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Press release from PR Newswire

CapitalSource Acquires SBA Lender

Monday, April 19, 2010

CapitalSource Acquires SBA Lender08:00 EDT Monday, April 19, 2010- SBA Loan Portfolio and Operating Platform Purchased - Experienced Management Team Joining CapitalSourceCHEVY CHASE, Md., April 19 /PRNewswire-FirstCall/ -- CapitalSource Inc. (NYSE: CSE) today announced that it has acquired substantially all of the assets of SBA lender MainStreet Lender LLC ("MainStreet") for a total purchase price of $100 million. �The asset purchase includes the acquisition by CapitalSource Bank of a $111 million portfolio of small balance SBA and conventional loans, and the acquisition by the Parent Company of a non-bank SBA license, servicing rights associated with the bank-acquired portfolio and intellectual property. Additionally, MainStreet origination, underwriting and servicing personnel will join CapitalSource to manage and grow the SBA portfolio. �"This acquisition is consistent with our articulated strategy of building our franchise with asset origination platforms that focus on commercial lending, which we view of particular value as the banking industry will likely face a significant asset gap across the next several years," said John K. Delaney, CapitalSource Executive Chairman. �"We are very pleased to add the experienced SBA lending professionals from MainStreet to our national origination team," remarked James J. Pieczynski, CapitalSource Co-CEO. �"Recent SBA program enhancements are expected to result in substantial additional activity in coming months, so we see this as a growth opportunity for CapitalSource as well as a chance to support the nation's small and mid-size businesses which are the principal drivers of the U.S. economy." � "We are enthusiastic about the opportunities presented by adding our established SBA platform to the CapitalSource national lending franchise," said George Harrop who will be joining CapitalSource to lead the SBA lending team. �"The talented professionals who will be coming with me to CapitalSource have worked together for many years. We will be able to immediately begin making new loans, since all necessary regulatory approvals have been obtained."About CapitalSourceCapitalSource Inc. (NYSE: CSE) is a commercial lender that provides financial products to middle market businesses and offers depository products and services in southern and central California through its wholly owned subsidiary CapitalSource Bank. As of December 31, 2009, CapitalSource had total commercial assets of $9.2 billion and $4.5 billion in deposits. The Company is headquartered in Chevy Chase, MD. Visit www.capitalsource.com �for more information.Forward Looking Statements This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections and including statements about growing our business and our assets, increased loan production levels, expanding loan product lines, and the impact of the U.S. economy on our business, all of which are subject to numerous assumptions, risks, and uncertainties. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "assume," "intend," "believe," "expect," "estimate," "plan," "goal," "will," " outlook," "continue," "look forward," "should," and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. Actual results could differ materially from those contained or implied by such statements for a variety of factors, including without limitation, factors described in CapitalSource's 2009 Annual Report on Form 10-K and documents subsequently filed by CapitalSource with the Securities and Exchange Commission. All forward-looking statements included in this news release are based on information available at the time of the release. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.SOURCE CapitalSource Inc.For further information: Investor Relations: Dennis Oakes, Senior Vice President - Investor Relations, +1-212-321-7212; Media Relations: Michael E. Weiss, Director of Communications, +1-301-841-2918