Annaly Mortgage Management, Inc. Announces 4th Quarter 2004 Common Stock Dividend.

NEW YORK -- The Board of Directors of Annaly Mortgage Management, Inc. (NYSE: NLY) declared the fourth quarter 2004 common stock cash dividend of $0.50 per common share. The annualized dividend yield for the quarter, based on the December 17, 2004 closing price of $20.16, was 9.9%. This dividend is payable January 27, 2005 to common shareholders of record on December 31, 2004. The ex-dividend date is December 29, 2004. It continues to be the intention of the Company not to return capital to shareholders.

Wellington Denahan-Norris, Vice Chairman and Chief Investment Officer of Annaly, commented on the dividend: "Our team continues to deliver consistent results. They have done a remarkable job managing through several interest rate hikes, a flattening yield curve and fluctuating prepayment speeds. We believe these volatile conditions are likely to continue, in which case we expect our portfolio to continue to demonstrate its ability to adapt to and perform well in a changing market environment."

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. Through its wholly-owned taxable REIT subsidiary, FIDAC, the Company generates fee income from managing, assisting in managing or supervising portfolios for a wide variety of clients on a discretionary basis. The Company has elected to be taxed as a real estate investment trust (REIT) and currently has 121,254,712 shares of common stock outstanding.

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, 2003. 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.