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                                                                  Exhibit (a)(7)

CONTACT: Stockholder Relations                             FOR IMMEDIATE RELEASE
         214/874-2354


                          CAPSTEAD MORTGAGE CORPORATION
                  COMMENCES $12.75 PER SHARE CASH TENDER OFFER
                 FOR UP TO 5,000,000 SHARES OF ITS COMMON STOCK

         DALLAS - February 16, 2001 - Capstead Mortgage Corporation ("Capstead"
or the "Company") (NYSE: CMO) today announced that it has commenced the tender
offer announced on February 12, 2001 to purchase up to 5,000,000 shares of its
common stock for a cash purchase price of $12.75. The tender offer will only be
made pursuant to offering materials being distributed February 16, 2001 and will
expire on Friday, March 16, 2001 at 12:00 Midnight, New York time, unless
extended. The Company's Board of Directors is not making any recommendation to
the stockholders as to whether or not they should tender any shares pursuant to
the offer. Members of the Board of Directors and Executive Officers, as well as
Fortress Cap LLC, Capstead's principal stockholder, have agreed not
to participate in the tender offer. Merrill Lynch and Co. is acting as Dealer
Manager for the tender offer.

                                    * * * * *

         Capstead Mortgage Corporation, a mortgage investment firm with assets
of over $8 billion, earns income from investing in mortgage assets and other
investment strategies.

         This document contains "forward-looking statements" (within the meaning
of the Private Securities Litigation Reform Act of 1995) that inherently involve
risks and uncertainties. The Company's actual results and liquidity can differ
materially from those anticipated in these forward- looking statements because
of changes in the level and composition of the Company's investments and
unforeseen factors. As discussed in the Company's filings with the Securities
and Exchange Commission, these factors may include, but are not limited to,
changes in general economic conditions, the availability of suitable
investments, fluctuations in and market expectations for fluctuations in
interest rates and levels of mortgage prepayments, deterioration in credit
quality and ratings, the effectiveness of risk management strategies, the impact
of leverage, the liquidity of secondary markets and credit markets, increases in
costs and other general competitive factors.

         THE TENDER OFFER STATEMENT (INCLUDING AN OFFER TO PURCHASE, A RELATED
LETTER OF TRANSMITTAL AND OTHER OFFER DOCUMENTS) WILL CONTAIN IMPORTANT
INFORMATION WHICH SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE WITH
RESPECT TO THE OFFER. The Offer to Purchase, the related Letter of Transmittal
and certain other offer documents will be made available to all stockholders of
Capstead, at no expense to them. The Tender Offer Statement (including the Offer
to Purchase, the related Letter of Transmittal and all other offer documents
filed with the Commission) are also available for free at the Commissions Web
site at www.sec.gov.