IPO News

CHEVY CHASE, Md., Oct. 15 /PRNewswire-FirstCall/ -- CapitalSource Inc. (News) announced today that, due to unprecedented market volatility, it has temporarily delayed its plans to conduct an initial public offering of a minority interest in its wholly owned subsidiary, CapitalSource Healthcare REIT. CapitalSource will continue to own and operate 100% of its healthcare net lease business pending completion of an offering of CapitalSource Healthcare REIT common shares. CapitalSource intends to return to the market with the IPO when appropriate.

A registration statement relating to CapitalSource Healthcare REIT's common shares has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. 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 CapitalSource

CapitalSource Inc. is a commercial lender offering focused lending products serving clients in the middle market. CapitalSource Inc. and its subsidiaries collectively managed total assets of approximately $17.3 billion as of June 30, 2008, including a commercial loan portfolio of $9.4 billion and a healthcare net lease portfolio of $1.0 billion. CapitalSource operates principally through its CapitalSource Bank subsidiary, which had $5.2 billion in deposits and 22 retail banking branches as of July 25, 2008. CapitalSource is headquartered in Chevy Chase, MD. For more information about CapitalSource, visit http://www.capitalsource.com/.