CAPSTONE CAPITAL CORPORATION ANNOUNCES SECOND QUARTER AND SIX MONTHS EARNINGS AND FUNDS FROM OPERATIONS Raises Quarterly Dividend By $.02 Per Share.

Birmingham, Alabama--(BUSINESS WIRE)--July 24, 1995--Capstone Capital Corporation (NYSE:CCT) today announced operating results for the three and six months ended June 30, 1995. The Company also announced that its Board of Directors has approved a $.02 per share increase in its quarterly cash dividend to $.445 per share. The dividend is payable on August 15, 1995, to shareholders of record on August 1, 1995.

Revenues for the quarter ended June 30, 1995, totaled $5.9 million. Net income for the period was $2.2 million, or $0.37 per share primary and diluted. Funds from operations for the quarter were $2.9 million, or $0.49 per share primary and $0.45 per share diluted.

For the six months period, revenues totaled $10.8 million. Net income for the period was $4.6 million, or $0.77 per share primary and diluted. Funds from operations for the six months were $5.8 million, or $0.98 per share primary and $0.94 per share diluted.

Comparative results for 1994 are not applicable since the company commenced operations on June 30, 1994.

John W. McRoberts, President and Chief Executive Officer, commented, "We have surpassed the goals we originally set for our first year of operation, which has amplified Capstone's revenues and earnings growth. In addition, we have continued to diversify our investments in terms of facility type, operator base and geographic exposure."

McRoberts continued, "Our ability to capitalize on existing industry opportunities, which resulted in the expansion of the Company's funds from operations, together with our solid backlog of potential investments, has instilled the confidence in our Board to raise our quarterly dividend by 5%, three months earlier than originally projected."

Capstone Capital Corporation is a self-administered real estate investment trust (REIT) which currently owns, leases and provides financing for 36 healthcare related properties located in 13 states that are diversified as to operator, facility type and healthcare industry segment.

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                          Capstone Capital Corporation
                           Financial Highlights(a)
                                (Unaudited)

                                 Three Months     Six Months
                                     Ended          Ended
                                June 30, 1995    June 30, 1995
Revenues:
   Rental income                   $5,476,767     $9,956,871
   Mortgage interest income
    and other income                  439,587        822,462
  Total revenues                    5,916,354     10,779,333
Expenses:
   General and administrative         338,932        635,598
   Depreciation and amortization    1,151,586      2,026,302
   Interest                         2,223,968      3,513,092
  Total expenses                    3,714,486      6,174,992
Net income                         $2,201,868     $4,604,341

Per share amounts (primary):
   Net income                           $0.37          $0.77
   Funds from operation                 $0.49          $0.98
Per share amounts (diluted):
   Net income                           $0.37          $0.77
   Funds from operations                $0.45          $0.94

Weighted Average Shares outstanding:
   Primary                                         5,986,183
   Diluted                                         7,636,945

(a) Financial results for the three and six months period ended June
30, 1994 are not shown because the Company commenced operations on
June 30, 1994.

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CONTACT: Capstone Capital Corporation

Andrew L. Kizer

Chief Financial Officer

205-967-2092

or

Robert Jones/John D. Lovallo

Media Contact:Brian Maddox

Morgen-Walke Associates

212-850-5600