Annaly Capital Management, Inc. and CreXus Investment Corp. Announce Pricing of CreXus Investment Corp. Initial Public Offering

NEW YORK--(BUSINESS WIRE)-- Annaly Capital Management, Inc. (NYSE: NLY), today announced that CreXus Investment Corp. has agreed to sell 13,333,334 shares of common stock in its initial public offering at a price of $15.00 per share, for gross proceeds of $200.0 million. CreXus Investment Corp. will be externally managed by Fixed Income Discount Advisory Company, a wholly-owned subsidiary of Annaly.

The offering is expected to close on September 22, 2009. Concurrent with this offering, Annaly will acquire 4,527,778 shares of CreXus Investment Corp. common stock at a price of $15.00 per share. The shares of CreXus Investment Corp. common stock are scheduled to begin trading on September 17, 2009, on the New York Stock Exchange under the symbol "CXS".

Deutsche Bank Securities and BofA Merrill Lynch are acting as joint book-running managers, with JMP Securities, Keefe, Bruyette & Woods, and RBC Capital Markets acting as co-managers. CreXus Investment Corp. has granted the underwriters a 30-day option to purchase up to an additional 2,000,000 shares of CreXus Investment Corp.'s common stock to cover over-allotments, if any.

A registration statement relating to the common stock was filed with, and declared effective by, the U.S. Securities and Exchange Commission on September 16, 2009. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering is being made solely by means of a prospectus. Copies of the prospectus can be obtained from Deutsche Bank Securities, Attention: Prospectus Department, 100 Plaza One, Jersey City, New Jersey 07311, or by calling 1-800-503-4611; or BofA Merrill Lynch, Attention: Prospectus Department, 4 World Financial Center, New York, New York 10080, or by calling 1-212-449-1000.

About CreXus Investment Corp.

CreXus Investment Corp. is a specialty finance company that will acquire, manage, and finance, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate debt, commercial mortgage-backed securities, and other commercial real estate-related assets. CreXus Investment Corp. will be externally managed by Fixed Income Discount Advisory Company, a wholly-owned subsidiary of Annaly.

About Fixed Income Discount Advisory Company

Fixed Income Discount Advisory Company ("FIDAC"), a wholly-owned subsidiary of Annaly, is an investment advisor registered with the Securities and Exchange Commission. FIDAC is a fixed-income investment management company that specializes in managing interest rate and credit-sensitive fixed income strategies.

About Annaly Capital Management, Inc.

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. Annaly'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. Annaly is a Maryland corporation that has elected to be taxed as a REIT.

Forward-Looking Statements

This news release contains 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 Annaly's and CreXus Investment Corp.'s 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 Annaly's 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 Annaly's and CreXus Investment Corp.'s businesses, and their ability to maintain their respective qualifications as a REIT for federal income tax purposes. For a discussion of the risks and uncertainties which could cause Annaly's actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in Annaly's Annual Report on Form 10-K for the fiscal year ended December 31, 2008, in Annaly's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009, and in Annaly's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2009. For a discussion of the risks and uncertainties which could cause CreXus Investment Corp.'s actual results to differ from those contained in the forward looking statements, see CreXus Investment Corp.'s Registration Statement on Form S-11 relating to its initial public offering, including under the headings "Risk Factors," "Special Note Regarding Forward Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Annaly and CreXus Investment Corp. do not undertake, and specifically disclaim any 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.