Law Offices of Howard G. Smith Announces 35 Days Remaining to Move to Be a Lead Plaintiff in the Shareholder Lawsuit Against NovaStar Financial, Inc. -- NFI

BENSALEM, Pa., March 20, 2007 (PRIME NEWSWIRE) -- Law Offices of Howard G. Smith announces an April 24, 2007, deadline to move to be a lead plaintiff in the securities class action lawsuit filed on behalf of shareholders who purchased the common stock of NovaStar Financial, Inc. ("NovaStar" or the "Company") between May 4, 2006 and February 20, 2007, inclusive (the "Class Period"). The shareholder lawsuit is pending in the United States District Court for the Western District of Missouri.

The Complaint alleges that defendants violated federal securities laws by issuing material misrepresentations to the market concerning the Company's business and financial performance, thereby artificially inflating the price of NovaStar securities.

No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased NovaStar common stock between May 4, 2006 and February 20, 2007, you have certain rights, and have 35 days remaining -- until April 24, 2007 -- in which to move for Lead Plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, Toll-Free at (888) 638-4847, by email to howardsmithlaw@hotmail.com or visit our website at www.howardsmithlaw.com.

More information on this and other class actions can be found on the Class Action Newsline at http://www.primenewswire.com/ca.

CONTACT:  Law Offices of Howard G. Smith, Bensalem, PA
          Howard G. Smith
          (215)638-4847 
          (888)638-4847
          howardsmithlaw@hotmail.com
          www.howardsmithlaw.com