The $20,000 and under optional cash investment component of the Dividend Reinvestment and Stock Purchase Plan has been temporarily suspended until further notice

We offer a Dividend Reinvestment and Stock Purchase Plan (the "Plan") to current and prospective investors. Participation in the Plan allows investors to reinvest cash dividends and to purchase additional common stock of CapitalSource Inc., in some cases at a discount from the market price. The Plan is administered by American Stock Transfer & Trust. Currently and until further notice all dividend reinvestments will receive a 2% discount off the market price.

On January 25th, 2008 we adopted changes to the Plan effective February 1, 2008. Please read the letter to shareholders below, which explains these changes:

Letter to Investors dated January 25, 2008

To learn more about the Plan please review the Plan Prospectus and other applicable documents below:

Broker Letter

Plan Prospectus

Letter to Investors

To participate in the Plan please fill out the enrollment form or click here to logon to American Stock Transfer & Trust Company

Application

Waiver Request Form

For further information please contact American Stock Transfer & Trust Company at (866) 673-8057 (toll free) or our Investor Relations Department at (800) 370-9431.

Click Here to receive more information from CapitalSource Inc.