CapitalSource Announces Termination of TierOne Agreement

CHEVY CHASE, Md., March 20 /PRNewswire-FirstCall/ -- CapitalSource, Inc. today announced that it has terminated its Merger Agreement with TierOne Bank, under the terms of the Agreement between the parties.

About CapitalSource

CapitalSource (NYSE:CSE) is a leading commercial lending, investment and asset management business focused on the middle market. CapitalSource manages an asset portfolio which as of December 31, 2007 was approximately $20.9 billion. Headquartered in Chevy Chase, Maryland, the Company had approximately 560 employees as of December 31, 2007 in offices across the U.S. and in Europe. For more information, visit http://www.capitalsource.com/.

First Call Analyst:
FCMN Contact:

Source: CapitalSource, Inc.

CONTACT: Investor Relations, Dennis Oakes, Vice President - Investor
Relations, +1-212-321-7212, doakes@capitalsource.com, or Media Relations,
Michael Weiss, Director of Communications, +1-301-841-2918,
mweiss@capitalsource.com, both of CapitalSource, Inc.

Web site: http://www.capitalsource.com/

2008-03-20 16:21:44 0317620 PRNEWSWIRE