Annaly's Mike Farrell Rings Opening Bell on the New York Stock Exchange.

NEW YORK -- Annaly Mortgage Management, Inc. (NYSE: NLY) is pleased to announce that its Chairman, CEO and President, Michael A.J. Farrell, had the honor of ringing the opening bell on the New York Stock Exchange today to celebrate the launch of the first U.S. closed-end fund managed by FIDAC, Annaly's wholly-owned subsidiary. First Trust/FIDAC Mortgage Income Fund is the first FIDAC-managed fund product registered under the Investment Company Act of 1940. FIDAC, a registered investment adviser, is the sub-adviser of the fund, and First Trust Advisors L.P. is the fund's adviser.

Ronald Kazel, Executive Vice President commented on FIDAC's continued growth in 2005. "Ringing the bell at the New York Stock Exchange demonstrates the benefits Annaly is deriving from its acquisition of FIDAC in June 2004. We have grown FIDAC's asset management business substantially in 2005, both domestically and globally. In 2005, we launched Sentry Select MBS Adjustable Rate Income Fund II, our third public fund listed on the Toronto Stock Exchange, as well as Prodesse Investment Limited, which is listed on the London Stock Exchange. These funds, along with the growth of other existing funds, shows that our strategy of providing high current income, relative to the current investment climate, with low credit risk, has proved to be very attractive to investors."

Annaly manages assets on behalf of institutional and individual investors worldwide through Annaly and through the funds managed by its wholly-owned registered investment advisor, FIDAC. At March 31, 2005, Annaly and FIDAC had gross assets under management of approximately $38 billion. The Company's principal business objective is to generate net income for distribution to investors from the spread between the interest income on its mortgage-backed securities and the cost of borrowing to finance their acquisition and from dividends the Company receives from FIDAC, which earns investment advisory fee income. The Company, a Maryland corporation, has elected to be taxed as a real estate investment trust ("REIT").

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 "may," "will," "believe," "expect," "anticipate," "continue," or similar terms 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, changes in interest rates, changes in yield curve, changes in prepayment rates, the availability of mortgage-backed securities for purchase, the availability of financing and, if available, the terms of any financing, FIDAC's clients removal of assets FIDAC manages, FIDAC's regulatory requirements, and competition in the investment management business. 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 ended December 31, 2004. We do not undertake, and specifically disclaim any obligation, 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.