Two Harbors Investment Corp. Announces 2012 Dividend Tax Treatment

  Two Harbors Investment Corp. Announces 2012 Dividend Tax Treatment

Business Wire

NEW YORK -- January 22, 2013

Two Harbors Investment Corp. (NYSE: TWO; NYSE MKT: TWO.WS) today announced the
tax treatment of common stock dividends declared in 2012. This information is
provided to assist stockholders with tax reporting requirements related to
dividend distribution of taxable income by Two Harbors Investment Corp.

Stockholders should review the 2012 tax statements received from their
brokerage firms or other institutions to ensure that the statements agree with
the information provided below. Additionally, as each stockholder’s tax
situation may be different, stockholders are encouraged to consult with their
own professional tax advisor with respect to their individual tax
consequences.

During 2012, Two Harbors did not generate qualified dividends income (QDI).
Further, no portion of the company’s 2012 dividend distributions is expected
to consist of unrelated business taxable income (UBTI), which is subject to
special tax reporting for certain tax exempt investors.

Because Two Harbors is a REIT, dividends declared in the last month of a
calendar year with a record date in that calendar year, but which are payable
in January of the following year, are considered paid for Form 1099 reporting
purposes on the record date, not on the payable date, to the extent the REIT
has any remaining undistributed earnings and profits (as computed for income
tax purposes) as of December 31 of that calendar year.

The Federal income tax classification of the 2012 distribution as it is
expected to be reported on Form 1099-DIV is set forth in the following table.

                                                               
                                                     Box 1a     Box 2a
                                                       Total
                                        2012 Total     2012        2012 Capital
Declaration  Record      Payable     Distribution  Ordinary   Gain
Date          Date         Date         Per            Dividends   Distribution
                                        Share
12/17/2012   12/31/2012  1/18/2013   $0.55000      $0.449587  $0.100413
9/12/2012    9/24/2012   10/22/2012  $0.36000      $0.294275  $0.065725
6/12/2012    6/22/2012   7/20/2012   $0.40000      $0.326972  $0.073028
3/14/2012    3/26/2012   4/20/2012   $0.40000      $0.326972  $0.073028
Totals                                 $1.71000      $1.397805  $0.312195
                                                               

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 and other financial assets. Two Harbors is
headquartered in Minnetonka, Minnesota, and is externally managed and advised
by PRCM Advisers LLC, a wholly-owned subsidiary of Pine River Capital
Management L.P. Additional information is available at
www.twoharborsinvestment.com.

Additional Information

Stockholders and warrant holders of Two Harbors, and other interested persons,
may find additional information regarding the company at the Securities and
Exchange Commission’s Internet site at www.sec.gov or by directing requests
to: Two Harbors Investment Corp., 601 Carlson Parkway, Suite 1400, Minnetonka,
MN 55305, telephone 612-629-2500.

Contact:

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