Dynex Capital, Inc. Announces Pricing of Series B Cumulative Redeemable Preferred Stock Offering

  Dynex Capital, Inc. Announces Pricing of Series B Cumulative Redeemable
  Preferred Stock Offering

Business Wire

GLEN ALLEN, Va. -- April 11, 2013

Dynex Capital, Inc. (NYSE: DX) (the “Company”) announced today that it has
priced a public offering of two million shares of an original issuance of its
7.625% Series B Cumulative Redeemable Preferred Stock, liquidation preference
$25.00 per share, for gross proceeds of $50 million. The Company has granted
the underwriters a 30-day option to purchase up to an additional 300,000
shares of the Series B Preferred Stock to cover any overallotments. The
offering is subject to customary closing conditions and is expected to close
on or about April 19, 2013. The Company intends to apply to list the Series B
Preferred Stock on the New York Stock Exchange.

The Company intends to use the net proceeds from this offering to acquire
additional investments, consistent with its investment strategy, and for
general corporate purposes, which may include, among other things, repayment
of maturing obligations, capital expenditures and working capital.

J.P. Morgan Securities LLC and Keefe, Bruyette & Woods, Inc. are acting as the
joint book running managers for the offering. Credit Suisse Securities (USA)
LLC, Ladenburg Thalmann & Co. Inc., MLV & Co LLC, and Sterne, Agee & Leach,
Inc. are acting as co-managers for the offering.

The offering is being made pursuant to the Company’s existing shelf
registration statement that has been declared effective by the SEC. The
offering of these securities may be made only by means of a prospectus and a
related prospectus supplement that should be read prior to investing, a copy
of which may be obtained by visiting EDGAR on the SEC website at
http://www.sec.gov when available or contacting:

                                            
J.P. Morgan Securities LLC                      Keefe, Bruyette & Woods, Inc.
383 Madison Avenue                              787 Seventh Avenue, 4^th Floor
New York, New York 10179                        New York, New York 10019
Attn: Investment Grade Syndicate Desk –         Attn: Capital Markets
3rd floor
Telephone: 1-212-834-4533                       Telephone: 1-800-966-1559
                                                

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy any securities nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of any such jurisdiction.

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 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.

Note: This release contains “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. The words “believe,”
“expect,” “forecast,” “anticipate,” “estimate,” “project,” “plan,” and similar
expressions identify forward-looking statements that are inherently subject to
risks and uncertainties, some of which cannot be predicted or quantified.
Forward-looking statements in this release include, without limitation,
statements regarding the intention to list the preferred stock on the New York
Stock Exchange, the Company’s intended use of proceeds from the offering and
the Company’s future investment strategies. The Company’s actual results and
timing of certain events could differ materially from those projected in or
contemplated by the forward-looking statements as a result of unforeseen
external factors. These factors may include, but are not limited to, the
rejection of the listing application for the preferred stock on the New York
Stock Exchange, changes in general economic and market conditions, including
the ongoing volatility in the credit markets which impacts asset prices and
the cost and availability of financing, defaults by borrowers, availability of
suitable reinvestment opportunities, variability in investment portfolio cash
flows, fluctuations in interest rates, fluctuations in property capitalization
rates and values of commercial real estate, defaults by third-party servicers,
prepayments of investment portfolio assets, other general competitive factors,
uncertainty around government policy, the impact of regulatory changes,
including the Emergency Economic Stabilization Act of 2008 and the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010, the full impacts of
which are unknown at this time, the impact of Section 404 of the
Sarbanes-Oxley Act of 2002, and another ownership change under Section 382
that further impacts the use of the Company’s tax net operating loss
carryforward. For additional information on risk factors that could affect the
Company’s forward-looking statements, see the Company’s Annual Report on Form
10-K for the year ended December 31, 2012, and other reports filed with and
furnished to the Securities and Exchange Commission.

Contact:

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