Saxon Capital, Inc. Announces Pricing of Private Offering of $150 Million Senior Notes

Saxon Capital, Inc. ("Saxon" or the "Company") (NYSE:
SAX), a residential mortgage lending and servicing real estate
investment trust (REIT), today announced that it has priced its
previously announced private offering of $150 million of senior notes
due 2014. The notes will bear interest at a fixed rate of 12% per
annum. The closing of the private offering is expected to occur on May
4, 2006 and is subject to the satisfaction of closing conditions as
provided in the transaction documents.
   As previously announced, the Company intends to use the net
proceeds from the proposed offering for general corporate purposes,
principally the acquisition of additional third-party mortgage
servicing rights and whole loans in bulk. Pending application of the
net proceeds of this offering as described above, the Company intends
to use the net proceeds to temporarily reduce outstanding debt under
one or more of its committed facilities.
   The notes have not been registered under the Securities Act, or
the securities laws of any state or other jurisdiction, and may not be
offered or sold in the United States without registration or an
applicable exemption from the Securities Act. This announcement is
neither an offer to sell nor a solicitation of an offer to buy the new
senior notes.

   About Saxon

   Saxon is a residential mortgage lender and servicer that manages a
portfolio of mortgage assets. Saxon purchases, securitizes, and
services real property secured mortgages and elects to be treated as a
real estate investment trust (REIT) for federal tax purposes. The
Company is headquartered in Glen Allen, Virginia and has additional
primary facilities in Fort Worth, Texas and Foothill Ranch,
California.
   Saxon's mortgage loan production subsidiary, Saxon Mortgage, Inc.,
originates and purchases loans through indirect and direct lending
channels using a network of brokers, correspondents, and its retail
lending centers. As of December 31, 2005, Saxon's servicing
subsidiary, Saxon Mortgage Services, Inc., serviced a mortgage loan
portfolio of $24.8 billion. For more information, visit
www.saxonmortgage.com.

   Information Regarding Forward Looking Statements

   Statements in this news release other than statements of
historical fact, are "forward-looking statements" that are based on
current expectations and assumptions. These expectations and
assumptions are subject to risks and uncertainty, which could affect
Saxon's future plans. Saxon's actual results and the timing and
occurrence of expected events could differ materially from its plans
and expectations due to a number of factors, such as (i) changes in
overall economic conditions and interest rates, (ii) Saxon's ability
to successfully implement its growth strategy, (iii) Saxon's ability
to sustain loan origination growth at levels sufficient to absorb
costs of production and operational costs, (iv) continued availability
of credit facilities and access to the securitization markets or other
funding sources, (v) deterioration in the credit quality of Saxon's
loan portfolio, (vi) lack of access to the capital markets for
additional funding, (vii) challenges in successfully expanding Saxon's
servicing platform and technological capabilities, (viii) Saxon's
ability to remain in compliance with federal tax requirements
applicable to REITs, (ix) Saxon's ability and the ability of its
subsidiaries to operate effectively within the limitations imposed on
REITs by federal tax rules, (x) changes in federal income tax laws and
regulations applicable to REITs, (xi) unfavorable changes in capital
market conditions, (xii) future litigation developments, (xiii)
competitive conditions applicable to Saxon's industry, and (xiv)
changes in the applicable legal and regulatory environment. You should
also be aware that all information in this news release is as of April
27, 2006. Saxon undertakes no duty to update any forward-looking
statement to conform the statement to actual results or changes in the
Company's expectations.