Capital Lease Funding Announces Joint Venture Investments.

NEW YORK -- Capital Lease Funding, Inc. (NYSE:LSE) announced today that it has agreed to make an equity investment in a newly formed management company organized to form and manage real estate investment funds offered and sold to European investors. The management company, named Matapeake Partners, is being sponsored by an experienced team of international real estate investment managers led by Dan Cummings and Byrne Murphy.

CapLease also expects to source from time to time net lease properties for Matapeake's investment funds, including Matapeake's first investment fund which is estimated to close in the second or third quarter of 2007.

Paul McDowell, CapLease's Chief Executive Officer, stated, "We are excited about this opportunity to partner with Dan and Byrne and their team. We have a high degree of confidence in our new partners and we believe our investment in Matapeake will help drive higher returns on properties we joint venture and provides us with an additional source of capital not dependent on the United States capital markets."

This press release contains statements that are forward-looking. Such forward-looking statements involve risks and uncertainties and actual outcomes may differ materially from those projected. Closings of our investments in Matapeake are subject to various conditions beyond our control and, therefore, CapLease makes no assurance as to the timing or certainty of closing of such transactions. For more information regarding additional risks and uncertainties, review CapLease's filings with the Securities and Exchange Commission.

About the Company:

Capital Lease Funding, Inc. 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.