Capstead Mortgage Corporation Prices Public Offering of 7.50% Series E Cumulative Redeemable Preferred Stock

Capstead Mortgage Corporation CMO announced that it priced an underwritten public offering of 6 million shares of its 7.50% Series E Cumulative Redeemable Preferred Stock (the “7.50% Series E Preferred Stock”), liquidation preference $25.00 per share, for gross proceeds of $150 million, before deducting the underwriting discount and estimated offering expenses. The Company has granted the underwriters a 30-day option to purchase up to 900,000 additional shares of 7.50% Series E Preferred Stock to cover over-allotments, if any. The offering is subject to customary closing conditions and is expected to close on or about May 13, 2013. Capstead intends to use the net proceeds from this offering, together with cash on hand as necessary and deemed prudent, to redeem all or a portion of the Company's outstanding Series A Preferred Stock and Series B Preferred Stock. Should the Company conclude not to use all or a portion of the net proceeds from this offering to fund a redemption transaction, such proceeds will be used for general corporate purposes. Morgan Stanley & Co. LLC and UBS Securities LLC are serving as joint book-running managers on the offering. Keefe, Bruyette & Woods, Inc. and RBC Capital Markets, LLC are serving as joint lead managers. JMP Securities LLC and Mitsubishi UFJ Securities (USA), Inc. are serving as co-managers. The offering is being made pursuant to the Company's existing shelf registration statement previously filed with the Securities and Exchange Commission that became effective upon filing. This press release is neither an offer to sell nor a solicitation of an offer to buy shares of 7.50% Series E Preferred Stock. The offering of these securities will be made only by means of a prospectus and related prospectus supplement, a copy of which may be obtained by contacting: