Q1 2016 INVESTOR FACT SHEET  ABOUT US  Capstead is based in Dallas, Texas and is listed on the New YorkStock Exchange (symbol CMO and CMOPRE). Having been formedin 1985, we hold the distncton of being the oldest publicly-tradedmortgage REIT.  We invest in a leveraged portolio of short-duraton agency-guaranteed (i.e. Fannie Mae, Freddie Mac and Ginnie Mae)  residental ARM securites that is appropriately hedged and canearn atractve risk-adjusted returns over the long term, with litle,  if any, credit risk. Duraton is a measure of market price sensitvity tointerest rate movements. A shorter duraton generally indicates lessinterest rate risk.  Our short-duraton strategy differentates us from our peersbecause the adjustable-rate mortgages underlying our portolioreset to more current interest rates within a relatvely short periodof tme positoning us:  ``to benefit from future recoveries in financing spreads that typically contract during periods of rising interest rates, and``to experience smaller fluctuatons in portolio values from  changes in interest rates compared to portolios containinga significant amount of longer-duraton ARM or fixed-ratemortgage securites.  QUALITY ASSETS  Agency-guaranteed residental mortgage securites are consideredto have litle, if any, credit risk, partcularly given federal governmentsupport for Fannie Mae and Freddie Mac. These mortgage  investments are highly liquid and can be financed with multplefunding providers through standard repurchase arrangements.  CONSERVATIVELY FINANCED  We leverage our portolio to provide the financial flexibility neededto successfully manage through periods of changing market  conditons, and we have long-standing relatonships with numerouslending counterpartes. Our use of interest rate swap agreementshelps further mitgate the effects of rising short-term interest rates.  EXPERIENCED MANAGEMENT  IN A STOCKHOLDER FRIENDLY STRUCTURE  Our top four executve officers have over 100 years of combinedmortgage finance industry experience. We are internally-managedwith low operatng costs and a strong focus on performance-basedcompensaton. This structure greatly enhances the alignment of  management interests with those of our stockholders.  Long-term Investment Capital  (in millions)  Long-term Unsecured BorrowingsPreferred Stock  Portolio Leverage*  $12.62 $1.38  Total Assets  (in millions)  $14,387 $14,446  Common Stock  $1,595  $1,464 $1,489  $1,396 $1,381  $98  $197  Billion  Billion $14,467 $14,014 $14,110  9.14:1  Portolio Leverage  Secured Borrowingsdivided by Long-Term  $1,086  2012 2013 2014 2015 2016*  *As of March 31, 2016  Capstead Mortgage Corporatonwww.capstead.com / NYSE:CMO  Investment Capital  2012 2013 2014 2015 2016*  8401 North Central Expressway / Suite 800 / Dallas, TX 75225-4404 800.358.2323 / invrel@capstead.com 

 Q1 2016 INVESTOR FACT SHEET  FIRST QUARTER HIGHLIGHTS  ``  Generated earnings of $27.4 million or $0.25 per diluted  ``  Financing spreads on residental mortgage investments  common share  unchanged at 0.90%  ``  Paid common dividend of $0.26 per common share  ``  Agency-guaranteed ARM portolio and leverage ended the  ``  Book value decreased 1.5%, or $0.17, to $11.25 per  quarter at $13.84 billion and 9.14 tmes long-term investment  common share  capital, respectvely  QUARTERLY RESULTS  March  December  September  June  March  (In thousands, except per share data)  2016  2015  2015  2015  2015  Interest income  $59,692  $57,578  $49,573  $50,440  $58,739  Interest expense  (28,559)  (26,024)  (24,394)  (22,220)  (21,337)  Net interest margin  31,133  31,554  25,179  28,220  37,402  Salaries and benefits  (1,157)  (1,136)  (1,104)  (1,103)  (1,049)  Short-term incentve compensaton  (1,422)  (1,166)  (1,424)  (830)  (692)  Long-term incentve compensaton  (645)  (325)  (536)  (227)  (608)  Other general and administratve expense  (1,169)  (1,170)  (1,309)  (1,170)  (1,149)  Miscellaneous other revenue (expense)  613  600  261  54  53  (3,780)  (3,197)  (4,112)  (3,276)  (3,445)  Net income  $27,353  $28,357  $21,067  $24,944  $33,957  Net income per diluted common share  0.25  0.26  0.18  0.22  0.32  Dividend per common share  0.26  0.26  0.26  0.31  0.31  Common shares outstanding (EOQ)  95,947  95,825  95,825  95,790  95,812  Analysts  Common Stock Informaton  Average Financing Spreads  Firm  Ratng (a)  NYSE Ticker:  CMO  on Residental Mortgage  ``Deutsche Bank Hold  ``JMP Securites LLC Market Perform  ``KBW Market Perform  ``Wells Fargo Market Perform  Ownership % of Shares  Insttuton Outstanding (b)  ``BlackRock Fund Advisors 10.44  ``The Vanguard Group, Inc. 7.41  ``Thornburg Investment Management, Inc. 4.83  ``J.P. Morgan Investment Management, Inc. 4.00  ``Paradice Investment Management Pty., LTD 3.37  ``Northern Trust Investments, Inc. 2.82  ``State Street Global Advisors (SSgA) 2.44  ``Jennison Associates, LLC 2.29  ``WEDGE Capital Management, LLP 1.85  ``American Century Investment Management, Inc. 1.65  (a) As of May 2, 2016.  Price as of 5/2/2016: $9.62  52 week High/Low: $11.97- $7.48  1Q Dividend: $0.26  Dividend Yield (annualized): 10.8%  1Q Avg Daily Vol: 1,001,922 shares  Series E Preferred Stock Informaton  NYSE Ticker: CMO-PRE  Price as of 5/2/2016: $24.30  Redempton Preference: $25.00  Liquidaton Preference: $25.00  Annualized Dividend: $1.875  Dividend Yield: 7.7%  Contnuous Offering Program  When conditons warrant, we make use of at-the-market, contnuous offering programs to raise  additonal common and preferred equity capital.  Common Stock Repurchase Program  On January 27, 2016 Capstead’s Board authorizedthe repurchase of up to $100 million in commonstock when such repurchases are deemed  appropriate relatve to portolio reinvestmentoptons and liquidity needs.  Investments  (in basis points)  138  117  107  89 90  FY12 FY13 FY14 FY15 FY16*  *As of March 31, 2016  (b) Based on available findings as of May 2, 2016 and shares outstanding as of December 31, 2015.  Capstead Mortgage Corporaton  8401 North Central Expressway / Suite 800 / Dallas, TX 75225-4404  www.capstead.com / NYSE:CMO  800.358.2323 / invrel@capstead.com