Annaly Capital Management, Inc

The Gift

Annaly Capital Management, Inc. (Annaly) owns, manages and finances a portfolio of real estate related investment securities, including mortgage pass-through certificates, collateralized mortgage obligations (CMOs), agency callable debentures, and other securities representing interests in the obligations backed by pools of mortgage loans. The Company's wholly owned subsidiaries offer real estate, asset management and other financial services. Fixed Income Discount Advisory Company (FIDAC) and Merganser Capital Management, Inc. (Merganser) manage a number of investment vehicles and separate accounts for which they earn fee income. The Company's subsidiary, RCap Securities Inc. (RCap) operates as a broker-dealer. In November 2010, the Company announced the formation of Shannon Funding LLC, a wholly owned subsidiary.

Annaly Capital Management, Inc. has listed in New York Stock Exchange since October 8, 1997. The company has  P/E Ratio 13.27, Indicated Annual Dividend 2.56, Beta Coefficient 0.35, Earnings per Share 1.35 and Shares Outstanding 621,878,000.

Annaly Capital Management, Inc. January 3,2011 announced that it intends to make a public offering of 75,000,000 shares of its common stock.

Annaly intends to grant the underwriters a thirty-day option to purchase up to an additional 11,250,000 shares of common stock solely to cover overallotments. Annaly expects to use the proceeds of this offering to purchase mortgage-backed securities for its investment portfolio and for general corporate purposes, which may include additional investments and repayment of short-term indebtedness.

Credit Suisse Securities (USA) LLC is acting as the lead book-running manager for the offering. Barclays Capital Inc., J.P. Morgan Securities LLC and RCap Securities, Inc. are acting as book-running managers.

Annaly has filed a shelf registration statement and prospectus with the Securities and Exchange Commission (SEC), and will file a prospectus supplement for the offering to which this communication relates. Before you invest, you should read the prospectus supplement and the accompanying prospectus and other documents Annaly has filed with the SEC for more complete information about Annaly and this offering.