Thornburg Mortgage Announces Consent of Holders of Senior Subordinated Secured Notes...

Thornburg Mortgage Announces Consent of Holders of Senior Subordinated Secured Notes to Receive Interest Payment in Kind

SANTA FE, N.M.--(Business Wire)--
Thornburg Mortgage, Inc. (NYSE: TMA) announced that it has
received consents, effective September 30, 2008, from the holders of
approximately 98.5% of the aggregate principal amount outstanding of
the Senior Subordinated Secured Notes to accept the September 30th
interest payment in respect of their notes in the form of additional
Senior Subordinated Secured Notes in principal amount equal to the
cash interest payable. All Senior Subordinated Secured Notes will
continue to bear interest at a rate of 18% per annum until the
Triggering Event (as defined in the company's Purchase Agreement dated
March 31, 2008 with the investor parties thereto) is satisfied. As
consideration for their consents, consenting holders will receive a
consent fee, at their election, of either (i) 6.5217 shares (after
giving effect to the one-for-ten reverse split of our common stock
effective on September 26, 2008) of our common stock in respect of
each $1,000 principal amount of the Senior Subordinated Secured Notes
(the "Consent Stock") or (ii) additional Senior Subordinated Secured
Notes with an aggregate principal amount equal to the market value of
the total number of shares of Consent Stock on the date of issuance to
which such holder would have been entitled.

Thornburg Mortgage is a leading single-family residential mortgage
lender focused principally on prime and super-prime borrowers seeking
jumbo and super-jumbo adjustable-rate mortgages.

Thornburg Mortgage, Inc., Santa Fe
Investor Relations
505-989-1900
ir@thornburgmortgage.com
or
Media contact
Suzanne O'Leary Lopez
505-467-5166

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