Capstead Mortgage Corporation Announces a Special Dividend of $7.30 Per Common Share and a Special Meeting of Stockholders to Authorize a 1-for-2 Reverse Common Stock Split

Apr 30, 2001, 01:00 ET from Capstead Mortgage Corporation

    DALLAS, April 30 /PRNewswire/ -- Capstead Mortgage Corporation (NYSE:   CMO)
 ("Capstead" or the "Company") today announced that its Board of Directors has
 authorized a special dividend of $7.30 per common share, or approximately
 $200 million of the Company's common stockholders' equity, payable on June 29
 to stockholders of record as of June 13, 2001.  Because of the significance of
 this distribution, the shares will not trade ex-dividend until July 2, 2001.
 Common stockholders who sell their shares after the record date, and through
 the payment date, will also be selling their right to receive the special
 dividend.
     The Company also announced it has called a special meeting of stockholders
 to be held June 15, 2001 for the purpose of approving a 1-for-2 reverse stock
 split of its common stock.  A detailed description of this proposal will be
 provided in a proxy statement expected to be distributed to stockholders on or
 about May 17, 2001.  The record date for determining stockholders entitled to
 notice of and to vote at the special meeting will be the close of business on
 May 11, 2001.
     Commenting on the special dividend, Wesley R. Edens, Chairman of the Board
 and Chief Executive Officer said, "By returning a portion of our equity to our
 common stockholders through this special dividend, we will create a capital
 structure capable of generating enhanced returns to common equity
 stockholders, particularly under current market conditions, while maintaining
 adequate liquidity.  No asset sales will be necessary to fund the dividend.
     "Having taken this step to optimize our capital structure, we continue to
 evaluate suitable investments.  These investments may include commercial and
 residential real estate-related assets which, when combined with the prudent
 use of leverage, can provide attractive returns.
     "Most, if not all, of the special dividend is expected to represent a
 return of capital to our stockholders when combined with regular quarterly
 common dividends.  All stockholders should consult their tax advisors to
 determine the proper characterization of their dividends."
     The Board anticipates establishing the close of business on June 29, 2001,
 as the effective date of the reverse split.  As such, the first day the common
 shares will trade post-split will be July 2, 2001.  This coincides with the
 first day the common shares begin trading ex-dividend.
     Regarding the reverse stock split, Mr. Edens said, "Typically, when a
 stock begins trading ex-dividend, the market price of the shares is adjusted
 to remove the dividend, resulting in a lower price level for the stock.
 Because certain institutional and other investors have investing parameters
 such as stock price levels and because of the significance of this special
 dividend, we are proposing the 1-for-2 reverse stock split.  With the common
 shares scheduled to trade ex-dividend and post-reverse split the same day, we
 anticipate that our common shares will trade at a price level that encourages
 interest in our shares within the financial community and investing public."
     Capstead Mortgage Corporation, a real estate investment trust with assets
 of over $7.5 billion, earns income from investing in mortgage assets and other
 investment strategies.
     This document contains "forward-looking statements" (within the meaning of
 the Private Securities Litigation Reform Act of 1995) that inherently involve
 risks and uncertainties.  The Company's actual results and liquidity can
 differ materially from those anticipated in these forward-looking statements
 because of changes in the level and composition of the Company's investments
 and unforeseen factors.  As discussed in the Company's filings with the
 Securities and Exchange Commission, these factors may include, but are not
 limited to, changes in general economic conditions, the availability of
 suitable investments, fluctuations in and market expectations for fluctuations
 in interest rates and levels of mortgage prepayments, deterioration in credit
 quality and ratings, the effectiveness of risk management strategies, the
 impact of leverage, the liquidity of secondary markets and credit markets,
 increases in costs and other general competitive factors.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X70948385
 
 

SOURCE Capstead Mortgage Corporation
    DALLAS, April 30 /PRNewswire/ -- Capstead Mortgage Corporation (NYSE:   CMO)
 ("Capstead" or the "Company") today announced that its Board of Directors has
 authorized a special dividend of $7.30 per common share, or approximately
 $200 million of the Company's common stockholders' equity, payable on June 29
 to stockholders of record as of June 13, 2001.  Because of the significance of
 this distribution, the shares will not trade ex-dividend until July 2, 2001.
 Common stockholders who sell their shares after the record date, and through
 the payment date, will also be selling their right to receive the special
 dividend.
     The Company also announced it has called a special meeting of stockholders
 to be held June 15, 2001 for the purpose of approving a 1-for-2 reverse stock
 split of its common stock.  A detailed description of this proposal will be
 provided in a proxy statement expected to be distributed to stockholders on or
 about May 17, 2001.  The record date for determining stockholders entitled to
 notice of and to vote at the special meeting will be the close of business on
 May 11, 2001.
     Commenting on the special dividend, Wesley R. Edens, Chairman of the Board
 and Chief Executive Officer said, "By returning a portion of our equity to our
 common stockholders through this special dividend, we will create a capital
 structure capable of generating enhanced returns to common equity
 stockholders, particularly under current market conditions, while maintaining
 adequate liquidity.  No asset sales will be necessary to fund the dividend.
     "Having taken this step to optimize our capital structure, we continue to
 evaluate suitable investments.  These investments may include commercial and
 residential real estate-related assets which, when combined with the prudent
 use of leverage, can provide attractive returns.
     "Most, if not all, of the special dividend is expected to represent a
 return of capital to our stockholders when combined with regular quarterly
 common dividends.  All stockholders should consult their tax advisors to
 determine the proper characterization of their dividends."
     The Board anticipates establishing the close of business on June 29, 2001,
 as the effective date of the reverse split.  As such, the first day the common
 shares will trade post-split will be July 2, 2001.  This coincides with the
 first day the common shares begin trading ex-dividend.
     Regarding the reverse stock split, Mr. Edens said, "Typically, when a
 stock begins trading ex-dividend, the market price of the shares is adjusted
 to remove the dividend, resulting in a lower price level for the stock.
 Because certain institutional and other investors have investing parameters
 such as stock price levels and because of the significance of this special
 dividend, we are proposing the 1-for-2 reverse stock split.  With the common
 shares scheduled to trade ex-dividend and post-reverse split the same day, we
 anticipate that our common shares will trade at a price level that encourages
 interest in our shares within the financial community and investing public."
     Capstead Mortgage Corporation, a real estate investment trust with assets
 of over $7.5 billion, earns income from investing in mortgage assets and other
 investment strategies.
     This document contains "forward-looking statements" (within the meaning of
 the Private Securities Litigation Reform Act of 1995) that inherently involve
 risks and uncertainties.  The Company's actual results and liquidity can
 differ materially from those anticipated in these forward-looking statements
 because of changes in the level and composition of the Company's investments
 and unforeseen factors.  As discussed in the Company's filings with the
 Securities and Exchange Commission, these factors may include, but are not
 limited to, changes in general economic conditions, the availability of
 suitable investments, fluctuations in and market expectations for fluctuations
 in interest rates and levels of mortgage prepayments, deterioration in credit
 quality and ratings, the effectiveness of risk management strategies, the
 impact of leverage, the liquidity of secondary markets and credit markets,
 increases in costs and other general competitive factors.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X70948385
 
 SOURCE  Capstead Mortgage Corporation