Capital Lease Funding Acquires Approximately $98 Million of Net Lease Properties in Two Sale Leaseback Transactions

Business Wire, Dec 22, 2005

NEW YORK -- Capital Lease Funding, Inc. (NYSE: LSE) announced today the acquisition and related financing of approximately $98 million of net leased real estate properties in two separate sale/leaseback transactions, including the acquisition of three properties net leased to Allstate Insurance Company (currently rated AA/Aa2 by S&P/Moody's) for an aggregate purchase price of $59 million, and the acquisition of one property net leased to Farmers New World Life Insurance Company for a purchase price of $39.55 million. The Allstate properties include approximately 377,000 square feet of space in Charlotte, North Carolina, Roanoke, Virginia and Pittsburgh, Pennsylvania. Upon closing of the acquisition, we entered into a 10 year net lease of each of the properties with Allstate. E[acute accent]The Farmers property is the headquarters for Farmers New World Life Insurance Company, the primary life insurance subsidiary of Farmers Group, Inc. (currently rated A by S&P). Farmers and Farmers Group are subsidiaries of Zurich Financial Services Group. The approximately 155,000 square foot office property is located in Mercer Island, Washington. We entered into a 15 year net lease with Farmers upon closing of our acquisition. E[acute accent]Paul McDowell, Chief Executive Officer, stated, "We are very pleased to close out our portfolio investment activity for 2005 with these strong assets backed by high credit quality tenants. With these assets, our portfolio is now at approximately $1.2 billion and we look forward to continuing to build our portfolio with high credit quality, long-term assets in 2006."

E[acute accent]About the Company:

E[acute accent]Capital Lease Funding, Inc. (NYSE: LSE) is a real estate investment trust, or REIT, focused on financing and owning commercial real estate that is net leased primarily to single tenants with investment grade or near investment grade credit ratings.