Dynex Capital, Inc. Announces Fourth Quarter Common Stock Dividend

GLEN ALLEN, Va.--(BUSINESS WIRE)--Dynex Capital, Inc. (NYSE: DX) announced today that its Board of Directors has increased the quarterly dividend on its common stock to $0.27 per share for the fourth quarter of 2010. The common stock dividend will be payable on January 31, 2011 to shareholders of record as of December 31, 2010. The Company paid $0.25 per common share in the third quarter of 2010.

Mr. Thomas Akin, Chairman and Chief Executive Officer commented, “We are particularly pleased to announce this increase in the Dynex dividend, the second increase this year. Our portfolio has continued to provide stable cash flow and the investments added this year have been accretive to our book value and earnings. Our dividend increase represents our confidence in our forward cash flow prospects and returns our common stock yield to over 10%. Dynex does not dividend all of its earnings, instead choosing to retain a portion for reinvestment and to grow book value. This dividend increase demonstrates the soundness of that growth strategy, and we look forward to continuing on this path into the future.”

Dynex Capital, Inc. is a real estate investment trust, or REIT, which invests in mortgage assets on a leveraged basis. The Company invests in Agency, and non-Agency RMBS and CMBS. The Company also has investments in securitized single-family residential and commercial mortgage loans originated by the Company from 1992 to 1998. Additional information about Dynex Capital, Inc. is available at www.dynexcapital.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the business of Dynex Capital, Inc. that are not historical facts are "forward-looking statements" that involve risks and uncertainties, including statements regarding future operating performance and future business, investment and capital strategies. For a discussion of these risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.