On March 6, 2013, director Daniel K. Osborne notified the Nominating & Corporate Governance Committee of Dynex Capital Inc. of his decision to not stand for re-election to Dynex's Board of Directors at the 2013 Annual Meeting of Shareholders.  Since joining the Dynex Board of Directors in 2005, Mr. Osborne has been a valuable contributor to the Board of Directors and the committees on which he served.  Mr. Osborne will continue to serve as a director and as Chairman of the Audit Committee for the remainder of his current term, which is scheduled to expire on the date of the 2013 Annual Meeting.

 Dynex's Board of Directors intends to search for a new director to serve on its Board but may reduce the size of the Board to five members effective as of the 2013 Annual Meeting while the search is underway.