CapLease Announces Closing of Offerings Raising $55 Million of Additional Capital

NEW YORK--(Business Wire)--
CapLease, Inc. (NYSE: LSE)announced today that it has closed on its previously
announced common stock and Series A preferred stock offerings. The separate
offerings which were made off of the Company`s universal shelf registration
statement have raised approximately $55 million of additional capital which
CapLease intends to use for one or more of the following purposes: reducing
recourse debt obligations, including our credit facility which currently stands
at $110.5 million outstanding, adding new portfolio investments and other
general corporate purposes.

The Series A preferred stock offering raised $40 million of net proceeds to the
Company. The shares were issued at a price of $23.06 per share, resulting in an
annual dividend yield of 9.00% inclusive of the 8.125% annual dividend rate on
the shares. The offering of common stock raised $15 million of net proceeds to
the Company. The shares of common stock were issued to an affiliate of Golden
Gate Capital at a price of $4.77 per share.

Paul McDowell, Chairman and Chief Executive Officer of CapLease, stated, "We are
pleased to announce the closing of these two transactions, as the proceeds of
$55 million, coupled with other initiatives we are undertaking, will increase
the Company`s financial flexibility and afford greater opportunities to continue
to lower debt and re-start portfolio growth. The excellent execution we achieved
on the Series A preferred stock offering reflects the quality of our portfolio
and the significant balance sheet progress we have made over the past 15 months.
Our transaction with Golden Gate Capital provides us with a high-quality,
long-term investor who recognizes the Company`s value and supports our strategic
direction."

Inclusive of the offering proceeds and after initially utilizing $13.5 million
of cash to lower recourse credit facility borrowings to the current level of
$110.5 million, CapLease`s cash on hand now stands at $94.5 million.

About CapLease:

CapLease, Inc. is a real estate investment trust, or REIT, that invests
primarily in single tenant commercial real estate assets subject to long-term
leases to high credit quality tenants.

ICR, Inc.
Brad Cohen, 212-217-6393
bcohen@icrinc.com

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