Press Release

BETHESDA, Md., March 23 /PRNewswire-FirstCall/ -- American Capital Agency Corp. (Nasdaq: AGNC) (the "Company") announced today that its Board of Directors has declared a cash dividend of $0.85 per share for the first quarter of 2009. The dividend is payable on April 27, 2009 to common stockholders of record as of April 2, 2009 and has an ex-dividend date of March 31, 2009.

"I am pleased with the progress we've made since early February repositioning our investment portfolio," commented Gary Kain, Chief Investment Officer of AGNC. "We've been able to take advantage of favorable market conditions to diversify away from 100% fixed rate MBS and construct a portfolio that we believe will better position us for today's dynamic market environment. As part of the portfolio adjustments, we were able to generate modest realized gains in the quarter to date. Furthermore, since the beginning of the year, short term funding costs for agency MBS have declined considerably, positively impacting our net interest spread. We believe the actions taken in the quarter fortify our commitment to balance the protection of book value while generating attractive risk-adjusted returns for our stockholders."

ABOUT AGNC

AGNC is a REIT formed in 2008 to invest exclusively in agency pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity. The Company is externally managed and advised by an affiliate of American Capital, Ltd. For further information, please refer to www.AGNC.com.

ABOUT AMERICAN CAPITAL

American Capital, Ltd. (Nasdaq: ACAS) is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $14 billion in capital resources under management and ten offices in the U.S., Europe and Asia. For further information, please refer to www.AmericanCapital.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to various factors and uncertainties in predicting future results and conditions. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include changes in interest rates, changes in the yield curve, changes in prepayment rates, the availability and terms of financing, changes in the market value of our assets, general economic conditions, market conditions, conditions in the market for agency securities, and legislative and regulatory changes that could adversely affect the business of the Company. Persons considering an investment in the Company should consider the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, as well as the investment objectives, charges and expenses of the Company carefully before investing. Such information and other information about the Company is available in the Company's Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission ("SEC") on February 17, 2009 and in subsequent periodic reports filed with the SEC. Copies are available on the SEC's website, www.sec.gov. The Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement for any reason, except as otherwise required by law.

CONTACT:
Investors - (301) 968-9300
Media - (301) 968-9400

SOURCE: American Capital Agency Corp.

Web Site:
http://www.AGNC.com