Capstead Mortgage Corporation Announces Public Offering of Common Stock

Capstead Mortgage Corporation ("Capstead” or the "Company”) (NYSE: CMO) announced today that it has commenced a public offering of 9,000,000 shares of common stock. Capstead intends to grant the underwriters a 30-day option to purchase up to an additional 1,350,000 shares of common stock. All of the shares are being offered by Capstead.

Capstead expects to use the net proceeds from this offering to finance on a leveraged basis purchases of additional agency-guaranteed pass-through securities backed by adjustable-rate residential mortgages, or ARM loans, and for general corporate purposes.

Credit Suisse, BofA Merrill Lynch and J.P. Morgan are acting as joint book-running managers for the offering. JMP Securities is acting as co-manager of the offering.

The offering will be made under Capstead’s effective shelf registration statement filed with the Securities and Exchange Commission. The offering of these securities will be made only by means of a prospectus and an accompanying prospectus supplement. When available, copies of the prospectus supplement and accompanying prospectus may be obtained from:

Credit Suisse Securities (USA) LLC
Attention: Prospectus Department
Eleven Madison Avenue, 3rd Floor
New York, NY 10010
Or by telephone: 800-221-1037
Or by email: usa.prospectus@credit-suisse.com

BofA Merrill Lynch
NC1-004-03-43
200 North College Street, 3rd floor
Charlotte NC 28255-0001
Attn: Prospectus Department
Or by email: dg.prospectus_requests@baml.com

J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Or by telephone: 1-866-803-9204

This press release shall not constitute an offer to sell or a solicitation of an offer to buy shares of common stock, nor shall there be any sale of shares of common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Capstead

Capstead is a self-managed real estate investment trust, or REIT, for federal income tax purposes. The Company earns income from investing in a leveraged portfolio of residential adjustable-rate mortgage pass-through securities, referred to as ARM securities, issued and guaranteed by government-sponsored enterprises, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae.

Statement Concerning Forward-looking Statements

This document contains "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe,” "anticipate,” "expect,” "estimate,” "intend,” "will be,” "will likely continue,” "will likely result,” or words or phrases of similar meaning. Actual results could differ materially from those projected in these forward-looking statements due to a variety of factors, without limitation, fluctuations in interest rates, the availability of suitable qualifying investments, changes in mortgage prepayments, the availability and terms of financing, changes in market conditions as a result of federal corporate and individual tax reform, changes in legislation or regulation affecting the mortgage and banking industries or Fannie Mae, Freddie Mac or Ginnie Mae securities, the availability of new investment capital, the liquidity of secondary markets and credit markets, and other changes in general economic conditions. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date the statement is made and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers of this document are cautioned not to place undue reliance on any forward-looking statements included herein.

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