-manager services for investment funds and credit risk
management. Luminent also aims to develop its services platform to explore
international opportunities. Luminent’s board expects this new structure
will significantly enhance its flexibility for investment diversification
and cash management.

Prior to his role at The Chotin Group Corporation, Mr. Pashel was a
principal at Deson & Co. and Greyrock Capital partners. Both groups
specialized in middle market private equity and M&A advisory services. Mr.
Pashel succeeds Mr. S. Trezevant Moore, Jr. in the role of President and
Chief Executive Officer.

This news release and Luminent’s filings with the Securities and
Exchange Commission contain forward-looking statements that predict or
describe future events or trends. The matters described in these
forward-looking statements are subject to known and unknown risks,
uncertainties and other unpredictable factors, many of which are beyond
Luminent’s control and are based on the information currently available to
Luminent’s management. Luminent faces many risks that could cause its
actual performance to differ materially from the results expressed or
implied by its forward-looking statements, including, without limitation,
the possibilities that interest rates may change, that principal payment
rates may change, that Luminent may experience unanticipated margin calls,
that the collateral securing its indebtedness may become illiquid with a
resulting drop in value, that Luminent may not be able to maintain its
qualification as a REIT for federal income tax purposes, that Luminent may
experience the risks associated with investing in real estate, including
changes in business conditions and the general economy, and that Luminent’s
strategies may not be effective (including portfolio management and hedging
strategies and strategy to protect net interest spreads). Luminent’s
filings with the Securities and Exchange Commission contain a more complete
description of these and many other risks to which Luminent is subject.
Because of those risks, Luminent’s actual results, performance or financial
condition may differ materially from the results, performance or financial
condition contemplated by its forward-looking statements. The information
set forth in this news release represents management’s current expectations
and intentions. Luminent assumes no responsibility to update or revise any
forward-looking statements, whether as a result of new information, future
developments or otherwise. The contents of this press release is qualified
in its entirety to the appropriate documents filed with the SEC on Form
8-K.

ADDITIONAL INFORMATION

Luminent LLC, an affiliate of the Company, has filed a Form S-4
registration statement with the SEC, which contains a preliminary proxy
statement/prospectus relating to the Company’s 2008 annual meeting of
stockholders and other relevant documents in connection with the proposed
restructuring. The definitive proxy statement/prospectus will be mailed to
the stockholders of the Company when it becomes available. STOCKHOLDERS OF
THE COMPANY ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT
BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS
WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION.

The proxy statement/prospectus and other relevant materials, when they
become available, may be obtained free of charge at the SEC’s web site at
http://www.sec.gov. In addition, investors and stockholders may obtain free copies
of the documents by contacting Karen Chang, Luminent Mortgage Capital,
Inc., One Commerce Square, 21st floor, 2005 Market Street, Philadelphia, PA
19103; telephone: (215) 564-5900.

The Company and its directors, executive officers and other members of
its management and employees may be deemed to be participants in the
solicitation of proxies from its stockholders in connection with the
proposed merger. Information concerning such participants’ ownership of the
Company’s common stock will be set forth in the proxy statement/prospectus
when it becomes available. This communication does not constitute an offer
of any securities for sale.



Contact:
Karen Chang
Senior Vice President &
Chief Financial Officer
Phone: (215) 564-5900
Email: ir@luminentcapital.com


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Source: Real Estate Newswire