Anworth Announces Increase to Series B Preferred Stock Conversion Rate

Anworth Mortgage Asset Corporation ANH announced that in accordance with the terms of Anworth's 6.25% Series B Cumulative Convertible Preferred Stock, or Series B Preferred Stock, the conversion rate of the Series B Preferred Stock will increase from 4.0919 shares of Anworth's common stock to 4.1519 shares of its common stock effective October 1, 2014. As previously announced on September 18, 2014, Anworth's board of directors declared a quarterly common stock dividend of $0.14 per share, which is payable on October 29, 2014 to holders of record of common stock as of the close of business on September 30, 2014. When Anworth pays a cash dividend during any quarterly fiscal period to its common stockholders in an amount that results in an annualized common stock dividend yield greater than 6.25% (the dividend yield on the Series B Preferred Stock), the conversion rate on the Series B Preferred Stock is adjusted based on a formula specified in the Articles Supplementary Establishing and Fixing the Rights and Preferences of the Series B Preferred Stock (and also available on the “Series B Pfd. Stock Conversion” page of Anworth's web site at http://www.anworth.com). As a result of this dividend, the conversion