AGNC Declares $1.00 Third Quarter Dividend

BETHESDA, Md., Sept. 19  /PRNewswire-FirstCall/ -- American Capital Agency Corp. (NASDAQ:AGNC) (the "Company") announced today that its Board of Directors has declared a cash dividend of $1.00 per share for the third quarter 2008.  The dividend is payable on October 10, 2008 to common shareholders of record as of September 29, 2008, with an ex-dividend date of September 25, 2008.

Malon Wilkus, Chairman, President and CEO commented, "The third quarter of 2008 marks an important milestone for AGNC as it represents the Company's first full quarter of operations since its IPO and thus, its first opportunity to demonstrate the full strength of its business model.  Despite the current market volatility, we believe that AGNC should be able to generate attractive dividend yields while prudently managing leverage."

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 http://www.agnc.com/.

ABOUT AMERICAN CAPITAL

American Capital, Ltd. (NASDAQ:ACAS) with $20 billion in capital resources under management(1), is the only private equity fund and the largest alternative asset management company in the S&P 500. American Capital, both directly and through its global asset management business, originates, underwrites and manages investments in private equity, leveraged finance, real estate and structured products. American Capital was founded in 1986 and currently has 12 offices in the U.S. and Europe.  For further information, please refer to http://www.acas.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 Registration Statement on Form S-11, as amended, filed with the Securities and Exchange Commission ("SEC") on May 14, 2008 and in subsequent periodic reports filed with the SEC.  Copies are available on the SEC's website, http://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.

(1) Capital resources under management is internally and externally managed assets and available capital resources as of June 30, 2008. 

DATASOURCE: American Capital Agency Corp.



CONTACT:  John Erickson, Chief Financial Officer, Tom McHale, Senior Vice

President, Finance, or Justin Cressall, Vice President, Equity Capital

Markets, all of American Capital, [phone], or fax, [phone]



Web site:  http://www.agnc.com/

http://www.acas.com/ 

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