The over-allotment option was granted in connection with the public offering of 4,200,000 shares of common stock priced on Feb. 12, 2002. The sale of these additional shares will generate approximately $5.2 million in net proceeds to the company. The company intends to use the net proceeds from the sale of these shares to acquire mortgage-related assets consistent with its investment policy.

The underwriters were led by Friedman, Billings, Ramsey & Co., with Advest and Wedbush Morgan Securities acting as co-managers.

Anworth Mortgage Asset Corp. 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. It generates income for distribution to shareholders based on the difference between the yield on its mortgage assets and the cost of its borrowings.