Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against Centerline Holding Company

NEW YORK, NY--(Marketwire - February 5, 2008) - Abraham, Fruchter & Twersky, LLP filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Centerline Holding Company ("Centerline" or the "Company") (NYSE: CHC) during the period between March 12, 2007 through December 28, 2007 (the "Class Period").

The Complaint alleges that during the Class Period, Centerline, and certain of its officers and directors, violated the federal securities laws by issuing materially false and misleading statements about Centerline's business model and financial condition, which had the effect of artificially inflating the market price of the Company's common stock. The Complaint alleges that the Company misrepresented and failed to disclose that: (i) it was in the process of disposing of its tax-exempt revenue bond portfolio, which had provided the Company with substantial revenues and enabled it to pay a sizable dividend; (ii) it was contemplating a large, related-party transaction that would require the Company to pay 11% interest per year to insiders; and (iii) defendants' positive statements about the Company's performance and prospects were lacking in any reasonable basis at all relevant times.

Centerline is a publicly owned investing holding firm, and through its subsidiaries, operates as a real estate finance and investing company. On December 28, 2007, the Company issued a press release announcing that: (i) it had sold its $2.8 billion tax-exempt affordable housing bond portfolio to Freddie Mac, which will result in one-time charges of $45 million to $55 million in the fourth quarter of 2007; (ii) the Company issued 12.2 million shares of newly-issued convertible stock with an 11% dividend annual distribution rate, in exchange for a $131 million investment from an affiliate of The Related Companies L.P. (the "Related Companies"), which is owned and controlled by Stephen M. Ross, Chairman of the Board of Centerline and the founder and Chairman of the Related Companies, and Jeff T. Blau, a managing trustee of both Centerline and the Related Companies; (iii) the Company was repositioning itself as an alternative asset manager; (iv) the Company would be reducing its dividend to $0.60 per share; and (v) the Company would be reducing its 2008 earnings guidance to between $1.00 per share and $1.10 per share.

Following this announcement, shares of Centerline's stock fell $2.57 per share, representing a 25% decline, to close at $7.70 per share, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of Centerline common stock during the Class Period (the "Class"). The Plaintiff is represented by Abraham, Fruchter & Twersky, LLP which has extensive experience in securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services. If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Jeffrey S. Abraham or Arthur J. Chen of Abraham, Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at jabraham@aftlaw.com or achen@aftlaw.com, respectively. If you wish to serve as lead plaintiff, you must move the Court no later than March 18, 2008. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

Contact Information: Contact: Jeffrey S. Abraham, Esq. Arthur J. Chen, Esq. Abraham, Fruchter & Twersky, LLP One Penn Plaza, Suite 2805 New York, New York 10119 Tel.: (212) 279-5050