Capital Lease Funding Announces Distribution of Shares by Hyperion Partners.

NEW YORK -- Capital Lease Funding, Inc. (NYSE: LSE) announced today that it has been advised that Hyperion Partners II L.P. ("HP") has distributed in kind to its partners the remaining shares of common stock owned by HP (1,000,000 shares owned through HP's wholly-owned subsidiary, Hyperion CLF LLC). HP, an investment partnership managed by Lewis Ranieri, CapLease's Chairman of the Board, is in the process of liquidating and the distribution was made as part of HP's normal wind-up and dissolution activities. These shares were distributed to a total of 31 different recipients.

Mr. Ranieri received 24,139 shares in the distribution. Other than Mr. Ranieri, who has advised CapLease that he has no current plans to sell his shares, CapLease has no knowledge whether any of the recipients will determine to sell their shares now or in the future.

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.