Anworth Mortgage Asset Corporation Announces Pricing of Public Offering of Common Stock

SANTA MONICA, Calif. - (BUSINESS WIRE) - Anworth Mortgage Asset Corporation (NYSE: ANH) announced today that it has set the price for the underwritten public offering of 8,000,000 shares of its common stock at $6.10 per share for gross proceeds of $48.8 million. Anworth has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares of common stock to cover over-allotments, if any. All of the shares are being offered by Anworth.

The net proceeds to Anworth from this offering, after deducting underwriting discounts and estimated expenses, are estimated to be approximately $46 million, which Anworth intends to use to acquire agency mortgage-backed securities. Anworth expects the offering to close on Monday, February 9, 2009, subject to the satisfaction of customary closing conditions.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are acting as joint book running managers and JMP Securities LLC, RBC Capital Markets and Sterne, Agee & Leach, Inc. are acting as co-managers.

The offering will be made pursuant to Anworth’s existing shelf registration statement filed with the Securities and Exchange Commission. The offering is made by means of a prospectus only which may be obtained from Deutsche Bank Securities Inc., Attn: Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, NJ 07311-3988, or by telephone toll free at 1-800-503-4611, or by email at prospectusrequest@list.db.com. A prospectus may also be obtained from Credit Suisse Securities (USA) LLC by contacting their Prospectus Department at 1-800-221-1037.

This news release shall not constitute an offer to sell nor a solicitation of an offer to buy shares of common stock, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Anworth is a mortgage real estate investment trust which invests primarily in securities guaranteed by U.S. Government-sponsored agencies, such as Fannie Mae, Freddie Mac or Ginnie Mae. Anworth generates income for distribution to shareholders primarily based on the difference between the yield on its mortgage assets and the cost of its borrowings. The Company’s common stock is traded on the New York Stock Exchange under the symbol ANH.

Source: Anworth Mortgage Asset Corporation

Anworth Mortgage Asset Corporation
John T. Hillman
310-255-4438 or 310-255-4493