Dynex Capital Announces It Has Filed Petition for Permission to Appeal with the United States Court of Appeals

Dynex Capital, Inc. DX announces that it has filed a petition for permission to appeal with the United States Court of Appeals for the Second Circuit the certification of the class in the matter styled Teamsters Local 445 Freight Division Pension Fund versus Dynex Capital, Inc. et al. The Company expects to hear soon whether it will be granted permission to appeal the class certification decision by the United States District Court for the Southern District of New York. The Company continues to believe the claims in the lawsuit are without merit and is defending itself vigorously in this matter. The Company noted that the Court of Appeals denied class certification in a similar lawsuit brought by the same plaintiff against Bombardier Capital, Inc. and other parties. Prior to the District Court's decision for which permission to appeal is being sought, the Company had separately filed a motion with the District Court to dismiss the lawsuit on the ground that the plaintiff committed a fraud on the court by falsifying certain allegations in its complaint derived from various "confidential witnesses." That motion, filed on December 21, 2010, remains pending.