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EAST PROVIDENCE, R.I., March 17 /PRNewswire-FirstCall/ -- Today, Capital Properties, Inc. (AMEX:CPI) reported net income of $1,663,000 for the year ended December 31, 2005, resulting in a basic income per common share of $.50. For the year ended December 31, 2004, the Company had reported net income of $1,561,000, or $.47 per share. In March 2005, the Company sold the parking garage located in the Capital Center area in Providence which it had owned since the 1980's for $2,500,000 in cash, resulting in a gain of $1,057,000. The Company retained ownership of the underlying land which is leased for 99 years. In July 2005, the Company sold a billboard permit for $100,000. In March 2004, the Company received $258,000 from the City of Providence for reimbursement of attorneys fees incurred by the Company in its litigation against the City with respect to the City's attempt to assess back taxes against the Company. Exclusive of the $1,057,000 gain on the sale of the parking garage and the $100,000 gain from the sale of the billboard permit received in 2005 and the $258,000 received for the attorneys fees in 2004, revenues and other income from leasing for 2005 decreased $386,000 from 2004. Prior to the commencement of the long-term land leases in 2004 and 2005, the Company was receiving option payments and revenue from a short-term surface parking lease but was paying all real property taxes. Upon commencement of the leases, the Company receives an annual rental which is lower during the construction and lease-up periods (approximately five years) but the tenant directly pays the real property taxes, resulting in a decrease in real property tax expense for 2005 of $752,000 from 2004. The net effect of these changes is the principal reason for the increase in income before income taxes of the leasing segment for the year ended December 31, 2005. Revenue from petroleum storage facility for 2005 increased $475,000 from 2004 due principally to fees for the new 152,000 barrel tank effective October 2004 and higher monthly fees resulting from the annual cost-of-living adjustment. In 2004, the Company recorded $200,000 of remediation costs associated with a 1994 leak at the petroleum storage facility. No additional remediation costs were recorded in 2005 and legal fees were lower in connection with the Wilkesbarre Pier litigation. These decreases were offset by higher depreciation expense related principally to the tank constructed in 2004 and higher payroll and related costs, resulting in an overall decrease in expenses applicable to petroleum storage facility of $163,000 in 2005 from 2004. In February 2004, the Company received $1,622,000 from National Railroad Passenger Corporation (Amtrak) for the condemnation of its properties in Providence, Rhode Island in 1999 and 2001. In September 2004, the Company received an additional $50,000 from Amtrak for a 2004 condemnation. General and administrative expenses increased $178,000 from 2004 due to the following: (1) pro-fessional fees incurred in an assessment of the Company's insurance needs; (2) higher payroll and related costs; (3) higher director fees; (4) costs associated with the conversion of the Company's Class B common stock to Class A common stock; and (5) expenses associated with responding to a tender offer to acquire up to 285,000 shares of Company's stock which commenced May 2, 2005, and ended June 13, 2005, at which time the tender offeror acquired 9,675 shares of the Company's Class A common stock. Interest income for 2005 increased $72,000 from 2004 resulting from higher levels of cash available for short-term investments. Financial Summary Years Ended December 31, 2005 and 2004 2005 2004 Revenues and other income: Revenues: Leasing $2,663,000 $3,049,000 Petroleum storage facility 2,549,000 2,074,000 5,212,000 5,123,000 Other income: Gain on sale of parking garage 1,057,000 -- Gain on sale of billboard permit 100,000 -- Attorneys fees judgment -- 258,000 Condemnation proceeds, including interest of $244,000 -- 1,672,000 Interest 94,000 22,000 Total revenues and other income $6,463,000 $7,075,000 Total expenses $3,707,000 $4,504,000 Income before income taxes $2,756,000 $2,571,000 Net income $1,663,000 $1,561,000 Basic income per share $ .50 $ .47 Capital Properties, Inc.'s business consists of the leasing of certain of its real estate interests in downtown Providence, Rhode Island for commercial development and locations along interstate and primary highways in Rhode Island and Massachusetts for outdoor advertising purposes, and the operation of its petroleum storage facility in East 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-KSB and 10-QSB. 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 DATASOURCE: Capital Properties, Inc. CONTACT: Barbara J. Dreyer, Treasurer of Capital Properties, Inc. +1-401-435-7171

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