Capital Properties, Inc. Announces First Quarter 2008 Results

For the three months ended March 31, 2008, leasing revenue increased $56,000 from 2007 principally due to rent increases under short-term leases, including rentals from the Steeple Street Building purchased in November 2007. For the three months ended March 31, 2008, leasing expense increased $52,000 from 2007, principally due to higher real property taxes and expenses associated with the Steeple Street Building.

For the three months ended March 31, 2008, petroleum storage facility revenue decreased $24,000 from 2006, due principally to lower contingent revenue as a result of lower throughput, offset in part by higher monthly rent resulting from the annual cost-of-living adjustment May 1, 2007 and a $25,000 payment by the tenant for the increase in property taxes as required by the lease. For the three months ended March 31, 2008, petroleum storage facility expense decreased $40,000 from 2007, due principally to lower legal and professional engineering fees offset in part by higher payroll and related costs resulting from the hiring of a new employee and an increase in real estate taxes, which increase was reimbursed by the tenant.

For the three months ended March 31, 2008, general and administrative expense decreased $44,000 from 2007 due principally to a decrease in payroll and related costs due to the non-replacement of a retired employee offset in part by higher professional fees incurred in complying with Section 404(a) of the Sarbanes-Oxley Act of 2002.

For the three months ended March 31, 2008, interest income decreased $24,000 due to lower levels of cash available for investment resulting in part from the purchase of the Steeple Street Building and lower interest rates.

                              Financial Summary
                  Three Months Ended March 31, 2008 and 2007

                                                  2008         2007
    Revenues and other income:
      Revenues:
        Leasing                                 $715,000     $659,000
        Petroleum storage facility               951,000      975,000
                                               1,666,000    1,634,000
      Other income, interest                       7,000       31,000
          Total revenues and other income      1,673,000    1,665,000

    Expenses:
      Leasing                                    190,000      138,000
      Petroleum storage facility                 515,000      555,000
      General and administrative                 291,000      335,000
          Total expenses                         996,000    1,028,000

    Income before income taxes                  $677,000     $637,000

    Net income                                  $404,000     $380,000

    Basic income per share                          $.12         $.12

Capital Properties, Inc. and its subsidiaries operate in two segments: (1) Leasing and (2) Petroleum Storage. The leasing segment consists of the long-term leasing of certain of its real estate interests in downtown Providence, Rhode Island for commercial development, the leasing of a portion of the Steeple Street Building acquired in November 2007 and the leasing of locations along interstate and primary highways inRhode Island and Massachusetts for outdoor advertising purposes. The petroleum storage segment consists of the operating of its petroleum storage facility inEast Providence, Rhode Island.

Certain written statements made in this press release may contain "forward-looking statements" which represent the Company's expectations or beliefs concerning future events. Certain risks, uncertainties and other important factors are detailed in reports filed by the Company with the Securities and Exchange Commission, including Forms 8-K, 10-K and 10-Q. The Company cautions that these statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements.

CONTACT:

Barbara J. Dreyer, Treasurer

(401) 435-7171

SOURCE Capital Properties, Inc.

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