OKLAHOMA CITY, OK--(MARKET WIRE)--May 19, 2008 -- On May 16, 2008, a class action lawsuit was filed in the United States District Court for the Central District of California against Downey Financial Corp. (NYSE:DSL - News). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market which had the effect of artificially inflating the market price. The class period is from October 16, 2006 through March 14, 2008.

Plaintiff seeks to recover damages on behalf of the Class. If you are a member of the Class as described above, you may move the Court no later than Tuesday, July 15, 2008, to serve as a lead plaintiff for the Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

If you wish to discuss this action, participate in this or any other lawsuit, or have any questions or concerns regarding this notice, or preservation of your rights, please contact:

     William B. Federman
     FEDERMAN & SHERWOOD
     10205 North Pennsylvania Avenue
     Oklahoma City, OK 73120
     Email to: wfederman@aol.com
     http://www.federmanlaw.com