FOR IMMEDIATE RELEASE

Contact:     Ashley B. Bloom
             Capitol First Corporation
             (561) 417-7115


                CAPITOL FIRST SIGNS PROJECT DEVELOPMENT AGREEMENT
                   FOR 250-ACRE TRACT A IN MAUMELLE, ARKANSAS
                            SITE DEVELOPMENT PLANNED


Boca Raton, Florida - October 26, 2004 - Capitol First Corporation (OTC Bulletin
Board: CFRC) today  reported  that it  has entered  into a Property  Development
Agreement  with The  Hathaway  Group,  based in Little  Rock  Arkansas,  for the
preliminary  development  of a 250 acre tract,  known as Tract A, located in the
master  planned  community  of  Maumelle,   Arkansas  and  currently  zoned  for
residential, multifamily and commercial use.

Acting as an owner's representative for Capitol Development of Arkansas, Inc., a
wholly owned subsidiary of Capitol First Corporation, The Hathaway Group will be
responsible  for  day-to-day  coordination  and  project  management,  including
preparation  of a site plan that will be  submitted  for approval to the City of
Maumelle.  Should  Capitol  decide to develop the site,  The Hathaway Group will
coordinate  and manage  site  development  activities  such as  construction  of
on-site  streets,  utility line extensions and boundary  street  improvements to
create lots for sale to residential or commercial developers.

Founded  in 1976,  The  Hathaway  Group  assists  companies,  professionals  and
individuals  with a wide  range  of  real  estate  related  services,  including
property  management,  development  and  consulting,  as  well  as  real  estate
brokerage.

"We are very  pleased  to  work with Jim Hathaway  and his team at  The Hathaway
Group  as we  believe  they  possess  the  necessary  experience,  contacts  and
reputation  in the  Maumelle  area to assess and  analyze  the site  development
options for Tract A," said  Ashley  Bloom,  Acting  President  of Capitol  First
Corporation.  "We expect  their  project  management  expertise  will help us to
enhance the development  opportunities  of this property,  which  represents our
core holding in the Maumelle area."


ABOUT CAPITOL FIRST
- -------------------
Capitol First Corporation is a real estate  development and finance company that
along  with  its  wholly  owned  subsidiaries,  currently  has  residential  and
commercial land holdings in the master planned community of Maumelle,  Arkansas,
residential homesites in Lehigh Acres,  Florida;  equity interests in properties
located in Lake Toxaway,  North Carolina and Lighthouse Point,  Florida, as well
as participation in the funding of numerous development/construction loans.  The
Company is currently  seeking to further expand its transaction  base,  focusing
primarily on real estate,  collateralized financial lending and related business
opportunities in high-growth markets.


This press release contains forward-looking  statements,  which involve numerous
risks and  uncertainties.  Actual  results,  performance or  achievements  could
differ materially from those anticipated in such forward-looking statements as a
result of certain  factors,  including those set forth in the Company's  filings
with the Securities and Exchange Commission.