CapLease, Inc. (NYSE: LSE) announced today that it has priced an underwritten public offering of 850,000 shares of its new 7.25% Series C Cumulative Redeemable Preferred Stock, at a public offering price of $23.75 per share, for gross proceeds of approximately $20 million. The offering, which was significantly oversubscribed, is expected to close on January 25, 2013, subject to customary closing conditions.

CapLease has filed an application to list the Series C Preferred Stock on the New York Stock Exchange under the symbol “LSEPrC.” If that application is approved, trading of the Series C Preferred Stock on the New York Stock Exchange is expected to begin within 30 days after the date of initial issuance of the Series C Preferred Stock.

CapLease intends to use the net proceeds from the offering for general corporate purposes, which are expected to primarily include repurchase or redemption of its issued and outstanding 8.125% Series A Preferred Stock.

The shares will be issued pursuant to a registration statement that has been declared effective by the Securities and Exchange Commission. A prospectus supplement and accompanying prospectus relating to the offering have been filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares, nor shall there be any sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

MLV & Co. LLC is acting as sole book-runner for the offering, and JMP Securities LLC is acting as lead manager for the offering.

The offering may be made only by means of a prospectus supplement and the accompanying prospectus. You may request copies of these documents by contacting MLV & Co. LLC, 1251 Avenue of the Americas, New York, NY 10020, Attn: Randy Billhardt, via email at and via telephone at (212) 542-5882.

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. Factors that could cause actual results to differ materially from CapLease’s expectations include, but are not limited to, changes in capital markets and economic conditions, completion of the offering on the terms described in the registration statement, the prospectus supplement relating to the offering and the accompanying prospectus, and use of proceeds from the sale of the Series C Preferred Stock. For more information regarding these and other risks and uncertainties, review CapLease’s Annual Report on Form 10-K for the year ended December 31, 2011 and its other filings with the Securities and Exchange Commission.

About the Company:

CapLease, Inc. is a real estate investment trust, or REIT, that primarily owns and manages a diversified portfolio of single tenant commercial real estate properties subject to long-term leases to high credit quality tenants.

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