Annaly’s Michael Farrell to Appear Before House Financial Services Committee Hearing on Housing Finance Reform

Annaly Capital Management, Inc. (NYSE: NLY) announced that its Chairman, Chief Executive Officer and President, Michael A.J. Farrell, will appear as a witness before the House Committee on Financial Services tomorrow at a hearing entitled "The Future of Housing Finance—A Review of Proposals to Address Market Structure and Transition.” Mr. Farrell’s written remarks are available on Annaly’s website at www.annaly.com/Admin/AttachmentFiles/145TestimonyofAnnalysFarrellbeforeHFS9-29-10.pdf.

In his remarks, Mr. Farrell states he represents the perspective of secondary market investors who have historically provided the majority of the capital to the $11 trillion mortgage market. In particular, he focuses on the importance of securitization, the guarantee on Agency mortgage-backed securities and the to-be-announced (TBA) market in the current system of housing finance. He says, "I believe that the market will adapt to whatever changes occur to these items in a new housing finance system. However, the market will adapt to the new structure by repricing it. If the new system has significantly different risk, uncertainty and friction than the housing finance system we have now, the consequences may be that our housing finance system is smaller with lower housing values and less flexibility and reduced mobility for borrowers.”

This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements which are based on various assumptions (some of which are beyond our control) may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "anticipate," "continue," or similar terms or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, changes in interest rates, changes in the yield curve, changes in prepayment rates, the availability of mortgage-backed securities for purchase, the availability of financing and, if available, the terms of any financing, changes in the market value of our assets, changes in business conditions and the general economy, changes in government regulations affecting our business, our ability to maintain our qualification as a REIT for federal income tax purposes, risks associated with the broker-dealer business of our subsidiary, and risks associated with the investment advisory business of our subsidiaries, including the removal by clients of assets they manage, their regulatory requirements and competition in the investment advisory business. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically disclaim any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.