N@N

GLEN ALLEN, Va.--([ BUSINESS WIRE ])--Dynex Capital, Inc. (NYSE: DX) announced today that it will pay a dividend of $0.29 per common share for the third quarter of 2012 on October 31, 2012 to shareholders of record on October 5, 2012.

Mr. Thomas Akin, Chairman and Chief Executive Officer commented, aWe are pleased to deliver another consistent dividend to our shareholders reflective of our high quality short duration investment strategy. Dynex has consistently retained a portion of our earnings each quarter for additional reinvestment and book value appreciation. This dividend represents the soundness of our business strategy and dedication to generating a strong total return for our shareholders.a

There is no dividend reinvestment discount for the third quarter dividends reinvested through the Company's Dividend Reinvestment and Share Purchase Plan.

Dynex Capital, Inc. is an internally managedreal estate investment trust, or REIT, which invests in mortgage assets on a leveraged basis. The Companyinvests in Agency and non-Agency RMBS and CMBS. The Companyalso has investments in securitized single-family residential and commercial mortgage loansoriginated by the Companyfrom 1992 to 1998. Additional information about Dynex Capital, Inc. is available at [ www.dynexcapital.com ].

aSafe Harbora Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regardingthe business of Dynex Capital, Inc.that are not historical facts are aforward-looking statementsa that involve risks and uncertainties. For a discussion ofthese risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see aRisk Factorsa in the Companyas Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.