Market Overview

Two Harbors Investment Corp. Stockholders Approve Merger with CYS Investments Inc.

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Two
Harbors Investment Corp
. (NYSE:TWO) announced that at
the special meeting of stockholders held today its stockholders approved
the issuance of the company's common stock pursuant to the terms of the
previously announced merger agreement with CYS Investments, Inc. (NYSE: CYS).

The merger is expected to close on July 31, 2018, subject to customary
closing conditions. As a result of the merger, among other things, each
share of CYS common stock outstanding at the effective time of the
merger will be converted into the right to receive from Two Harbors (i)
0.4680 newly issued shares of Two Harbors common stock and (ii) cash
consideration of $0.0965 per share. CYS common stock is expected to be
delisted from trading on the New York Stock Exchange ("NYSE") after the
close of trading on July 31, 2018. Two Harbors common stock will
continue to trade on the NYSE under the existing ticker symbol "TWO".

Two Harbors Investment Corp.

Two Harbors Investment Corp., a Maryland corporation, is a real estate
investment trust that invests in residential mortgage-backed securities,
mortgage servicing rights and other financial assets. Two Harbors is
headquartered in New York, New York, and is externally managed and
advised by PRCM Advisers LLC, a wholly owned subsidiary of Pine River
Capital Management L.P. Additional information is available at www.twoharborsinvestment.com.

Additional Information

Stockholders of Two Harbors and other interested persons may find
additional information regarding the company at the Securities and
Exchange Commission's Internet site at www.sec.gov
or by directing requests to: Two Harbors Investment Corp., 575 Lexington
Avenue, Suite 2930, New York, NY 10022, telephone 612-629-2500.

Forward-Looking Statements

This press release may contain "forward-looking statements". Such
statements are subject to numerous assumptions, risks, and
uncertainties. Statements that do not describe historical or current
facts, including statements about beliefs and expectations, are
forward-looking statements. The forward-looking statements are intended
to be subject to the safe harbor provided by Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section
21E of the Securities Exchange Act of 1934, and the Private Securities
Litigation Reform Act of 1995. All statements, other than statements of
historical fact, included in this communication that address activities,
events or developments that Two Harbors expects, believes or anticipates
will or may occur in the future are forward-looking statements. Words
such as "project," "predict," "believe," "expect," "anticipate,"
"potential," "create," "estimate," "plan," "continue," "intend,"
"could," "foresee," "should," "may," "will," "guidance," "look,"
"outlook," "goal," "future," "assume," "forecast," "build," "focus,"
"work," or the negative of such terms or other variations thereof and
words and terms of similar substance used in connection with any
discussion of future plans, actions, or events identify forward-looking
statements. However, the absence of these words does not mean that the
statements are not forward-looking. These forward-looking statements are
not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict. Two
Harbors' ability to predict results or the actual effect of future
events, actions, plans or strategies is inherently uncertain. Although
Two Harbors believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, Two Harbors can give no
assurance that our expectations will be attained and therefore, actual
outcomes and results may differ materially from what is expressed or
forecasted in such forward-looking statements.

There are a number of risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements
included in this communication, including, among others, risks related
to the merger. All such factors are difficult to predict and are beyond
the control of Two Harbors, including those detailed in Two Harbors'
annual reports on Form 10-K, quarterly reports on Form 10-Q and periodic
reports on Form 8-K that are available on Two Harbors' website at http://www.twoharborsinvestment.com
and on the Securities and Exchange Commission's (the "SEC") website at http://www.sec.gov,
and those detailed in the section entitled "Risk Factors" in the joint
proxy statement/prospectus relating to the merger filed with the SEC on
June 25, 2018.

Each of the forward-looking statements of Two Harbors are based on
assumptions that Two Harbors believes to be reasonable but that may not
prove to be accurate. Any forward-looking statement speaks only as of
the date on which such statement is made, and Two Harbors does not
undertake to correct or update any forward-looking statement, whether as
a result of new information, future events or otherwise, except as
required by applicable law. Readers are cautioned not to place undue
reliance on these forward-looking statements that speak only as of the
date hereof.

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