Annaly Capital Management, Inc. Announces 1st Quarter Dividend of $0.48 per Share; 9th Straight Increase in Quarterly Dividend

NEW YORK--(BUSINESS WIRE)--

The Board of Directors of Annaly Capital Management, Inc. (NYSE: NLY) declared the first quarter 2008 common stock cash dividend of $0.48 per common share. This dividend is payable April 29, 2008 to common shareholders of record on March 28, 2008. The ex-dividend date is March 26, 2008.

Michael A.J. Farrell, Chairman, CEO and President of Annaly, commented on the dividend: "For many quarters we have been discussing--in quarterly conference calls, earnings releases, roadshow presentations and commentaries on our website--the risks posed by the mortgage debt bubble and its eventual crash. We've seen these risks play out in real time since last August. But not only have we been discussing it, we have been preparing for it by conservatively executing our strategy throughout this turbulent market. Our leverage has been running at the lower end of our range, which enables us to manage portfolio financing operations with our diverse and strong roster of counterparties, including handling the haircut adjustments that are typical for volatile periods like this. Moreover, the vast majority of our assets are Agency pass-through MBS, the most liquid and financeable securities in the Agency space.

"Despite the market turbulence, I am pleased that we continue to demonstrate the improving fundamentals for the company. Thanks to a series of accretive capital raises and widening interest rate spreads, we have been able to increase our dividend over 40% from the prior quarter and 140% from the first quarter of 2007. We believe that these fundamentals will continue to improve in the foreseeable future, and aim to continue to prudently manage our portfolio for long-term performance."

During the quarter, the Company completed a public offering of 58,650,000 shares of common stock. The estimated net proceeds of the offering, including the exercise of the underwriters' over-allotment option were approximately $1.1 billion, net of offering expenses.

The Company distributes dividends based on its current estimate of taxable earnings per common share, not GAAP earnings. Taxable and GAAP earnings will differ because of non-taxable unrealized and realized losses, differences in premium amortization, and non-deductible general and administrative expenses.

Dividends may be reinvested through Annaly's Dividend Reinvestment Plan. Plan information may be obtained from the Plan Administrator, Mellon Investor Services at 1-800-301-5234, at www.annaly.com, or by contacting the Company.

Annaly manages assets on behalf of institutional and individual investors worldwide through Annaly and through the funds managed by its wholly-owned registered investment advisor, FIDAC. The Company's principal business objective is to generate net income for distribution to investors from the spread between the interest income on its mortgage-backed securities and the cost of borrowing to finance their acquisition and from dividends Annaly receives from FIDAC, which earns investment advisory fee income. The Company, a Maryland corporation that has elected to be taxed as a real estate investment trust ("REIT"), currently has 461,759,984 shares of common stock outstanding.

This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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," "continue," or similar terms or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, changes in interest rates, changes in yield curve, changes in prepayment rates, the availability of mortgage-backed securities for purchase, the availability of financing and, if available, the terms of any financing, changes in the market value of our assets, changes in business conditions and the general economy, FIDAC's clients' removal of assets FIDAC manages, FIDAC's regulatory requirements, and competition in the investment management business, changes in government regulations affecting our business, and our ability to maintain our qualification as a REIT for federal income tax purposes. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and any subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically disclaim all obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Source: Annaly Capital Management, Inc.