Chimera Investment Corporation Announces Pricing of Common Stock Offering

NEW YORK--(Business Wire)--
Chimera Investment Corporation ("Chimera" or the "Company") today announced that
it has set the price for the public offering of 168 million shares of common
stock at $3.22 per share for estimated gross proceeds of approximately $541
million. Chimera has granted the underwriters a 30-day option to purchase up to
an additional 25.2 million shares of common stock to cover over-allotments. All
of the shares are being offered by Chimera.

The estimated net proceeds to Chimera from this offering are expected to be
approximately $519 million, excluding the exercise of the underwriters`
over-allotment option. Immediately after this offering, Annaly Capital
Management, Inc., the parent corporation of Chimera`s external manager, Fixed
Income Discount Advisory Company, will acquire 4,724,017 shares of Chimera`s
common stock in a private offering at the same price per share as the price per
share of the public offering. In aggregate, Chimera raised net proceeds of
approximately $534.2 million in these offerings. The shares of Chimera are
listed on the New York Stock Exchange under the symbol "CIM".

Merrill Lynch & Co. is acting as lead book-running manager for the offering.
Credit Suisse and Deutsche Bank Securities are acting as book-running managers,
with Citi, Morgan Stanley, UBS Investment Bank, JMP Securities, and Keefe,
Bruyette & Woods acting as co-managers. Copies of the prospectus can be obtained
from Merrill Lynch`s prospectus department at 4 World Financial Center, New
York, NY 10080; Phone 212-449-1000.

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of the common shares in any state
or jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
state or jurisdiction. Any offering of common shares is being made only by means
of a written prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.

Chimera is a specialty finance company that invests in residential
mortgage-backed securities, or RMBS, residential mortgage loans, real
estate-related securities and various other asset classes. The Company`s
principal business objective is to provide attractive risk-adjusted returns to
its investors over the long-term, primarily through dividends and secondarily
through capital appreciation. The Company, a Maryland corporation that has
elected to be taxed as a real estate investment trust ("REIT"), is externally
managed by Fixed Income Discount Advisory Company, which is wholly-owned by
Annaly Capital Management, Inc.

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 "believe," "expect," "anticipate," "estimate," "plan,"
"continue," "intend," "should," "may," "would," "will" or similar expressions,
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, our business and
investment strategy; our projected financial and operating results; our ability
to maintain existing financing arrangements, obtain future financing
arrangements and the terms of such arrangements; general volatility of the
securities markets in which we invest; the implementation, timing and impact of,
and changes to, various government programs, including the Treasury`s plan to
buy U.S. government Agency residential mortgage-backed securities, the Term
Asset-Backed Securities Loan Facility and the Public-Private Investment Funds;
our expected investments; changes in the value of our investments; interest rate
mismatches between our investments and our borrowings used to fund such
purchases; changes in interest rates and mortgage prepayment rates; effects of
interest rate caps on our adjustable-rate investments; rates of default or
decreased recovery rates on our investments; prepayments of the mortgage and
other loans underlying our mortgage-backed or other asset-backed securities; the
degree to which our hedging strategies may or may not protect us from interest
rate volatility; impact of and changes in governmental regulations, tax law and
rates, accounting guidance, and similar matters; availability of investment
opportunities in real estate-related and other securities; availability of
qualified personnel; estimates relating to our ability to make distributions to
our stockholders in the future; our understanding of our competition; market
trends in our industry, interest rates, the debt securities markets or the
general economy; use of proceeds of this offering; 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 ending December 31, 2008 and any
subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically
disclaim all obligations, 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.

Investor Relations
1-866-315-9930
www.chimerareit.com

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