CORRECTING and REPLACING Western Investment LLC Issues New Open Letter to Anworth Mortgage Asset Corporation Stockholders

  CORRECTING and REPLACING Western Investment LLC Issues New Open Letter to
  Anworth Mortgage Asset Corporation Stockholders

 Urges All Shareholders to Vote the GOLD Proxy Card to Elect Its Independent
                                   Nominees

CORRECTION...by Western Investment LLC

Business Wire

SALT LAKE CITY -- May 15, 2014

Please replace the release with the following corrected version due to
multiple revisions in the section listing the biographical information for the
nominees.

The corrected release reads:

   WESTERN INVESTMENT LLC ISSUES NEW OPEN LETTER TO ANWORTH MORTGAGE ASSET
                           CORPORATION STOCKHOLDERS

 Urges All Shareholders to Vote the GOLD Proxy Card to Elect Its Independent
                                   Nominees

Western Investment LLC, a significant shareholder of Anworth Mortgage Asset
Corporation with aggregate ownership of approximately 4% of the outstanding
common stock, today released the following open letter to stockholders:

Dear Fellow Stockholder:

              DON’T BE FOOLED BY MANAGEMENT’S MISLEADING CLAIMS

                ANWORTH’S POOR PERFORMANCE NECESSITATES CHANGE

 VOTE FOR OUR HIGHLY QUALIFIED NOMINEES AND AGAINST MANAGEMENT’S COMPENSATION
                       PROPOSALS (PROPOSALS #2 AND #3)

Don’t be fooled by management’s attempts to obscure Anworth’s consistently
horrible performance results. When compared to its peers, Anworth Mortgage
Asset Corporation (“Anworth”) has fallen far below average over ALL relevant
periods for the past decade.

                          THE EMPEROR HAS NO CLOTHES

No matter how management tries to spin its story, the simple fact remains that
Anworth has been a poor investment when compared with other comparable REITs.
Investors have experienced over a decade of investment declines. Stockholders
who invested in Anworth on August 31, 2003 have a cumulative loss of almost 6%
through March 31, 2014 even after giving effect to reinvested dividends.
Although management has loudly trumpeted the very recent increase in the
stock’s trading price, a short term increase does not erase years of subpar
results.

Anworth has tried to claim that they are successful because they have
outperformed the NAREIT Mortgage REIT index. However, what Anworth doesn’t
tell you is that the NAREIT Mortgage REIT Index contains many companies that
were mortgage originators or invested in subprime mortgages or other more
exotic and riskier strategies and is not representative of what Anworth
purports to be. Further, by the very chart included in Anworth’s Form 10-K,
they have underperformed the NAREIT index.

   WHEN YOU COMPARE ANWORTH’S PERFORMANCE AGAINST COMPARABLE COMPANIES, NOT
AGAINST SUBPRIME REITS, ANWORTH FAIRS EVEN WORSE. ANWORTH IS AT THE BOTTOM OF
                                  THE LIST.

  Cumulative Return for Period Indicated Including Reinvestment of Dividends

                                      6/12/2009* through 3/31/2014
American Capital Agency Corp             173.39%
MFA Financial, Inc.                      137.03%
Dynex Capital Inc.                       89.99%
Capstead Mortgage Corp.                  85.90%
CYS Investments Inc.                     55.93%
Annaly Capital Management, Inc.          46.31%
Hatteras Financial Corp.                 44.56%
Anworth Mortgage Asset Corporation       36.04%
ARMOUR Residential REIT Inc.             (10.66)%
Anworth Rank                             8^th out of 9

_____________
* All high grade mortgage REITs outstanding on or before the issue date of CYS
Investments of 6/12/09.

As evidenced by the following chart, which compares Anworth to all other
comparable publicly traded mortgage REITs outstanding for the entire period,
Anworth’s price to book value ratio has shown a constant decline over all time
periods.

Ratio of Average Stock Price to Book Value at the End of Each Calendar Quarter

                                                          
REIT                             1 year   3 years   5 years   10 years
Annaly Capital Management,       93.6%    98.9%     101.4%    115.9%
Inc.
Capstead Mortgage Corp.          95.2%    97.7%     100.3%    111.7%
Dynex Capital Inc.               102.2%   100.4%    99.5%     98.5%
MFA Financial, Inc.              97.8%    99.4%     99.5%     102.7%
Anworth Mortgage Asset           83.7%    91.1%     93.9%     96.2%
Corporation
Anworth Rank                     LAST     LAST      LAST      LAST
                                                             

What has been management’s response to Anworth’s poor performance? Anworth
needs to diversify but has made a poor choice in going into single family
rentals at this point in the housing cycle. The major participants in this
space see limited opportunity and are cutting back sharply on purchases.
Further, Anworth does not have the capital or the infrastructure to support a
rental venture. Analysts were less than enthusiastic about the idea following
Anworth’s recent earnings call on April 30, but management seems desperate to
show they are doing something.

         Anworth has failed in the past when attempting to diversify.

In November 2003, Anworth invested $75 million in a subsidiary called
Belvedere Trust and by 2007 had $151 million at risk. Belvedere purchased many
less than prime quality non-agency mortgages and invested in similar mortgage
securities created by others, all on a leveraged basis. Then, in 2007 when the
credit crisis hit the mortgage market and Belvedere was unable to meet margin
calls, it was completely wiped out. Anworth’s loss of $151 million on the
Belvedere investment represented approximately 30% of Anworth’sequity. Not an
insignificant portion of shareholder’s net worth lost as a result of a risky
investment.

Anworth management failed the last time that they tried to diversify. Now they
want to try to diversify again. Western Investment, together with its fellow
participants in this solicitation, own stock valued at over $28.7 million as
of May 6, 2014. Together with our fellow stockholders, we cannot afford any
more losses!

