Doral Financial Closes Sale of Shares to Doral Holdings Delaware, LLC

July 17, 2007

Doral Financial Corporation (NYSE:DRL) (“Doral” or the “Company”) announced today that it had closed the sale of 968,263,968 shares of its common stock, $0.01 par value per share, to Doral Holdings Delaware, LLC (“Doral Holdings”), a newly formed entity in which Bear Stearns Merchant Banking and other investors, including funds managed by Marathon Asset Management, Perry Capital, the D. E. Shaw group and Tennenbaum Capital Partners, invested. Following the closing, Doral Holdings owns approximately 90% of the common shares of Doral that are outstanding.

The Company’s currently outstanding shares of common stock will continue to be traded in the New York Stock Exchange under the Company’s current symbol, “DRL.”

Glen R. Wakeman, Chief Executive Officer and President, stated, “We appreciate the confidence which professional investors are showing in Doral Financial’s potential through this substantial investment. We are also most thankful for the support that we have received from our depositors, our customers, our regulators, our employees and existing shareholders with respect to our successful recapitalization. Doral Financial now moves forward in sound fashion with Doral Bank as its strong core foundation. Our future growth will be pursued on a path of compliance, productivity and top-of-the-line service to build the value of Doral to all its constituents.”

“The investment by Doral Holdings demonstrates our commitment to Doral’s management team and their strategic vision. The investor group recognizes that a lot of work and dedication will be required on the part of Doral’s management and its employees to continue to build Doral’s brand and profitability. We are looking forward to the opportunities that lay ahead,” said David E. King, Senior Managing Director and Partner of Bear Stearns Merchant Banking.