Dynex Capital, Inc. Announces Third Quarter Dividends of $.25

Dynex Capital, Inc.

announced today that its Board of Directors has increased the quarterly dividend on its common stock to $0.25 per share for the third quarter of 2010. The Company had paid $0.23 per common share since the third quarter of 2008. Due to its participation feature, the Series D 9.50% Cumulative Convertible Preferred Stock will also receive $0.25 per share instead of the normal quarterly rate of $0.2375 per share. Both the common and preferred dividends will be payable on October 29, 2010 to shareholders of record as of September 30, 2010.