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NEW YORK--([ BUSINESS WIRE ])--Annaly Capital Management, Inc. (NYSE: NLY) today announced that it has priced a public offering of 11 million shares of its 7.625% Series C Cumulative Redeemable Preferred Stock (the aSeries C Preferred Stocka), liquidation preference $25.00 per share, for gross proceeds of approximately $275 million. The offering is subject to customary closing conditions and is expected to close on or about May 16, 2012.

In connection with the offering, Annaly has granted the underwriters an option for 30 days to purchase up to an additional 1.65 million shares of the Series C Preferred Stock to cover overallotments, if any.

Annaly expects to use the proceeds of this offering to purchase mortgage-backed securities for its investment portfolio and for general corporate purposes, which may include the retirement of its long-term indebtedness, additional investments and repayment of short term indebtedness.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and UBS Securities LLC are acting as the joint lead book-running managers for the offering. Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., RBC Capital Markets, LLC, and Stifel, Nicolaus & Company, Incorporated are acting as co-managers for the offering.

Annaly has filed a shelf registration statement and prospectus with the Securities and Exchange Commission (SEC), and will file a prospectus supplement for the offering to which this communication relates. Before you invest, you should read the prospectus supplement and the accompanying prospectus and other documents Annaly has filed with the SEC for more complete information about Annaly and this offering. You may obtain these documents for free by visiting EDGAR on the SEC Web site at [ http://www.sec.gov ]. Alternatively, Annaly, the underwriters or any dealer participating in the offering will arrange to send you the prospectus supplement and accompanying prospectus if you request them by contacting:

Merrill Lynch, Pierce, Fenner & Smith Incorporated
4 World Financial Center
New York, NY 10080
Attention: Prospectus Department
e-mail [ dg.prospectus_requests@baml.com ]

J.P. Morgan Securities LLC
383 Madison Avenue
New York, NY 10179
Attn: Investment Grade Syndicate Desk

Morgan Stanley
Attention: Prospectus Dept.
180 Varick Street
2nd Floor
New York, NY 10014
Telephone: (866) 718-1649
Email: [ prospectus@morganstanley.com ]

UBS Investment Bank
299 Park Avenue
New York, NY 10171
Prospectus Department

The shares will be issued pursuant to the shelf registration statement that was previously filed with the SEC. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the shares. An offering of the shares will be made only by means of a prospectus supplement and accompanying prospectus. The prospectus supplement and the accompanying prospectus shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Statements in this press release contain "forward looking" information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve a number of risks and uncertainties. Those factors include conditions in the financial markets and customary offering closing conditions. Please see Annalyas filing with the SEC for certain other factors that may affect forward-looking information.