Anworth Has the Right Board, the Right Management and the Right Strategy to Continue Delivering Stockholder Value Now and Into

 Anworth Has the Right Board, the Right Management and the Right Strategy to
        Continue Delivering Stockholder Value Now and Into the Future

All Three Leading U.S. Proxy Advisory Firms Have Recommended That Stockholders
Vote for Anworth's Director Nominees

The Unanimous Rejection of Every One of Western's Nominees by All Proxy
Advisory Firms Validates Anworth's Highly Qualified and Experienced Directors
and Long-Term Strategy

Anworth Urges Stockholders to Vote FOR its Six Director Nominees On the WHITE
Proxy Card

PR Newswire

SANTA MONICA, Calif., May 19, 2014

SANTA MONICA, Calif., May 19, 2014 /PRNewswire/ --Anworth Mortgage Asset
Corporation (NYSE: ANH) today reminded stockholders to protect their
investment in Anworth by voting "FOR" all of the Company's six director
nominees on the WHITE proxy card at Anworth's 2014 Annual Meeting of
Stockholders on May 22, 2014.

It is important that stockholders vote as soon as possible – no matter how
many or how few shares you own. Even if stockholders have already voted using
the gold proxy card, you have the right to change your vote to the WHITE proxy
card in support of Anworth's director nominees: Lloyd McAdams, Lee A. Ault
III, Joe E. Davis, Robert C. Davis, Joseph E. McAdams and Mark S. Maron.

Because time is short, all stockholders are encouraged to vote by telephone or
Internet according to the instructions on the WHITE proxy card. Voting by
telephone or Internet is the best way for stockholders to ensure that their
votes will be counted. The Anworth Board of Directors also encourages all
stockholders to disregard other proxy materials they may receive from Western
Investment, LLC.

Western, an activist hedge fund which bought its entire 4.0% stake in Anworth
in the last five months, is trying to take control of the Board without any
long-term plan and without paying stockholders anything today for that
control. Without any specific plan to enhance value, and with a slate of
nominees that have zero experience at the helm of a public mortgage REIT,
Anworth believes Western is putting the Company and your investment at
significant risk. All three leading U.S. proxy advisory firms have recommended
that Anworth stockholders vote AGAINST Western's hand-picked nominees.

VOTE THE WHITE PROXY CARD FOR THE ANWORTH BOARD THAT IS CREATING LONG-TERM
VALUE AND DELIVERING RESULTS

  oCommitted to Building Stockholder Value: The Anworth Board and management
    are executing an investment strategy that has delivered long-term returns
    on investment for ALL Anworth stockholders.
  oPositioning Anworth for Future Success: The Board has a proven track
    record of building value through strategic equity issuances and accretive
    buybacks, and is taking significant action to increase long-term returns
    on investment and position Anworth for increased growth, dividend income
    and steady investment returns.
  oExperienced and Highly Qualified Directors: The Anworth Board consists of
    proven and qualified leaders with more than 80 years of combined
    experience in the mortgage REIT industry and is well-suited to continue to
    design and oversee management's execution of Anworth's investment and
    long-term growth strategy.
  oAll Leading Proxy Advisory Firms Support Anworth's Nominees: The three
    leading U.S. independent proxy advisor firms, Institutional Shareholder
    Services (ISS), Glass Lewis and Egan-Jones, have recommended that Anworth
    stockholders vote "FOR" the Company's experienced and highly qualified
    nominees on the WHITE proxy card. ISS, Glass Lewis and Egan-Jones have all
    suggested that no change to Anworth's Board is warranted, reaffirming the
    Company's strong belief that it has the right Board, the right management
    team and the right investment strategy to deliver sustainable long-term
    returns to all stockholders.

DO NOT VOTE THE GOLD PROXY CARD FOR THE HANDPICKED NOMINEES OF A SHORT-TERM
ACTIVIST HEDGE FUND WITH NO LONG-TERM STRATEGY

NO CHANGE TO ANWORTH'S BOARD IS WARRANTED. WESTERN'S NOMINEES HAVE NO
EXPERIENCE WHATSOEVER AS DIRECTORS, OFFICERS OR MANAGERS OF A PUBLIC MORTGAGE
REIT

  oShifting Strategy Without Any Specific Plan to Increase Returns: Western
    continues to change its "plan" for Anworth – shifting its proposal from "a
    liquidation" to "engaging a new manager" or "evaluating strategic
    alternatives," and has yet to offer any investment strategy, business
    model or specific proposal to build long-term value and increase returns. 
  oWestern's Only Proposals Are Already Being Executed by Anworth: The only
    specific recommendations that Western has disclosed for Anworth – to
    aggressively pursue share repurchases and hire an investment bank – are
    already being pursued by the Board and management.  Anworth has been
    repurchasing shares since 2005 at a discount to book value, with its
    buyback program continuing to this day, and the Board's 100% independent
    Strategic Review Committee has already engaged Credit Suisse to identify
    specific transactions to execute Anworth's announced diversification
    strategy and make recommendations regarding potential capital markets
    transactions.
  oWe Believe Western and its Nominees Do Not Have the Background, Experience
    or Qualifications to Run and Oversee Anworth: Western and its slate of
    nominees have no experience whatsoever as directors, officers or managers
    of a publicly traded REIT. In contrast, Anworth's proven Board and
    management team have over 80 years of combined experience in the mortgage
    REIT industry.

