INVESTOR ALERT: KGS Notifies KKR Financial Holdings, LLC Shareholders That They Have Until October 6, 2008 to File Lead Plaintiff Application in Securities Class Action Lawsuit -- KFN

NEW ORLEANS, LA--(Marketwire - August 7, 2008) - Kahn Gauthier Swick, LLC ("KGS") reminds shareholders that October 6, 2008 is the deadline to file lead plaintiff applications in a securities class action pending in the United States District Court for the Southern District of New York, on behalf of shareholders who acquired the common stock of KKR Financial Holdings ("KFN" or the "Company") (NYSE: KFN) in connection with the Company's Registration Statement and Prospectus (the "Registration Statement") issued pursuant to its May 4, 2007 merger and share issuance ("Merger").

If you would like to discuss your legal rights, you may e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, via cell phone after hours at 504-301-7900, or by email at lewis.kahn@kgscounsel.com.

KFN and certain of its officers and directors are charged with including, or allowing the inclusion of, materially false and misleading statements in the Registration Statement issued in connection with the Company's Merger, in violation of the Securities Act of 1933. In particular, the complaint charges KFN with misrepresenting the risk related to the mortgage backed securities held in its portfolio. From highs of over $25 per share in May through mid-July 2007, shares of KFN currently trade at approximately $10 per share.

If you wish to serve as lead plaintiff in this class action lawsuit, you must move the Court no later than October 6, 2008. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, after hours via cell phone 504-301-7900, or by email at lewis.kahn@kgscounsel.com. To learn more about KGS, you may visit www.kgscounsel.com. KGS is a law firm focused on securities class action litigation with offices in New Orleans and New York City.

KGS' lawyers have significant experience litigating complex securities class actions. Among other cases, KGS has been appointed Lead or Co-Lead Counsel in the following securities cases: In re: U.S. Auto Parts Networks, Inc. Securities Litigation, C.D. Cal.; In re Optionable, Inc. Securities Litigation, S.D.N.Y.; In re Xethanol Corporation Securities Litigation, S.D.N.Y.; Pixelplus Co. Ltd., S.D.N.Y.; In re Witness Systems Inc. Securities Litigation, N.D. Ga.; Whitney Information Network, M.D. Fla.; Bodisen Biotech, Inc., S.D.N.Y.; Pegasus Wireless Corp., S.D. Fla.; In re Xinhua Finance Media, Ltd. Securities Litigation, S.D.N.Y.; Terayon Comm. Systems Inc., N.D. Cal.; Gaming Partners, D. Nev.; and In re BigBand Networks, Inc. Securities Litigation, N.D. Cal.

SPECIAL NOTICE: KGS encourages you to carefully evaluate any firm you may consider to represent your interests in the KFN class action. The Private Securities Litigation Reform Act ("PSLRA") permits KFN shareholders to choose counsel of their choice to prosecute this action. Critical components of a law firm's ability to successfully prosecute this action and obtain a strong recovery for you include the resources it will dedicate to prosecution of the case, including the number of lawyers the firm has available for the KFN action in particular, AND especially the quality of the firm's work. Interested shareholders are encouraged to call for consultation and to request more information about KGS. While KGS has not filed suit yet, the firm is currently conducting its own investigation of KFN and invites shareholders to evaluate its complaint when choosing counsel.

Contact Information: Contact: Lewis Kahn Kahn Gauthier Swick, LLC 1-866-467-1400, ext. 100 Lewis.kahn@kgscounsel.com