Annaly Mortgage Management, Inc. Announces 1st Quarter Dividend.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 20, 2003

The Board of Directors of Annaly Mortgage Management, Inc. (NYSE: NLY) declared the first quarter 2003 cash dividend of $0.60 per share.

This dividend is payable April 30, 2003 to common shareholders of record on March 31, 2003. The ex-dividend date is March 27, 2003. It continues to be the intention of the Company not to return capital to shareholders.

Commenting on the dividend, Mike Farrell, Chairman, Chief Executive Officer and President, outlined the Company's view on current operating conditions. "The Mortgage Bankers Association Refinancing Index reached another all-time high this week. As we have described in our quarterly conference calls for the past year and as we have illustrated in a commentary posted to our website on January 23, this continuing activity challenges all investors in mortgage securities. In this market of record-setting prepayment rates and record-low interest rates, this management team feels it is neither prudent nor necessary to stretch for returns. To meet our goal of providing a compelling dividend while protecting book value, we have been taking a conservative stance in regard to leverage and asset acquisition. Even with the challenges facing us today, the dividend we are declaring represents an annualized yield of 13.7%, based on the March 19, 2003 closing price of $17.54."

Dividends may be reinvested through Annaly's Dividend Reinvestment Plan. Plan information may be obtained from the Plan Administrator, ChaseMellon Shareholder Services at 1-800-842-7629, at www.annaly.com, or by contacting the Company.

Annaly Mortgage Management, Inc., a Maryland corporation, owns and manages a portfolio of mortgage-backed securities. The Company's principal business objective is to generate net income for distribution to stockholders from the spread between the interest income on its assets and the costs of borrowing to finance its acquisition of these assets. The Company 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. When used, statements which are not historical in nature, including the words "anticipate," "estimate," "should," "expect," "believe," "intend," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties, including, among other things: business conditions and the general economy, especially as they affect interest rates; the federal, state, and local regulatory environment; an increase in the prepayment rate on the loans that back our mortgage-backed securities; the inability to borrow at favorable rates; and the inability to maintain our REIT qualification.

Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected are detailed from time to time in reports filed by us with the Securities and Exchange Commission, including Forms 10-Q and 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.