April 1, 2003--Redwood Trust, Inc. (NYSE:RWT), an investor in real estate loans, today announced its intention to redeem all 902,068 outstanding shares of its Class B 9.74% Cumulative Convertible Preferred Stock (NYSE:RWT-PrB, CUSIP #758075600) by converting those shares into shares of its Common Stock. The conversion date is May 2, 2003, at 5:00 p.m. Eastern Time at which time each share of Preferred Stock will be converted into one share of Common Stock.

QUANTUMONLINE.COM SECURITY DESCRIPTION:  Redwood Trust Inc., Class B 9.74% Cumulative Convertible Preferred Stock, liquidation preference $31 per share, redeemable at the issuer's option on or after 10/01/1999 one share of common stock only when the price of the common equals or exceeds $31 per common share, plus accrued and unpaid dividends, with no stated maturity, and with distributions of 9.74% per annum (or the amount equal to the dividend on the number on common shares into which the preferred is convertible) paid quarterly on 1/21, 4/21, 7/21 & 10/21 to holders of record on the day fixed by the board, not more than 60 days prior to the payment date. The preferred shares are convertible any time at the holder's option into one common share of Redwood Trust Inc. (NYSE: RWT), an initial conversion price of $31 per common share. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the convertible preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.

Stock Exchange	Cpn Rate Ann Amt	LiqPref CallPrice	Call Date Matur Date	Moodys/S&P Dated	Conv Shrs Conv Price	Distribution Dates	15% Tax Rate
NYSE Chart	9.74% $3.0194	$31.00 $31.00	Called for 5/02/2003 None	NF NF 4/19/2003	1.00 $31.00	1/21, 4/21, 7/21 & 10/21 Click for MW ExDiv Date Click for Yahoo ExDiv Date	No

Company's Online Information Links

HOME PAGE:     http://www.redwoodtrust.com/
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Online Company Profile	Go to Online Profile

Company's Online SEC EDGAR Filings

Company's SEC EDGAR Filings

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Company's Email Address Links

Email Address	nicole.klock@redwoodtrust.com
Email Request Form on Website	Go to Email Form

Address and Phone Numbers

Address:   591 Redwood Highway, Suite 3100, Mill Valley, CA 94941
Main Phone Number	415-389-7373
Fax Number	415-381-1773
Investor Relations   Nicole Klock	415-380-2321
Toll Free Phone Number	Unknown

CHR - George Bull

CFO - Harold F. Zagunis