Dynex Capital, Inc. Announces Schedule for First Quarter 2011 Results and New DRIP Plan and Updates Market on Litigation

GLEN ALLEN, Va.--(BUSINESS WIRE)--Dynex Capital, Inc. (NYSE: DX) announced today that it will release its first quarter 2011 results after the market closes on Thursday, May 5, 2011 and will hold a conference call on Friday, May 6, 2011 at 11:00 A.M. ET to discuss the results. The press release will be available online at www.dynexcapital.com under “Investor Relations/IR Highlights.” The conference call may be accessed by dialing 1-877-317-6789 and will also be webcast online at www.dynexcapital.com through a link provided under “Investor Relations/IR Highlights.”

The Company also noted that it has filed a new universal shelf registration statement on Form S-3 to replace its existing universal shelf which expired earlier this month. When it is declared effective, the shelf will provide for the potential issuance of up to $500 million of new securities, including common stock, over the next three years. The shelf registration provides the Company with the strategic flexibility to access the capital markets over the next three years should it be beneficial to the Company and its shareholders. The Company has no current plans to access the shelf at this time.

In addition, the Company noted that it has initiated a new dividend reinvestment and share purchase plan under a new Form S-3 registration statement. The dividend reinvestment and share purchase plan provides the opportunity for investors to reinvest their quarterly dividends and for investors and prospective investors to purchase shares of the Company’s common stock, potentially at a discount to the prevailing market price. A copy of the prospectus supplement which describes the terms of the dividend reinvestment and share purchase plan may be obtained from the Securities and Exchange Commission’s website at www.sec.gov or the plan’s administrator, The Bank of New York Mellon. Interested investors may enroll in the plan by contacting The Bank of New York Mellon by accessing their website at www.bnymellon.com/shareowner/isd or by calling 1-866-280-0407.

Finally, the Company noted that it has filed a petition for permission to appeal with the United States Court of Appeals for the Second Circuit (the "Court of Appeals") the certification of the class in the matter styled Teamsters Local 445 Freight Division Pension Fund versus Dynex Capital, Inc. et al. The Company expects to hear soon whether it will be granted permission to appeal the class certification decision by the United States District Court for the Southern District of New York (the “District Court”). The Company continues to believe the claims in the lawsuit are without merit and is defending itself vigorously in this matter. The Company noted that the Court of Appeals denied class certification in a similar lawsuit brought by the same plaintiff against Bombardier Capital, Inc. and other parties. Prior to the District Court's decision for which permission to appeal is being sought, the Company had separately filed a motion with the District Court to dismiss the lawsuit on the ground that the plaintiff committed a fraud on the court by falsifying certain allegations in its complaint derived from various "confidential witnesses." That motion, filed on December 21, 2010, remains pending.

Dynex Capital, Inc. is an internally-managed real estate investment trust, or REIT, which invests in mortgage assets on a leveraged basis. The Company invests in Agency MBS, non-Agency MBS, 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.

Note that the universal shelf registration statement relating to the prospective issuance of up to $500 million in new securities has been filed with the SEC but has not yet been declared effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. When available, a copy of the prospectus included in the universal shelf registration statement, and any prospectus supplement relating to a particular offering, may be obtained on the Security and Exchange Commission’s website at www.sec.gov. When available, a written copy of the prospectus, and any prospectus supplement relating to a particular offering, can be obtained by contacting Alison Griffin, 4991 Lake Brook Drive, Suite 100, Glen Allen, Virginia 23060, [phone].

“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, such as the Company’s current expectations regarding use of the new universal shelf registration statement and the outcome of litigation, are “forward-looking statements” that involve risks and uncertainties. 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.