Capital Lease Funding Agrees to Acquire $75.0 Million Tiffany Property

Business Wire, Sept 26, 2005

NEW YORK -- Capital Lease Funding, Inc. (NYSE: LSE) announced today it has signed a definitive agreement to acquire the main operational facility for Tiffany & Co.'s worldwide enterprise from Tiffany for $75.0 million in a sale leaseback transaction. The approximately 368,000 square foot office and warehouse facility is located in Parsippany, New Jersey. CapLease has also agreed to enter into a 20-year triple net lease with Tiffany upon closing of the acquisition. The acquisition is scheduled to close on September 28, 2005, although closing is subject to customary closing conditions and, therefore, the timing and certainty of the acquisition cannot be assured.

Paul McDowell, Chief Executive Officer, stated, "This acquisition represents a significant milestone for us as it puts our net lease portfolio size at over $1.0 billion. This high quality asset is of critical importance to Tiffany and we are honored that they have chosen CapLease as their long-term landlord."

About the Company:

Capital Lease Funding, Inc. (NYSE: LSE) is 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.