   Management Continues to Reap Rewards Despite Anworth’s Poor Performance

Management has collected almost $80 million in fees over the past decade
despite Anworth’s poor performance, including over $11 million per year in
2012 and 2013, under their fixed-based pay structure. Such pay structures do
not effectively link management’s interests with those of stockholders given
that management fees remain payable even if Anworth experiences net losses, or
performance declines. The arrangement may not guarantee that executives devote
the time and effort to maximize the investment portfolio returns as they are
ultimately insulated from downside risks borne by stockholders. Appallingly,
these fixed-based management fees increased in fiscal 2013 despite Anworth's
lackluster performance.

    Anworth Attempts to Mask its Poor Performance by Increasing Dividends

Anworth has tried to mislead stockholders regarding its alleged improved
performance by touting that it increased its dividend as compared to last
year. However, Anworth’s recently declared dividend included a payment from
capital and did not in any way represent increased earnings, a move which drew
criticism from analysts in Anworth’s recent earnings call. Don’t be fooled by
accounting machinations. Anworth has underperformed and continues to produce
lackluster results.

We believe Anworth management has repeatedly failed its stockholders and it is
time for stockholders to replace the Board with directors who will take action
that will lead to maximum value for investors.

We are seeking your support on the GOLD proxy card FOR the election of our
truly INDEPENDENT director nominees to Anworth’s Board of Directors, none of
whom are affiliated with or controlled by Western Investment.

We have assembled an extraordinarily qualified team of nominees, who, if
elected, would constitute one of the strongest and most experienced boards of
any asset manager in the world.

PAUL DEROSA

  *33 years as a senior or head fixed income portfolio manager
  *Managed a portfolio of $10 to $20 billion
  *Previously head of proprietary trading and financial derivatives at
    Citibank
  *Managed Eastbridge, a US Treasury primary dealer
  *Highly successful hedge fund manager
  *Senior Partner at Mt. Lucas Management
  *Board member: Intervest Bankshares Corporation (IBCA). Previously on the
    Board of Directors of AMBAC Financial Group, Inc. (AMBC)

GREG DUBE

  *37 years as a senior manager of fixed income sales, trading and portfolio
    management
  *Managed a portfolio of $15 billion at Alliance Bernstein
  *Previously on the Board of Directors of Gabelli Global MultiMedia Trust
    Inc. (GGT)

KENNETH DUNN

  *15 years as co-head of fixed income portfolio management at Morgan Stanley
  *Managed a portfolio of $100 billion
  *Professor at and previously served as Dean of David A. Tepper Business
    School Carnegie-Mellon
  *Board member: NextEra Energy (NEE). Previously on the Board of Directors
    of BlackRock, Inc. (BLK), the world’s largest asset manager, managing over
    $4 trillion

RONALD MASS

  *21 years as a Senior Portfolio Manager at Western Asset Management (no
    affiliation with Western Investment)
  *Managed over $100 billion portfolios of mortgage and asset backed
    securities
  *Founding partner Almitas Capital
  *Board Member: Woodside Homes, a privately held home builder

SCOTT RICHARD

  *17 years as a fixed income portfolio manager. Mortgage specialist
  *One of three portfolio managers who were jointly responsible for $100
    billion Morgan Stanley portfolio
  *Previously head of mortgage research at Goldman Sachs
  *Practice Professor of Finance at the Wharton School of the University of
    Pennsylvania
  *Previously professor of financial economics Carnegie-Mellon University
  *Past Visiting Professor at Sloan School of Management (MIT)

A mortgage REIT by definition primarily invests in mortgage securities which
are fixed income securities. It follows that the types of experience that are
most relevant and most valuable to being on the board of a mortgage REIT are
that of buying, selling and researching fixed income securities and managing
fixed income portfolios, and particularly of mortgage-backed securities.

                                                    
                  Years of experience in fixed income     Maximum Size
                                                     
Nominee           securities                              of Portfolio
                  Buy, sell and
                                        Manage       Managed
                  research
Paul DeRosa     39                      39           $20 billion
Greg Dube       37                      8            $15 billion
Kenneth Dunn    15                      15           $100 billion
Ronald Mass     23                      21           $100 billion
Scott Richard   22                      17           $100 billion
TOTAL           136                     100          $345 billion
                                                     

By contrast, other than their failed tenure at Anworth, Anworth’s independent
directors have zero years of experience buying, selling or researching fixed
income securities, zero years of experience managing fixed income securities
and have managed $0 worth of fixed income assets.

Western’s nominees with a combined 136 years of institutional fixed income
experience, 100 years of fixed income portfolio management and $345 billion of
assets managed vastly outrank Anworth’s nominees who total zero, zero and
zero, respectively.

    STOCKHOLDERS NEED A BOARD COMMITTED TO MAXIMIZING VALUE FOR INVESTORS.

Time is short. We urge you to vote the GOLD proxy today by following the
simple instructions for telephone or internet voting on the GOLD proxy card.

If you have any questions or require assistance in voting, please contact our
proxy solicitor at the numbers provided below. Thank you for your support.

Regards,

Arthur D. Lipson
Managing Member,
Western Investment LLC


If you have any questions or need assistance voting your Shares,

please call:



InvestorCom, Inc.

65 Locust Avenue, Third Floor

New Canaan, Connecticut 06840



Stockholders Call Toll-Free at: (877) 972-0090

Banks and Brokers Call Collect at: (203) 972-9300



You may also contact Western Investment LLC via email at
info@fixmyfund.com



Proxy materials are also available at www.fixmyfund.com

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