Dynex Capital, Inc. Announces Third Quarter 2009 Common and Preferred Dividends

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 and a dividend on its Series D 9.50% Cumulative Convertible Preferred Stock of $0.2375 per share. Both the common and preferred dividends will be payable on October 30, 2009 to shareholders of record as of September 30, 2009. The Company also noted that to the extent it earns taxable income in excess of $0.23 per common share for the third quarter, it anticipates that it will continue to use its tax net operating loss carryfoward to offset any shareholder distribution requirement for such excess.

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.