2008-08-18 23:43:01 -

www.dynexcapital.com - Dynex Capital, Inc. (NYSE:DX) announced today that its Board of Directors has declared a dividend on its common stock of $0.23 per share, a more than 50% increase over the $0.15 common stock dividend paid in the second quarter. The dividend will be payable on September 30, 2008, to common shareholders of record as of August 29, 2008.

Tom Akin, Chairman and Chief Executive Officer, stated "We are pleased to declare a $0.23 dividend for our common shareholders, an increase of $0.08 per share from last quarter. The $0.23 dividend reflects our confidence in our ability to continue to deliver solid results for our shareholders. Given the wider spreads available in the marketplace, we have increased our

agency RMBS portfolio as of today to approximately $250 million. We plan to continue to selectively purchase agency RMBS and more efficiently leverage our existing capital base."

Dynex Capital, Inc. is a specialty finance company that elects to be treated as a real estate investment trust (REIT) for federal income tax purposes. Additional information about Dynex Capital, Inc. is available at www.dynexcapital.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the business of Dynex Capital, Inc. that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of these risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.

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