Capital Lease Prices Preferred Stock Offering.

NEW YORK -- Capital Lease Funding, Inc. (NYSE: LSE) announced today that it has priced a public offering of 1,400,000 shares of 8.125% Series A Cumulative Redeemable Preferred Stock at a price to the public of $25.00 per share. The transaction is expected to close on October 19, 2005. CapLease

The managing underwriters of the offering are Wachovia Securities as sole bookrunning and joint-lead manager, Friedman Billings Ramsey as joint lead manager, and A.G. Edwards and RBC Capital Markets as co-managers. A copy of the prospectus supplement relating to the shares may be obtained from Wachovia Securities, Attention: Prospectus Department, One Wachovia Center, 301 South College Street, Charlotte, North Carolina 28288.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About the Company:

Capital Lease Funding, Inc. is a 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.