Anworth Mortgage Asset Corporation Reports Completion of Third Securitization by Belvedere Trust Mortgage Corporation.

Business Editors

SANTA MONICA, Calif.--(BUSINESS WIRE)--June 1, 2004

Anworth Mortgage Asset Corporation (NYSE: ANH) announced today that its wholly owned subsidiary, Belvedere Trust Mortgage Corporation, has completed its third securitization of jumbo hybrid adjustable-rate mortgages. The size of the securities offered through Countrywide Securities was approximately $312 million. The details of the offering can be found on Bloomberg under CWHL 2004-HYB3.

Lloyd McAdams, CEO of Anworth, said, "We are very pleased with the market's reception of these securities. Anworth has also increased its equity allocation to Belvedere from $25 million as reported earlier to $70 million."

About Anworth Mortgage Asset Corporation

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

About Belvedere Trust Mortgage Corporation

Belvedere has been formed as a qualified mortgage real estate investment trust (REIT) subsidiary to acquire mortgage loans with a focus on high credit-quality adjustable-rate and hybrid loans as well as second-lien mortgages. Belvedere and its subsidiaries securitize such mortgage loans for financing purposes and to sell mortgage-backed securities in the capital markets.

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, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Forms 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.