Annaly Mortgage Management, Inc. Announces Decision to Postpone Proposed Offering.

NEW YORK--(BUSINESS WIRE)--October 26, 1999--

Annaly Mortgage Management, Inc. (NYSE:NLY) announced today that it has postponed its proposed offering of 5.0 million shares of common stock. This decision was based on current price levels of NLY common stock. Annaly Mortgage Management, Inc. closed at $8 3/16 per common share on the New York Stock Exchange on October 25, 1999.

Michael A.J. Farrell, Chairman and Chief Executive Officer commented, "This decision is consistent with the dialogue that we have had with shareholders over the three year operating history of the firm. While the underwriters were successful in attracting new investors, and the current operating environment remains lucrative, the recent volatility in the equity markets has contributed to reducing the share price to a dilutive level for existing shareholders. Management will revisit the economics of the offering if the price of the common stock appreciates above the closing price of October 25, 1999. As our history demonstrates, we are steadfast in the transparency and quality of our operations. This philosophy naturally extends to the question of dilution. Annaly has increased its earnings consecutively since its inception. This track record is reflective of the same operating spirit that has gone into this decision. The current shareholders are not well served by adding new equity at this price."

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to our operating environment and the appropriate value of our common stock. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by these forward-looking statements. For more complete information concerning factors which could affect our results, it is important that you carefully read the risk factors disclosure and other information set forth in our 10-K and 10-Q filings and in the, registration statements, prospectuses and other documents that we have filed with the Securities and Exchange Commission. These documents are publicly available, including through the SEC's Internet web site at http://www.sec.gov.