Annaly Capital Management, Inc. Announces Closing of the Acquisition of Merganser Capital Management

NEW YORK--(BUSINESS WIRE)--

Annaly Capital Management, Inc. (NYSE: NLY) (“Annaly“ or the “Company“) announced today that it has completed the previously-announced transaction to acquire Merganser Capital Management LP (“Merganser“). Merganser is a Boston-based institutional fixed-income manager which, at September 30, 2008, had $4.6 billion in assets under management. Merganser will continue to operate out of its Boston office as a wholly-owned taxable REIT subsidiary of Annaly. Terms were not disclosed.

About Annaly: Annaly manages assets on behalf of institutional and individual investors worldwide through Annaly and through the funds managed by its wholly-owned registered investment advisors, FIDAC and Merganser Capital Management. 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 Annaly receives from FIDAC and Merganser, which earn investment advisory fee income. The Company, a Maryland corporation has elected to be taxed as a real estate investment trust (“REIT“).

About Merganser: Merganser Capital Management Limited Partnership is a team of experienced and dedicated professionals focused on serving the fixed income investment needs of institutional clients. Since 1985, Merganser has worked to deliver consistent results and high quality service in order to build strong and lasting relationships with institutional investment management clients. Based in Boston, Merganser offers cash enhancement, short-term bond, intermediate bond and core bond strategies, as well as customized product portfolios.

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, changes in the market value of our assets, changes in business conditions and the general economy, FIDAC's clients' removal of assets FIDAC manages, FIDAC's regulatory requirements, and competition in the investment management business, changes in government regulations affecting our business, and our ability to maintain our qualification as a REIT for federal income tax purposes. 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, 2007 and any subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically disclaim all 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.

Source: Annaly Capital Management, Inc.