Thornburg Mortgage Announces Extension of Company's Override Agreement with Selected...

Thornburg Mortgage Announces Extension of Company's Override Agreement with Selected Repurchase Agreement Counterparties

SANTA FE, N.M.--(Business Wire)--
Thornburg Mortgage, Inc. (NYSE:TMA) announced today that the
company has received an extension through March 31, 2008, for the
Override Agreement that the company had announced on March 19, 2008
whereby the company agreed to raise a minimum of net proceeds of $948
million in new capital as part of the 364-day agreement the company
entered into with five of its remaining reverse repurchase agreement
counterparties and their affiliates to provide approximately $5.8
billion of reverse repurchase agreement financing. These
counterparties have agreed to both a contractual reduction of margin
requirements for financing the company's mortgage securities and a
suspension of their rights to invoke further margin calls and related
rights under their reverse repurchase agreements, global master
securities lending agreements and auction swap agreements subject to
certain covenants and conditions discussed in the company's March 19,
2008, press release announcing the agreement.

The statements in this press release that are not historical facts
are forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements are based on
management's current expectations and are subject to uncertainty and
changes in circumstance due to a number of factors, including but not
limited to: general economic conditions; ongoing volatility in the
mortgage and mortgage-backed securities industry; the company's
ability to complete the capital raise required for the effectiveness
of the override agreement; the company's ability to meet the ongoing
conditions of the override agreement; the company's ability to obtain
approval of use of the financial distress exemption from the New York
Stock Exchange; the company's ability to obtain shareholder approval
of an increase in authorized shares; market prices for mortgage
securities, interest rates, the availability of ARM securities and
loans for acquisition and other risk factors discussed in the
company's SEC reports, including its most recent annual report on Form
10-K/A and its Registration Statement on Form S-3 . These
forward-looking statements speak only as of the date on which they are
made and except as required by law, the company does not intend to
update such statements to reflect events or circumstances arising
after such date.

Thornburg Mortgage, Inc., Santa Fe
Clay Simmons or Suzanne O'Leary Lopez, 505-989-1900
ir@thornburgmortgage.com

Copyright Business Wire 2008