News Release

Capstone Infrastructure Declares Dividend on Preferred Shares

TORONTO, ONTARIO (January 3, 2012) – Capstone Infrastructure Corporation (TSX: CSE; CSE.DB.A; CSE.PR.A – the “Corporation”) today declared a dividend on its Cumulative 5-Year Rate Reset Preferred Shares, Series A (the “Preferred Shares”) of $0.3125 per Preferred Share to be paid on January 31, 2012 to shareholders of record at the close of trading on January 13, 2012.  This dividend on the Preferred Shares covers the period from November 1, 2011 to January 31, 2012.

The dividends paid by the Corporation on its Preferred Shares are designated “eligible” dividends for purposes of the Income Tax Act (Canada).  An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.

About Capstone Infrastructure Corporation

Capstone Infrastructure Corporation’s mission is to build and responsibly manage a high quality portfolio of infrastructure businesses in Canada and internationally in order to deliver a superior total return to shareholders through a combination of stable dividends and capital appreciation.  The Corporation’s portfolio currently includes investments in gas cogeneration, wind, hydro, biomass and solar power generating facilities, representing approximately 370 MW of installed capacity, a 33.3% interest in a district heating business in Sweden, and a 70% interest in a regulated water utility in the United Kingdom.  Please visit www.capstoneinfrastructure.com for more information.