September 13, 2010 -- Dynex Capital, Inc. announced today that its Board of Directors has authorized the Company to redeem all 4,221,539 outstanding shares of the Company’s Series D 9.50% Cumulative Convertible Preferred Stock. In the redemption, which is expected to be completed on or about October 15, 2010, each holder of a share of Series D Preferred Stock will receive one share of Dynex’s Common Stock. This redemption is taking place pursuant to provisions of Dynex’s articles of incorporation, which provide for the redemption of the Series D Preferred Stock once the closing price of Dynex’s Common Stock has equaled or exceeded $10.00 per share for at least 20 out of 30 consecutive trading days. As of the close of the market today, Dynex’s Common Stock has closed at or above $10.00 per share for 20 out of the most recent 28 trading days, including today. The Company noted that based on its reported June 30, 2010 book value, the redemption will be modestly accretive to book value per common share and post-redemption, reported basic and diluted earnings per share for the Company will be essentially identical. Dynex previously announced a dividend on the Series D Preferred Stock payable for the third quarter of 2010 for which the record date is September 30, 2010 and the payment date is October 29, 2010. Because the redemption will not be effective until October, after the record date for the dividend, each of the holders of Series D Preferred Stock on September 30, 2010 will receive the announced preferred stock dividend of $0.25 per share on October 29, 2010 as if the Preferred Stock were still outstanding. Shareholders will receive any future dividends declared and paid on the Common Stock of the Company to the extent they remain holders of Common Stock. For the third quarter of 2010, the Company declared a Common Stock dividend of $0.25 on the same record date and payment date terms as the Preferred Stock. ____________ Dec. 8, 2005 -- Dynex Capital, Inc. announced today the terms of its redemption of 25%, or approximately 1.4 million shares, of its outstanding Series D 9.50% Cumulative Convertible Preferred Stock (NYSE:DXPRD). The Company also announced that it will mail today a formal notice of the partial redemption to the Series D Preferred Stock shareholders pursuant to the requirements of Section 5 of the Series D Preferred Stock designation under the Company's Articles of Incorporation. The notice states that the effective date of the redemption, which will be made in cash and which will be on a pro rata basis, will be January 9, 2006. In accordance with its Articles of Incorporation, the Company will pay $10.00 for each share of Series D Preferred Stock redeemed, plus accrued dividends of $0.0238 per share for the period January 1, 2006 through the Call Date. In order to receive the cash consideration, Series D Preferred Stock shareholders, or their broker-dealer designees, are required to present all Series D Preferred Stock certificates to Wachovia Bank, N.A., which will then issue a check for the shares redeemed and a new stock certificate for the unredeemed shares. In addition, up until the Call Date, Series D Preferred Stock shareholders will have the right to convert shares of Series D Preferred Stock into Common Stock on a one-to-one basis. After the Call Date, these shareholders maintain the option to convert the shares of Series D Preferred Stock that were not redeemed into Common Stock. ________ May 19, 2004--Dynex Capital, Inc. announced today the final results of its exchange offer for shares of its Series A Cumulative Convertible Preferred Stock, Series B Cumulative Convertible Preferred Stock and Series C Cumulative Convertible Preferred Stock, which expired at 9:00AM Eastern Daylight Time on May 10, 2004. The exchange offer was the first step in a two-part recapitalization plan approved by the company's shareholders at special meetings held in April. Based on a final count provided by Wachovia Bank, N.A., the exchange agent for the exchange offer, 8,890 shares of Series A preferred stock, 10,553 shares of Series B preferred stock and 8,584 shares of Series C preferred stock were tendered in exchange for $823,000 aggregate principal amount of the company's new 9.5% Senior Notes due 2007, effective May 14, 2004. The 9.5% Senior Notes are not listed for trading on a national exchange. Dynex Capital, Inc. also announced today the completion of the second and final step of its recapitalization transaction. Effective May 19, 2004, all of the shares of the company's Series A preferred stock, Series B preferred stock and Series C preferred stock not tendered and accepted in the exchange offer were automatically converted into shares of the company's new Series D Cumulative Convertible Preferred Stock and shares of the company's common stock, plus, if applicable, cash in lieu of fractional shares. Wachovia Bank, N.A., the company's transfer agent, will promptly deliver the shares of Series D preferred stock and common stock issued in the conversion to former holders of the Series A preferred stock, Series B preferred stock and Series C preferred stock.

QUANTUMONLINE.COM SECURITY DESCRIPTION:  Dynex Capital, Inc. 9.50% Series D Cumulative Convertible Preferred Stock, liquidation preference $10 per share, redeemable at the issuer's option any time at $10 per share plus accrued and unpaid dividends, with no stated maturity, and with distributions of 9.50% ($0.95) per annum paid quarterly on 1/31, 4/30, 7/31 & 10/31 to holders of record on the date fixed by the board, not more than 60 days prior to the payment date. The preferred shares are convertible any time at the holder's option into one common share of Dynex Capital Inc. (NYSE: DX), an initial conversion price of $10 per common share. If the price of the common stock exceeds $10 per share for 20 of any 30 consecutive trading days, the company may, at their option, force the preferred shares to be converted into common shares at the then prevailing conversion price. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the convertible preferred stock and the conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.

Stock Exchange	Cpn Rate Ann Amt	LiqPref CallPrice	Call Date Matur Date	Moodys/S&P Dated	Conv Shrs Conv Price	Distribution Dates	15% Tax Rate
NYSE Chart	9.50% $0.95	$10.00 $10.00	Called for 10/15/2010 None	WR NF 9/02/2010	1 $10.00	1/31, 4/30, 7/31 & 10/31 Click for MW ExDiv Date Click for Yahoo ExDiv Date	No

Company's Online Information Links

HOME PAGE:     http://www.dynexcapital.com/
Company's Investor Relations Information	Go to Investor Relations Information
Company's Online News Releases	Go to News Releases
Online Company Profile	Go to Online Profile

Company's Online SEC EDGAR Filings

Company's SEC EDGAR Filings

Go to SEC Filings

Company's Email Address Links

Email Address

info@dynexcapital.com

Address and Phone Numbers

Address:   4551 Cox Road, Suite 300, Glen Allen, VA 23060
Main Phone Number	804-217-5800
Fax Number	804-217-5860
Investor Contact   Kathy Fern	804-217-5800
Toll Free Phone Number	Unknown

PRS - Thomas H. Potts

CFO - Stephen J. Benedetti