Ellington Financial Announces Pricing of Initial Public Offering

Ellington Financial LLC

today announced the pricing of its initial public offering of 4,500,000 common shares representing limited liability company interests at a price to the public of $22.50 per share. Ellington Financial LLC has also granted the underwriters a 30-day option to purchase an additional 675,000 common shares from Ellington Financial LLC to cover any over-allotments. The common shares are expected to begin trading this morning on the New York Stock Exchange under the ticker symbol "EFC." Ellington Financial LLC is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C. The gross proceeds of the initial public offering before the underwriting discounts, commissions and expenses related to the offering, are expected to be $101.25 million, assuming the underwriters' over-allotment option is not exercised. Ellington Financial LLC intends to use a substantial portion of the net proceeds from the offering to acquire non-agency and agency residential mortgage backed securities and other targeted assets, including derivatives, and to use the balance of the net proceeds, if any, for working capital and general corporate purposes. The offering is expected to close on October 14, 2010. Deutsche Bank Securities Inc. is acting as sole book-running manager and Cantor Fitzgerald & Co. is acting as a co-manager for the offering.