ISS Recommends Vote against Sunset Financial Resources (SFO) Merger with Alesco Financial Trust

  
    
  
  
    
      Institutional Shareholder Services (“ISS”), 
      respected and influential provider of voting advisory services to 
      institutional investors worldwide, recommends that its clients vote on 
      the GREEN proxy card AGAINST ALL PROPOSALS being considered at the 
      Sunset Financial Resources (NYSE:SFO) Special Meeting of Stockholders 
      scheduled for October 6, 2006, Western Investment Hedged Partners LP 
      announced today.
    
    
      In making its recommendation to vote AGAINST Sunset’s 
      proposed merger with Alesco Financial Trust, ISS stated that it does “not 
      think the merger is clearly beneficial to shareholders, as it assigns 
      liquidation-like values to Sunset, a management agreement with an 
      inherently high level of conflicts of interest and losing control of the 
      company with no premium.” ISS went on to 
      recommend a vote AGAINST the long-term incentive plan and the proposal 
      to adjourn the meeting to allow for additional proxy solicitation.
    
    
      Art Lipson, of Western Investment, commented: “We 
      believe that ISS has reached the right conclusion that this transaction 
      undervalues Sunset. It changes Sunset’s 
      fundamental investment strategy and management without shareholder 
      approval and dramatically increases the fees and expenses Sunset holders 
      will have to bear going forward. We think it is simply a bad deal that 
      should be rejected.”
    
    
      Mr. Lipson added: “We believe there are better 
      alternatives available to Sunset than this merger proposal. We intend to 
      propose a slate of nominees for election to Sunset’s 
      board at the 2006 Annual Meeting of Stockholders that will represent 
      stockholders’ interests and work to maximize 
      stockholder value. We have had discussions with Michael Tokarz regarding 
      the future management of Sunset and look forward to continuing those 
      discussions.”
    
    
      Since the Special Meeting is only days away, Western Investment is 
      asking Sunset stockholders to vote their shares as soon as possible. 
      Holders may vote by phone at 1-800-454-8683 or internet at www.proxyvote.com. 
      Please have your 12-digit control number on your GREEN proxy card 
      available when you vote. Only the latest dated proxy counts, so even if 
      you have already sent in a proxy to Sunset, you have every legal right 
      to change your vote and vote AGAINST Sunset’s 
      proposals by using the GREEN proxy card.
    
  
Institutional Shareholder Services ("ISS"), respected and
influential provider of voting advisory services to institutional
investors worldwide, recommends that its clients vote on the GREEN
proxy card AGAINST ALL PROPOSALS being considered at the Sunset
Financial Resources (NYSE:SFO) Special Meeting of Stockholders
scheduled for October 6, 2006, Western Investment Hedged Partners LP
announced today.

   In making its recommendation to vote AGAINST Sunset's proposed
merger with Alesco Financial Trust, ISS stated that it does "not think
the merger is clearly beneficial to shareholders, as it assigns
liquidation-like values to Sunset, a management agreement with an
inherently high level of conflicts of interest and losing control of
the company with no premium." ISS went on to recommend a vote AGAINST
the long-term incentive plan and the proposal to adjourn the meeting
to allow for additional proxy solicitation.

   Art Lipson, of Western Investment, commented: "We believe that ISS
has reached the right conclusion that this transaction undervalues
Sunset. It changes Sunset's fundamental investment strategy and
management without shareholder approval and dramatically increases the
fees and expenses Sunset holders will have to bear going forward. We
think it is simply a bad deal that should be rejected."

   Mr. Lipson added: "We believe there are better alternatives
available to Sunset than this merger proposal. We intend to propose a
slate of nominees for election to Sunset's board at the 2006 Annual
Meeting of Stockholders that will represent stockholders' interests
and work to maximize stockholder value. We have had discussions with
Michael Tokarz regarding the future management of Sunset and look
forward to continuing those discussions."

   Since the Special Meeting is only days away, Western Investment is
asking Sunset stockholders to vote their shares as soon as possible.
Holders may vote by phone at 1-800-454-8683 or internet at
www.proxyvote.com. Please have your 12-digit control number on your
GREEN proxy card available when you vote. Only the latest dated proxy
counts, so even if you have already sent in a proxy to Sunset, you
have every legal right to change your vote and vote AGAINST Sunset's
proposals by using the GREEN proxy card.