CPP

CapGain Properties Inc. (TSX VENTURE:CPP) is pleased to announce that its
wholly-owned subsidiary, CapGain Holdings Inc. ("CapGain"), has entered into a
Financing Commitment with Statesman Financing Corp. ("Statesman") for a
$1,750,000 loan. The financing is to be secured against properties CapGain
currently owns as well as the to be described interest that the financing will
enable CapGain to acquire. The financing also calls for CapGain Properties Inc.
to issue 500,000 shares at market price to Statesman. The closing of the
financing is subject to acceptance by the TSX Venture Exchange. 


In addition to the above referenced financing arrangement, CapGain has also
entered into an Acquisition Agreement in which it is to acquire a 30%, with an
option to acquire as much as 80%, interest in Orlando MF Partners LLC, which
will purchase the properties located at 1200 West Holden Avenue, Orlando,
Florida and 4855 South Orange Blossom Trail, Orlando, Florida (the "Properties")
for $9,900,000. The Properties are adjacent to one another and are an extended
stay hotel with 140 rooms and an apartment complex with 110 units respectively.
They are being acquired with $5,000,000 cash and $4,900,000 worth of assumed
debt. The Properties are anticipated to be valued at $12,000,000 to $13,000,000,
and accordingly, CapGain's interest is anticipated to be valued at $3,600,000 to
$3,900,000. It is anticipated the Properties will generate $1,700,000 of net
operating income annually, 30% of which CapGain will realize. CapGain has agreed
to pay a total purchase price of $1,500,000, payable in cash, for the 30%
interest in Orlando MF Partners LLC. 


Dollar amounts referenced in association with the financing are in Canadian
currency and dollar amounts referenced in association with the acquisition or
purchase are in United States currency.


About CapGain

CapGain is an investment company that purchases, re-structures when applicable,
and sells real property in the United States, with a forward moving focus on
income producing real estate. CapGain's contacts within the real estate and
finance industries allow the purchase of properties significantly below market
value. 


Additional information on the operations or financial results of CapGain is
included in reports on file with applicable securities regulatory authorities
and may be accessed through the TMX website (www.tmx.com) and the SEDAR website
(www.sedar.com) under the profile for CapGain.


Forward-Looking Statements 

This press release may contain forward-looking statements within the meaning of
applicable legislation. All statements included in this report and the documents
that we incorporate by reference, are forward-looking statements and can
generally be identified by words such as "will," "allow," "outlook," or the
negative of these terms, and other comparable terminology. 


Various risks and other factors could cause actual results, and actual events
that occur, to differ materially from those contemplated by the forward looking
statements, such as whether CapGain is able to meet price, performance, quality
and delivery requirements. Although CapGain believes that the expectations
represented by any forward-looking statements and forward-looking information
contained herein are reasonable based on the information available to them on
the date of this document, management cannot assure investors that actual
results, performance or achievements will be consistent with these
forward-looking statements or forward-looking information. CapGain undertakes no
obligation to update the information in this press release to reflect events or
circumstances after the date hereof or to reflect the occurrence of anticipated
or unanticipated events.


FOR FURTHER INFORMATION PLEASE CONTACT: 
CapGain Properties Inc.
Brian Knight
Chief Executive Officer
(847) 854-4213
bknight@capgain.ca

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