STOCKHOLDERS ARE URGED TO PROTECT THEIR INVESTMENT INCOME AND THE LONG-TERM
VALUE OF THEIR ANWORTH STOCK

VOTE TO ELECT ALL SIX OF ANWORTH'S DIRECTOR NOMINEES

VOTE THE WHITE PROXY CARD TODAY!

The Anworth Board of Directors urges stockholders to protect the value of
their investment by affirmatively voting "FOR" the election of all of the
Board's six director nominees: Lloyd McAdams, Lee A. Ault III, Joe E. Davis,
Robert C. Davis, Joseph E. McAdams and Mark S. Maron on the WHITE proxy card.

ANWORTH RECOMMENDS THAT STOCKHOLDERS DISREGARD ANY GOLD PROXY CARD AND PROXY
MATERIAL THEY RECEIVE FROM OR ON BEHALF OF WESTERN

The Anworth Board urges stockholders NOT to sign or return any gold proxy card
they may already have received or will receive from or on behalf of Western.
Instead, the Board urges stockholders to complete, sign, date and return only
the WHITE proxy card enclosed with this letter and return it in the
pre-addressed envelope provided. Stockholders may also refer to the
instructions on the WHITE proxy card to vote their shares via the Internet or
by phone.

All stockholder votes are extremely important, no matter how many or how few
shares they own. We recommend that all stockholders vote today by telephone,
online, or by signing and dating the enclosed WHITE proxy card and returning
it in the postage-paid envelope provided. We urge stockholders to not return
the gold card, even to vote against Western's nominees, as doing so will
cancel out any previous vote that has been cast for the Board's director
nominees.

If you have questions or need assistance voting your WHITE proxy card, please 
contact:

MacKenzie Partners, Inc.

105 Madison Avenue
New York, New York 10016
proxy@mackenziepartners.com
Call Collect: (212) 929-5500
or
Toll-Free (800) 322-2885

About Anworth Mortgage Asset Corporation
Anworth is an externally-managed mortgage real estate investment trust. Our
principal business is to invest primarily in securities guaranteed by the U.S.
Government, such as Ginnie Mae, or guaranteed by federally sponsored
enterprises, such as Fannie Mae or Freddie Mac. A small part of our business
also consists of home rentals, where we acquire single-family residential
properties within our target markets and lease them to quality tenants. We
seek to generate income for distribution to our shareholders primarily based
on the difference between the yield on our mortgage assets and the cost of our
borrowings. We are managed by Anworth Management, LLC, or the Manager,
pursuant a management agreement. The Manager is subject to the supervision and
direction of our Board of Directors and is responsible for (i) the selection,
purchase and sale of our investment portfolio; (ii) our financing and hedging
activities; and (iii) providing us with management services and other services
and activities relating to our assets and operations as may be appropriate.
Our common stock is traded on the New York Stock Exchange under the symbol
"ANH." Anworth is a component of the Russell 2000® Index.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995
This news release may contain forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are based upon our current expectations
and speak only as of the date hereof. Forward-looking statements, which are
based on various assumptions (some of which are beyond our control) may be
identified by reference to a future period or periods or by the use of
forward-looking terminology, such as "may," "will," "believe," "expect,"
"anticipate," "assume," "estimate," "intend," "continue," or other similar
terms or variations on those terms or the negative of those terms. Our actual
results may differ materially and adversely from those expressed in any
forward-looking statements as a result of various factors and uncertainties,
including but not limited to, changes in interest rates; changes in the market
value of our mortgage-backed securities; changes in the yield curve; the
availability of mortgage-backed securities for purchase; increases in the
prepayment rates on the mortgage loans securing our mortgage-backed
securities; our ability to use borrowings to finance our assets and, if
available, the terms of any financing; risks associated with investing in
mortgage-related assets; changes in business conditions and the general
economy, including the consequences of actions by the U.S. government and
other foreign governments to address the global financial crisis;
implementation of or changes in government regulations affecting our business;
our ability to maintain our qualification as a real estate investment trust
for federal income tax purposes; our ability to maintain an exemption from the
Investment Company Act of 1940, as amended; risks associated with our home
rental business; and the Manager's ability to manage our growth. Our Annual
Report on Form 10-K and other SEC filings discuss the most significant risk
factors that may affect our business, results of operations and financial
condition. We undertake no obligation to revise or update publicly any
forward-looking statements for any reason.

Contact: John T. Hillman @ 310/255-4438 or 310/255-4493

SOURCE Anworth Mortgage Asset Corporation
 
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