Dynex Capital, Inc. Announces Tax Information on Common Stock and Series A Preferred Dividends

  Dynex Capital, Inc.Announces Tax Information on Common Stock and Series A
  Preferred Dividends

Business Wire

GLEN ALLEN, Va. -- February 11, 2013

Dynex Capital, Inc. (NYSE: DX) today announced tax information on its 2012
Common Stock and Series A Preferred Stock dividends.

Dividend Tax Information

We are providing this information below to assist you in your tax reporting
requirements relating to the distribution as dividends of taxable income by
Dynex Capital, Inc. (“Dynex” or the “Company”). As detailed below, dividends
paid by Dynex on its Common Stock and Series A Preferred Stock were in part
ordinary taxable income and in part capital gains. No portion of the dividends
paid in 2012 were attributable to a return of capital. The distributions of
ordinary taxable income are not eligible for the tax rate reductions enacted
for qualified dividend income under the Jobs and Growth Tax Relief
Reconciliation Act of 2003 and are accordingly being reported as
non-qualifying dividends.

Shareholders should review the 2012 tax statements and/or 1099s that they
receive from their brokerage firms in order to ensure that the dividend
distribution information reported on such statements conforms to the
information set forth in this notice.

The table below provides a summary of the tax information relating to the
quarterly dividend distributions of the Company for the 2012 tax year:

Dynex Capital Common Stock (CUSIP 26817Q506)

Dividend     Payment      Dividends      Ordinary   Capital Gain   Return of
Record      Date        per           Income    Distribution  Capital   
Date                      Share
12/31/2012   01/31/2013   $0.2900        $0.25234   $0.03766       $0.00000
10/05/2012   10/31/2012   $0.2900        $0.22983   $0.06017       $0.00000
07/06/2012   07/31/2012   $0.2900        $0.24813   $0.04187       $0.00000
04/05/2012   04/30/2012   $0.2800        $0.27355   $0.00645       $0.00000  
                          $1.1500        $1.00385   $0.14615       $0.00000  

Dynex Capital Series A Preferred Stock (CUSIP 26817Q704)

Dividend     Payment      Dividends      Ordinary   Capital Gain   Return of
Record      Date        per           Income    Distribution  Capital   
Date                      Share
10/01/2012   10/15/2012   $0.436810      $0.34618   $0.09063       $0.00000

Tax Disclaimer

The information above should not be construed as tax advice and is not a
substitute for careful tax planning and analysis. You should consult your own
tax advisor regarding the specific federal, state, local, foreign and other
tax consequences to you regarding your ownership of shares of the Company’s
Common and Preferred stock.

Dynex Capital, Inc. is an internally managed mortgage real estate investment
trust, or mortgage 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 or purchased by the Company during the 1990s.
Additional information about Dynex Capital, Inc. is available at
www.dynexcapital.com.

Contact:

Dynex Capital, Inc.
Alison Griffin, 804-217-5897