Anworth Mortgage Asset Corporation Announces Over-Allotment Exercise of 2.145 Million Shares.

SANTA MONICA, Calif. -- Anworth Mortgage Asset Corporation (NYSE: ANH) announced today that, on January 25, 2008, the underwriters participating in its public offering of 14.3 million shares of common stock, which priced on January 24, 2008, exercised in full the over-allotment option for an additional 2.145 million shares of common stock that Anworth granted to them in connection with the offering. After giving effect to the exercise of the over-allotment option, Anworth will sell 16.445 million shares of common stock in the offering and will receive net proceeds of approximately $136.5 million after underwriting discounts, commissions and estimated offering expenses. Anworth intends to use all of the net proceeds from this offering to acquire agency mortgage-backed securities.

Anworth expects the offering to close on Wednesday, January 30, 2008, subject to the satisfaction of customary closing conditions.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are acting as joint bookrunning managers and Friedman, Billings, Ramsey & Co., Inc., JMP Securities LLC and Sterne, Agee & Leach, Inc. are acting as co-managers. The offering is made by means of a prospectus only which may be obtained from Deutsche Bank Securities Inc., Attn: Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, NJ 07311-3988, or by telephone toll free at 1-800-503-4611, or by email at [e-mail].

This news release shall not constitute an offer to sell nor a solicitation of an offer to buy shares of common stock, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Anworth Mortgage Asset Corporation

Anworth is a mortgage real estate investment trust (REIT) which invests in agency mortgage assets including mortgage pass-through certificates, collateralized mortgage obligations and other real estate securities. Anworth generates income for distribution to shareholders primarily based on the difference between the yield on its mortgage assets and the cost of its borrowings.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including increases in the prepayment rates on the mortgage loans securing our mortgage-backed securities, our ability to use borrowings to finance our assets, risks associated with investing in mortgage-related assets, including changes in business conditions and the general economy, our ability to maintain our qualification as a real estate investment trust for federal income tax purposes, and management's ability to manage our growth. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, certain Current Reports on Form 8-K, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.