Two Harbors Investment Corp. Provides Update on Silver Bay Realty Trust Corp. IPO

  Two Harbors Investment Corp. Provides Update on Silver Bay Realty Trust
  Corp. IPO

Business Wire

NEW YORK -- December 14, 2012

Two Harbors Investment Corp. (NYSE: TWO; NYSE MKT: TWO.WS) reported that today
Silver Bay Realty Trust Corp. (“Silver Bay”) announced the pricing of its
initial public offering of 13,250,000 shares of common stock (the “IPO”) and
granted the underwriters a 30-day option to purchase up to an additional
1,987,500 shares of common stock to cover over-allotments, if any. The shares
are expected to begin trading on the New York Stock Exchange on December 14,
2012 under the symbol “SBY.”

Two Harbors previously announced it entered into an agreement with Silver Bay,
pursuant to which it would contribute its existing portfolio of over 2,200
single-family properties to Silver Bay, together with $50 million in cash that
would be used to acquire and renovate properties through the closing. In
exchange for the contribution, Two Harbors would receive approximately 17.8
million shares of common stock of Silver Bay. The shares received by Two
Harbors would be subject to a 90-day lock-up period following the closing of
the IPO, after which Two Harbors may, subject to the discretion and approval
of its Board of Directors and in compliance with applicable securities laws,
hold, sell or otherwise dispose of the shares, which may include a
distribution of the shares by means of a special dividend to Two Harbors
shareholders. The contribution, which remains subject to various conditions to
closing, would close simultaneously with the closing of the IPO.

Silver Bay is a newly organized Maryland corporation focused on the
acquisition, renovation, leasing and management of single-family residential
properties for rental income and long-term appreciation. Silver Bay will be
externally managed by PRCM Real Estate Advisers LLC, a joint venture between
an affiliate of Pine River Capital Management L.P. and Provident Real Estate
Advisors LLC. An affiliate of Pine River also serves as the external manager
of Two Harbors and provides property acquisition and property management
services with respect to Two Harbors’ portfolio of single-family rental
properties. Entities managed by Provident are also contributing approximately
880 single-family residential properties to Silver Bay as part of the
transaction. Upon consummation of the offering and the related transactions,
Silver Bay will own more than 3,100 single-family properties located in
Arizona, California, Florida, Georgia, Nevada, North Carolina and Texas.
Silver Bay intends to elect and qualify to be taxed as a real estate
investment trust.

This press release does not constitute an offer of any securities for sale.

Two Harbors Investment Corp.

Two Harbors Investment Corp., a Maryland corporation, is a real estate
investment trust that invests in residential mortgage-backed securities,
residential mortgage loans, residential real properties and other financial
assets.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of
the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995, including with respect to the completion of Silver Bay’s
IPO or the consummation of the contribution transaction. Actual results may
differ from expectations, estimates and projections and, consequently, readers
should not rely on these forward-looking statements as predictions of future
events. Words such as “expect,” “target,” “assume,” “estimate,” “project,”
“budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,”
“should,” “believe,” “predicts,” “potential,” “continue,” and similar
expressions are intended to identify such forward-looking statements. These
forward looking statements involve significant risks and uncertainties that
could cause actual results to differ materially from expected results.

Readers are cautioned not to place undue reliance upon any forward-looking
statements, which speak only as of the date made. Two Harbors does not
undertake or accept any obligation to release publicly any updates or
revisions to any forward-looking statement to reflect any change in its
expectations or any change in events, conditions or circumstances on which any
such statement is based. Additional information concerning these and other
risk factors is contained in Two Harbors' most recent filings with the
Securities and Exchange Commission. All subsequent written and oral forward
looking statements concerning Two Harbors or matters attributable to Two
Harbors or any person acting on its behalf are expressly qualified in their
entirety by the cautionary statements above.

Contact:

Two Harbors Investment Corp.
July Hugen, 612-629-2514
Investor Relations
july.hugen@twoharborsinvestment.com