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Annaly's FIDAC Expands in Canada; Mike Farrell Rings Opening Bell on the Toronto Stock Exchange

05 Apr 2005
Annaly's FIDAC Expands in Canada; Mike Farrell Rings Opening Bell on the Toronto Stock Exchange
Company Release - 04/05/2005 16:03

NEW YORK--(BUSINESS WIRE)--April 5, 2005--Annaly Mortgage Management, Inc. (NYSE: NLY) is pleased to announce that its Chairman, CEO and President, Michael A.J. Farrell, had the honor of ringing the opening bell on the Toronto Stock Exchange today to celebrate the expansion of the company's investment advisory business in Canada. Annaly's wholly-owned subsidiary, FIDAC, is the investment manager for two trusts currently traded on the Toronto Stock Exchange, Mortgage-Backed Securities Trust (TSX: MF.UN and MF.U) and MBS Adjustable Rate Income Fund (TSX: MTF.UN). FIDAC will also be the investment manager for a third trust, Sentry Select Adjustable Rate Income Fund II, which filed a final prospectus on March 29, 2005 and is expected to begin trading in mid-April.

Mr. Farrell commented on FIDAC's activities. "We are pleased that our asset management business continues to grow in Canada and around the world. In our FIDAC-managed funds, we aim to generate compelling investment yields for investors using high credit-quality assets. These elements of our investment objective--high current income with low credit risk--are finding acceptance on an absolute and relative value basis in today's investment climate. In addition, we believe investor demand for investment products with these attributes will grow as aging demographic trends continue in Canada, the US and around the world. We look forward to future offerings in Canada and continued growth in Annaly's asset management business."

The manager of the trusts in Canada is Sentry Select Capital Corp. Sentry Select is an investment manager with total assets under management of approximately C$4.0 billion.

Annaly manages assets on behalf of institutional and individual investors worldwide through Annaly and through the funds managed by its wholly-owned registered investment advisor, FIDAC. At December 31, 2004, Annaly and FIDAC had gross assets under management of approximately $36 billion. The Company's principal business objective is to generate net income for distribution to investors from the spread between the interest income on its mortgage-backed securities and the cost of borrowing to finance their acquisition and from dividends the Company receives from FIDAC, which earns investment advisory fee income. The Company, a Maryland Corporation, has elected to be taxed as a real estate investment trust ("REIT").

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 and Section 21E of the Securities Exchange Act of 1934. 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 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, FIDAC's clients removal of assets FIDAC manages, FIDAC's regulatory requirements, and competition in the investment management 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2004. 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.


    CONTACT: Annaly Mortgage Management, Inc.

             Investor Relations:
             1-888-8Annaly
             www.annaly.com

    SOURCE: Annaly Mortgage Management, Inc.

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