Capstead Mortgage Corporation Declares a $0.52 First Quarter 2008 Common Dividend

DALLAS--(Business Wire)--
Capstead Mortgage Corporation (NYSE: CMO) announced today that it
will pay a first quarter 2008 dividend of 52 cents per common share
payable on April 21, 2008 to stockholders of record as of March 31,
2008.

Commenting on the current dividend and market conditions, Andrew
F. Jacobs, President and Chief Executive Officer said, "Regarding
current quarter portfolio performance, we anticipate exceeding our
previous guidance for financing spreads of 152 basis points and are
pleased to more than double our common dividend to $0.52 per share. We
believe financing spreads are poised to improve further, particularly
given market expectations for further reductions in the federal funds
target rate.

"Our current portfolio leverage of less than 10 times long-term
investment capital provides us with significant capital resources to
address increased liquidity concerns caused by recent developments
associated with Fannie Mae and Freddie Mac in particular and the
health of the financial markets in general. We intend to continue to
execute our core investment strategy of conservatively managing a
leveraged portfolio of agency-guaranteed residential ARM securities
that can produce attractive risk-adjusted returns over the long term
while reducing but not eliminating sensitivity to changes in interest
rates."

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's core strategy is managing a leveraged
portfolio of residential mortgage securities consisting almost
exclusively of adjustable-rate mortgage, or ARM, securities issued and
guaranteed by government-sponsored entities, either Fannie Mae or
Freddie Mac, or by an agency of the federal government, Ginnie Mae.
Agency-guaranteed residential mortgage securities carry an implied AAA
credit rating with limited, if any, credit risk. Capstead may also
augment its core portfolio with investments in credit-sensitive
commercial real estate-related assets.

Forward-looking Statements

This document contains "forward-looking statements" (within the
meaning of the Private Securities Litigation Reform Act of 1995) that
inherently involve risks and uncertainties. Capstead'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 other 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
qualifying investments from both an investment return and regulatory
perspective, the availability of new investment capital, 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, liquidity of secondary markets and
credit markets, increases in costs and other general competitive
factors. In addition to the above considerations, actual results and
liquidity related to investments in loans secured by commercial real
estate are affected by borrower performance under operating and/or
development plans, lessee performance under lease agreements, changes
in general as well as local economic conditions and real estate
markets, increases in competition and inflationary pressures, changes
in the tax and regulatory environment including zoning and
environmental laws, uninsured losses or losses in excess of insurance
limits and the availability of adequate insurance coverage at
reasonable costs, among other factors.

Capstead Mortgage Corporation, Dallas
Stockholder Relations, 214-874-2354

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