Bimini Capital Management Reports First Quarter 2008 Results.

VERO BEACH, Fla. -- Bimini Capital Management, Inc. (BMNM.PK):

* $0.80 Book Value Per Share at Quarter End

* MBS Portfolio Remains 100% Invested in Agency MBS

* Exit from Mortgage Origination Business Continues to Drive Improvement in Quarterly Results

Bimini Capital Management, Inc. (BMNM.PK) ("Bimini Capital" or the "Company"), a real estate investment trust ("REIT"), today announced a loss from continuing operations of $0.8 million, or $(0.03) per Class A Common Share, for the three month period ended March 31, 2008, compared with a loss from continuing operations of $3.2 million, or $(0.13) per Class A Common Share, for the corresponding prior year period. On a consolidated basis, the Company today reported a net loss of $5.1 million, or $(0.20) per Class A Common Share, for the three month period ended March 31, 2008, compared with a net loss of $78.1 million, or $(3.14) per Class A Common Share, for the corresponding prior year period. Included in the Company's consolidated results were losses from discontinued operations, net of tax, of $4.3 million and $74.9 million for the three month periods ended March 31, 2008 and March 31, 2007, respectively.

Book Value Per Share

The Company's Book Value Per Share at March 31, 2008, was $0.80. Book Value Per Share is regularly used as a valuation metric by various equity analysts that follow the Company and may be deemed a non-GAAP financial measure pursuant to Regulation G. The Company computes Book Value Per Share by dividing total stockholders' equity by the total number of shares outstanding of the Company's Class A Common Stock.

Details of First Quarter 2008 Results of Operations

The Company's first quarter loss from continuing operations was composed of net interest income of $0.4 million, a realized gain on the sale of mortgage-backed securities ("MBS") of $0.3 million, a net increase in the fair value of MBS of $0.6 million, and $2.1 million in operating, general and administrative expenses. The Company's first quarter loss from discontinued operations included, among other items, a $1.0 million charge for loan losses and a loss on mortgage banking activities of $2.1 million, nearly all of which was attributable to a negative fair value adjustment to retained interests, trading.

REIT Taxable Income 

For the three month period ended March 31, 2008, the Company estimates its REIT taxable income at $0.5 million, before deducting the Company's REIT net operating loss carryover of approximately $7 million as of December 31, 2007. As of March 31, 2008, the Company's remaining REIT net operating loss carryover is estimated to be $6.5 million.

REIT taxable income is a term that describes the Company's operating results calculated in accordance with rules and regulations promulgated pursuant to the Internal Revenue Code. The Company's REIT taxable income is computed differently from net income as computed in accordance with generally accepted accounting principles ("GAAP net income"), as reported in the Company's consolidated financial statements. Depending on the number and size of the various items or transactions being accounted for differently, the differences between REIT taxable income and GAAP net income can be substantial and each item can affect several reporting periods. Generally, these items are timing or temporary differences between years; for example, an item that may be a deduction for GAAP net income in the current year may not be a deduction for REIT taxable income until a later year.

In order to maintain its qualification as a REIT, the Company is required (among other provisions) to annually distribute dividends to its stockholders in an amount at least equal to, generally, 90% of the Company's REIT taxable income, after deduction for the Company's REIT net operating loss carryover. Additionally, as a REIT, the Company may be subject to a federal excise tax if it distributes less than 85% of its REIT taxable income, after deduction for the Company's REIT net operating loss carryover, by the end of the calendar year. Accordingly, the Company's dividends are largely based on REIT taxable income, as determined for federal income tax purposes as opposed to its net income computed in accordance with GAAP (as reported in the Company's consolidated financial statements), and are paid if, when and as declared by the Company's Board of Directors.

Management Commentary

Commenting on the Company's first quarter results, Robert E. Cauley, President and Chief Executive Officer, said, "Our first quarter results, although still well below where we would like them, continue to show improvement over the prior year due to our exit from the mortgage origination business last summer. Importantly, we are currently cash flow positive and, based on our current projections and barring any further dislocations in the credit markets, we expect to be positive on both a GAAP and REIT taxable income basis by the fourth quarter of 2008."

The Company has scheduled an online Web simulcast and conference call to discuss these announcements that will begin at 8:45 a.m. E.T. tomorrow, Tuesday, May 13, 2008. An online replay will be available approximately two hours following the conclusion of the live broadcast and will continue for 48 hours. A link to these events will be available at the Company's website www.biminicapital.com. Those persons without Internet access may listen to the live call by dialing [phone] or [phone], confirmation code: 11113921.

About Bimini Capital Management

Bimini Capital Management, Inc. is a REIT that invests primarily in, but is not limited to, residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae). Its objective is to earn returns on the spread between the yield on its assets and its costs, including the interest expense on the funds it borrows.

Statements herein relating to matters that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and on management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in Bimini Capital Management, Inc.'s filings with the Securities and Exchange Commission, including Bimini Capital Management, Inc.'s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Bimini Capital Management, Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements.