Capstead Mortgage Corporation Declares a $0.26 Per Share Third Quarter 2010 Common Dividend

Capstead Mortgage Corporation (NYSE: CMO) announced today that it will pay a third quarter 2010 dividend of $0.26 per common share on October 20, 2010 to stockholders of record as of September 30, 2010.

About Capstead

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. Agency-guaranteed mortgage pass-through securities carry an implied AAA rating with limited, if any, credit risk.

Cautionary Statement Concerning Forward-looking Statements

This document contains "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe,” "anticipate,” "expect,” "estimate,” "intend,” "project,” "will be,” "will likely continue,” "will likely result,” or words or phrases of similar meaning. These forward-looking statements are based largely on the expectations of management and are subject to a number of risks and uncertainties including, but not limited to, the following:

• changes in general economic conditions;
• fluctuations in interest rates and levels of mortgage prepayments;
• the effectiveness of risk management strategies;
• the impact of differing levels of leverage employed;
• liquidity of secondary markets and credit markets;
• the availability of financing at reasonable levels and terms to support investing on a leveraged basis;
• the availability of new investment capital;
• increases in costs and other general competitive factors;
• deterioration in credit quality and ratings;
• the availability of suitable qualifying investments from both an investment return and regulatory perspective;
• the availability of residential mortgage pass-through securities issued and guaranteed by federal government-sponsored enterprises, currently Fannie Mae or Freddie Mac, or by an agency of the federal government, currently Ginnie Mae; and
• changes in legislation or regulation affecting federal government-sponsored enterprises and similar federal government agencies and related guarantees.

In addition to the above considerations, actual results and liquidity are affected by other risks and uncertainties many of which are set forth in the "Risk Factors” sections contained in the Company’s periodic filings with the SEC, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements. Any forward-looking statements speak only as of the date the statement is made and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. It is not possible to identify all of the risks, uncertainties and other factors that may affect future results. In light of these risks and uncertainties, the forward-looking events and circumstances discussed herein may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, readers of this document are cautioned not to place undue reliance on the forward-looking statements.