Gramercy Capital Receives NYSE Notice Due to Delay in Filing of Form 10-K (GKK)

Gramercy Capital Corp. GKK today announced that the Company received, as expected, a notice from the NYSE indicating that Gramercy Capital Corp. is not in compliance with the NYSE listed company manual Section 802.01E due to a delay in the filing of the Company's annual report on Form 10-K for the fiscal year ended December 31, 2010. The delay arises, as previously disclosed, as a result of the continuing uncertainty regarding whether and on what terms, if any, the Company will be able to extend, modify, restructure or refinance its $240.5 million mortgage loan (the "Goldman Mortgage Loan") with Goldman Sachs Mortgage Company ("GSMC"), Citicorp North America, Inc. ("Citicorp") and SL Green Realty Corp. ("SL Green"), and its $549.7 million senior and junior mezzanine loans (the "Gramercy Realty Mezzanine Loans") with KBS Debt Holdings, LLC ("KBS"), GSMC, Citicorp and SL Green. The maturity date of the Goldman Mortgage Loan and the Gramercy Realty Mezzanine Loans was extended from March 13, 2011 to April 15, 2011. The maturity date extension was intended to provide the parties additional time (i) to exchange and consider proposals for an extension, modification, restructuring or refinancing of the Goldman Mortgage Loan and the Gramercy Realty Mezzanine Loans (collectively, the "Gramercy Realty Loans") and, if such discussions fail, (ii) to explore an orderly transition of the collateral securing the Gramercy Realty Loans to the lenders. There can be no assurance of when or if the Company will be able to accomplish such extension, modification, restructuring or refinancing, or on what terms such extension, modification, restructuring or refinancing, if any, would be. The Company plans to file its Form 10-K for the fiscal year ended December 31, 2010 as promptly as practicable following the completion of these matters. The Company's shares remain listed on the NYSE and the Company intends to cooperate with the procedures communicated to the Company by the NYSE.