Capstead Mortgage Corporation Announces Addition to Management Team

Capstead Mortgage Corporation (NYSE: CMO) (“Capstead” or the “Company”) announced today that it has appointed Roy S. Kim as Senior Vice President, Asset & Liability Management.

Andrew F. Jacobs, President and Chief Executive Officer, said, “We are pleased to have Roy assume responsibility for the management of our borrowing relationships as well as other portfolio management functions. Roy has over ten years’ experience trading residential adjustable-rate mortgage (“ARM”) securities at J.P. Morgan Investment Bank in New York and ten years’ experience in various senior financial positions at Bank of America in Charlotte, North Carolina.”

Robert R. Spears, Executive Vice President and Chief Investment Officer, said, “I have known Roy for over 20 years and am extremely excited about him becoming a key member of the Capstead investment team. His experience and skill set will be a perfect fit for our organization.”

About Capstead

Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. Capstead invests in a leveraged portfolio of short-duration residential ARM securities issued and guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae, referred to as agency-guaranteed mortgage securities. Duration is a common measure of market price sensitivity to interest rate movements. A shorter duration generally indicates less interest rate risk.

Capstead’s investment strategy is designed to produce attractive risk-adjusted returns over the long term, while reducing, but not eliminating, sensitivity to changes in interest rates. This strategy differentiates us from our peers because the ARM loans underlying our investment portfolio reset to more current interest rates within a relatively short period of time allowing for the potential recovery of financing spreads that typically contract during periods of rising interest rates and smaller fluctuations in portfolio values, and therefore book value, caused by changes in interest rates compared to portfolios that contain a significant amount of longer-duration ARM and fixed-rate mortgage securities. Utilizing this strategy, Capstead is widely recognized as potentially the most defensively-positioned residential mortgage REIT from an interest rate and credit risk perspective.