FBR closes $800 million 144A equity private offering for Rosetta Resources Inc.

ARLINGTON, Va., July 20, 2005 (PRNewswire-FirstCall) — Friedman, Billings, Ramsey Group, Inc. announced that its subsidiary, Friedman, Billings, Ramsey & Co., has closed an $800 million offering of common shares for Rosetta Resources Inc. (Rosetta), a newly formed company that has purchased all of the domestic oil and gas exploration and production assets formerly owned by Calpine Corporation, a major international power company.

In the offering, Rosetta sold an aggregate of 45,312,500 shares of its common stock in a private placement for aggregate gross proceeds of $725 million pursuant to exemptions from the Securities Act of 1933 under Rule 144A, Regulation S and Regulation D and which shares may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Rosetta used the net proceeds from the transaction, together with $325 million of proceeds from a new credit facility, to purchase all of Calpine’s domestic oil and gas exploration and production assets.

Following this initial transaction, the overallotment option granted by Rosetta to the placement agent for the transaction was exercised to the extent of 4,687,500 shares of common stock. As a result of the sale of the overallotment shares, Rosetta received aggregate gross proceeds of $75 million which Rosetta will use for general corporate purposes.

FBR served as sole initial purchaser and placement agent for the offering.

“The success of this offering demonstrates the confidence that investors have in the magnitude of this opportunity, as well as our plans and our capabilities,” said B.A. (Bill) Berilgen, Chairman, President and Chief Executive Officer of Rosetta Resources Inc. “We appreciate FBR’s efforts on our behalf.”

“FBR led this transaction because of our belief in the quality of the Rosetta management team and the strength of their assets and business plan,” said Eric F. Billings, Chairman and Chief Executive Officer of FBR. “FBR is pleased to have assisted in providing Rosetta Resources, Inc. with its initial capitalization.”

About Rosetta Resources Inc.

Rosetta Resources Inc. is an independent oil and gas company engaged in the acquisition, exploration, development and production of oil and gas properties in North America. Operations are concentrated in the Sacramento Basin of California, South Texas, the Gulf of Mexico and the Rocky Mountains. Rosetta currently has 100 employees with primary offices in Houston, Texas and Denver, Colorado, and field offices in Rio Vista, California, Laredo, Texas and Magnolia, Arkansas.

About Friedman, Billings, Ramsey Group Inc. [ www.fbr.com ]

Friedman, Billings, Ramsey Group Inc. provides investment banking*, institutional brokerage*, asset management, and private client services through its operating subsidiaries and invests in mortgage-related assets and merchant banking opportunities. FBR focuses capital and financial expertise on eight industry sectors: consumer, diversified industrials, energy and natural resources, financial institutions, healthcare, insurance, real estate, and technology, media and telecommunications. FBR, headquartered in the Washington, D.C. metropolitan area, with offices in Arlington, Va. and Bethesda, Md., also has offices in Boston, Cleveland, Dallas, Denver, Houston, Irvine, London, New York, Phoenix, San Francisco, Seattle, and Vienna.

* Friedman, Billings, Ramsey & Co., Inc.


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