Capstead Mortgage Corporation Declares a $0.41 Per Share First Quarter 2011 Common Dividend

Capstead Mortgage Corporation (NYSE: CMO) announced today that it will pay a first quarter 2011 dividend of $0.41 per common share on April 20, 2011 to stockholders of record as of March 31, 2011.

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;
• the availability of suitable qualifying investments from both an investment return and regulatory perspective;
• changes in legislation or regulation affecting the GSEs and similar federal government agencies and related guarantees; and
• deterioration in credit quality and ratings of existing or future issuances of GSE or Ginnie Mae Securities.

In addition to the above considerations, actual results and liquidity are affected by other risks and uncertainties which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements. 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. 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. Accordingly, readers of this document are cautioned not to place undue reliance on the forward-looking statements.