Anworth Mortgage Asset Corporation Announces Public Offering of Common Stock

SANTA MONICA, Calif.--(Business Wire)--Anworth Mortgage Asset Corporation (NYSE:ANH) announced today it
plans to make a public offering of 11,000,000 shares of its common
stock. Anworth has granted the underwriters an option, exercisable for
30 days, to purchase up to an additional 1,650,000 shares of common
stock to cover over-allotments, if any. The net proceeds from the
offering are expected to be approximately $89.4 million (or
approximately $102.8 million if the underwriters' over-allotment
option is exercised in full) and Anworth expects to use all of the net
proceeds from this offering to acquire agency mortgage-backed
securities.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA)
LLC are acting as joint bookrunning managers and Friedman, Billings,
Ramsey & Co., Inc., JMP Securities LLC 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 propectusrequest@list.db.com.

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.

About Anworth Mortgage Asset Corporation

Anworth is a mortgage real estate investment trust (REIT) which
invests in mortgage assets, including mortgage pass-through
certificates, collateralized mortgage obligations, mortgage loans and
other real estate securities. 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.

Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995

This press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based upon our
current expectations and speak only as of the date hereof. Our actual
results may differ materially and adversely from those expressed in
any forward-looking statements as a result of various factors and
uncertainties, including increases in the prepayment rates on the
mortgage loans securing our mortgage-backed securities, our ability to
use borrowings to finance our assets, risks associated with investing
in mortgage-related assets, including changes in business conditions
and the general economy, our ability to maintain our qualification as
a real estate investment trust for federal income tax purposes, and
management's ability to manage our growth. Our Annual Report on Form
10-K, Quarterly Reports on Form 10-Q, certain Current Reports on Form
8-K, and other SEC filings discuss some of the important risk factors
that may affect our business, results of operations and financial
condition. We undertake no obligation to revise or update publicly any
forward-looking statements for any reason.

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

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