Capstead Mortgage Corporation : Declares January Dividend on Its $1.26 Cumulative Convertible Preferred Stock, Series B

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CAPSTEAD MORTGAGE CORPORATION DECLARES JANUARY DIVIDEND ON ITS $1.26 CUMULATIVE CONVERTIBLE PREFERRED STOCK, SERIES B

DALLAS - January 5, 2012 - The Board of Directors of Capstead Mortgage Corporation (NYSE: CMO) announced today it will pay a regular monthly dividend of $0.105 per share on the $1.26 Cumulative Convertible Preferred Stock, Series B (NYSE: CMOPRB). The dividend is payable on January 31 to stockholders of record as of January 19, 2012.
Effective September 30, 2011, each Series B Preferred share is convertible into 0.6392 shares of common stock. Effective October 1, 2011, each Series A Preferred share is convertible into
1.6545 shares of common stock. Holders of the Series A and B preferred shares may convert into shares of the Company's common stock at any time; however, currently it may not be economically advantageous to do so. Any conversion requested after one or more preferred record dates within the quarter and on or before the record date for the quarterly common stock dividend will require payment to the Company of all preferred share dividends declared and paid for the corresponding quarter.
Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. Capstead earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage ("ARM") securities issued and guaranteed by government-sponsored enterprises, either Fannie Mae or Freddie Mac or by an agency of the federal government, Ginnie Mae.
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