X0202 4 2008-05-27 1 0001241199 CAPITALSOURCE INC CSE 0001250078 SCHRIER DEREK C C/O FARALLON CAPITAL MANAGEMENT, L.L.C. ONE MARITIME PLAZA, SUITE 2100 SAN FRANCISCO CA 94111 0 0 1 1 Member of Group Owning 10% Common stock, par value $0.01 per share 0 I See Footnotes Derek C. Schrier previously filed a Form 3 and Form 4s with respect to securities of the Issuer owned directly by Farallon Capital Partners, L.P., RR Capital Partners, L.P., Farallon Capital Institutional Partners, L.P., Farallon Capital Institutional Partners II, L.P., Farallon Capital Institutional Partners III, L.P., Tinicum Partners, L.P. and Farallon Capital Offshore Investors II, L.P. (collectively, the "Partnerships"), by Farallon CS Institutional Finance II, L.P. ("FCSLP") and by a discretionary account managed by Farallon Capital Management, L.L.C. ("FCMLLC"). Since the filing of the last Form 4, certain of such entities acquired in total 2,965,056 shares of common stock pursuant to the Issuer's Q4 2007 and Q1 2008 Dividend Reinvestment and Stock Purchase Plan (together the "DRIP Shares"). At the time of their receipt, Mr. Schrier may have been deemed to have beneficial ownership of such shares. Mr. Schrier was a managing member of Farallon Partners, L.L.C. ("FPLLC"), the general partner of the Partnerships, and FCMLLC, the manager of the general partner of FCSLP, with the power to exercise investment discretion. As such, Mr. Schrier may have been deemed the beneficial owner of the Issuer's securities beneficially owned by FPLLC and FCMLLC. As of May 27, 2008, Mr. Schrier had resigned as a managing member of FPLLC and FCMLLC and no longer had investment discretion. As such, he may no longer be deemed a beneficial owner of any of the Issuer's securities beneficially owned by FPLLC and FCMLLC. Mr. Schrier, FCMLLC and the individuals identified in the prior Form 3s and Form 4s filed by the foregoing entities disclaim any beneficial ownership of any of the Issuer's securities reported or referred to herein or therein (including the DRIP Shares) for purposes of Section 16 under the Securities Exchange Act of 1934, as amended (the "'34 Act"). FPLLC disclaims any beneficial ownership of any of the Issuer's securities reported or referred to herein or in such prior Form 3s and Form 4s for purposes of Section 16 under the '34 Act, or otherwise, except as to securities representing FPLLC's pro rata interest in, and interest in the profits of, the Partnerships. /s/ Monica R. Landry, as attorney-in-fact 2008-05-29