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CAPSTEAD MORTGAGE CORPORATION ANNOUNCES COMMON DIVIDEND INCREASE AND TERMINATION OF MANAGEMENT AGREEMENT

 DALLAS, Sept. 9 /PRNewswire/ -- Capstead Mortgage Corporation (NYSE: CMO) marked its 11th consecutive common dividend increase with the announcement today that the company will pay third quarter dividends of 92 cents per common share, 40 cents per share on the $1.60 Cumulative Preferred Stock, Series A, and a regular monthly dividend of 10.5 cents per share on the $1.26 Cumulative Convertible Preferred Stock, Series B. Stockholders of record as of Sept. 21 will receive dividend payments on Sept. 30, 1993.
 In commenting on the dividend increase, Ronn K. Lytle, chairman and chief executive officer, said: "The common dividend is 10 percent higher than the third quarter dividend in 1992, and represents an expected increase in operating results as a result of continuing favorable short-term borrowing costs, an increase in earning assets and gains from securitization activities. Purchase volume in the third quarter is expected to approximate $1.2 billion, compared to $952 million in the second quarter of 1993, and $1.2 billion in the third quarter of 1992. Current low interest rates should provide the company an opportunity for continued high levels of purchases in the fourth quarter."
 Lytle went on to announce: "Because of the gains expected to be recognized on securitization activities during the quarter, an amendment negotiated with Lomas Mortgage USA to terminate the management agreement should not disrupt Capstead's trend of continued earnings growth. The amended agreement calls for a Sept. 30, 1993, payment of $4.628 million, which represents a discount of $372,000 to payments aggregating $5.0 million required under the agreement during the remainder of 1993 and 1994. The management agreement will now terminate Sept. 30, 1993, rather than Dec. 31, 1994. We are extremely pleased that Capstead will now be totally self-managed, and that we will be free to pursue a full range of mortgage banking and other financial service opportunities for the benefit of our stockholders."
 Capstead Mortgage Corporation invests in long-term, single-family residential mortgages offering investors the opportunity to participate in the income generated from servicing and investing in mortgage loans, the issuance of collateralized mortgage obligations, and other portfolio strategies.
 -0- 9/9/93
 /CONTACT: Ronn K. Lytle, 214-999-2301, or Andrew F. Jacobs, 214-999-2350, both of Capstead Mortgage Corporation/
 (CMO)


CO: Capstead Mortgage Corporation ST: Texas IN: FIN SU: DIV

TW -- NY062 -- 0369 09/09/93 13:50 EDT
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Publication:PR Newswire
Date:Sep 9, 1993
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