Market Overview

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


CYS Investments, Inc. (NYSE:CYS) ("CYS") announced that at the special
meeting of stockholders held today, its stockholders approved the merger
transaction in which Eiger Merger Subsidiary LLC ("Merger Sub"), an
indirect, wholly owned subsidiary of Two Harbors Investment Corp. (NYSE: TWO) ("Two Harbors"), will merge with and into CYS, pursuant to the
previously announced merger agreement among CYS, Merger Sub and Two
Harbors. At the special meeting, approximately 59.50% of the outstanding
shares of CYS common stock were voted, with approximately 96.52% of the
votes cast in favor of the CYS merger proposal.

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".

About CYS Investments, Inc.

CYS Investments, Inc., a Maryland corporation, is a specialty finance
company that invests on a leveraged basis primarily in residential
mortgage pass-through certificates for which the principal and interest
payments are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. CYS
refers to these securities as Agency RMBS. CYS has elected to be taxed
as a real estate investment trust for federal income tax purposes.

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 CYS 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.
CYS's ability to predict results or the actual effect of future events,
actions, plans or strategies is inherently uncertain. Although CYS
believes the expectations reflected in any forward-looking statements
are based on reasonable assumptions, CYS 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 CYS, including those detailed in CYS's annual reports on
Form 10-K, quarterly reports on Form 10-Q and periodic reports on
Form 8-K that are available on CYS's website at
and on the Securities and Exchange Commission's (the "SEC") website at,
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 CYS are based on assumptions
that CYS 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 CYS 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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