Capital Lease Announces Exercise of Over-Allotment Option.

NEW YORK -- Capital Lease Funding, Inc. (NYSE: LSE) announced today that the underwriters of its recent common stock offering have exercised their over-allotment option for a total of 1,350,000 shares. Including the over-allotment purchases made today, the Company's common stock offering totaled 10,350,000 shares of common stock at a price to the public of $10.75 per share, resulting in net proceeds to the Company, after the underwriting discount and estimated offering expenses, of $105.8 million.

Wachovia Securities and Citi are the joint book-running managers of the offering. Friedman Billings Ramsey, KeyBanc Capital Markets, Stifel Nicolaus and Keefe, Bruyette & Woods are the co-managers for the offering. A copy of the prospectus supplement and prospectus relating to the offering may be obtained from Wachovia Securities, 375 Park Avenue, 4th Floor, New York, NY 10152, Attention: Equity Syndicate Department (Telephone number [phone] or [e-mail]); and from Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220 (Telephone number [phone]).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

About the Company:

Capital Lease Funding, Inc. is a real estate investment trust, or REIT, that invests primarily in single tenant commercial real estate assets subject to long-term leases to high credit quality tenants.