Capital Lease Funding Closes Acquisition of $90.1 Million TJX Companies Property; Announces First Quarter Dividends

Business Wire, March 15, 2006

NEW YORK -- Capital Lease Funding, Inc. (NYSE: LSE) announced today the closing of a $90.1 million acquisition of an approximately one million square foot warehouse and distribution facility in Philadelphia, Pennsylvania, net leased to a subsidiary of TJX Companies, Inc. through June 2021. TJX Companies, Inc. has guaranteed the tenant's lease obligations and is rated A/A3 by S&P/Moody's. The facility, which was completed in 2001, is a strategically important one to TJX Companies, Inc. as it serves as the sole tri-state distribution facility for its Marshalls stores. CapLease financed the acquisition at closing with a $71.7 million 10-year mortgage note to Wachovia Bank at a 5.57% coupon rate.

Paul McDowell, Chief Executive Officer, stated, "The TJX property reflects well on our acquisition strategy, as the property is subject to a long-term lease to an A rated company, it is located in a primary market where vacancy rates are low and is a strategically important facility to our tenant. We look forward to continuing to build our owned property portfolio with high credit quality, long-term assets with strong real estate fundamentals."

CapLease also announced today that its Board of Directors has declared a cash dividend of $0.20 per share of common stock, and a cash dividend of $0.5078125 per share of 8.125% Series A Cumulative Redeemable Preferred Stock (NYSE: LSEPrA), for the first quarter of 2006.

Both the common and the preferred dividends are payable on April 17, 2006 to shareholders of record as of March 31, 2006.

About the Company:

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