EX-20

                                                               Exhibit (a)(1)(G)

                                  PRESS RELEASE


FOR IMMEDIATE RELEASE                                      CONTACT:   Kathy Fern
April 30, 2001                                                      804-217-5800


                               DYNEX CAPITAL, INC.
                          ANNOUNCES CASH TENDER OFFERS
                        FOR SHARES OF ITS PREFERRED STOCK



     Dynex Capital, Inc. (NYSE: DX) today announced that it will commence tender
offers to purchase  for cash shares of its Series A  Preferred  Stock,  Series B
Preferred  Stock and Series C Preferred  Stock.  The Company will purchase up to
500,000 of its Series A Preferred  Stock for a cash purchase price of $12.24 per
share,  up to 730,000 of its Series B Preferred  Stock for a cash purchase price
of $12.50 per share,  and up to  702,700 of its Series C  Preferred  Stock for a
cash purchase price of $15.30 per share.

     The  three  tender  offers  extend  to all  outstanding  shares of Series A
Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, and will
only be made pursuant to offering materials to be distributed on or about May 7,
2001. It is expected that each of the tender offers will expire on Friday,  June
8, 2001 at 5:00 p.m., New York City time, unless extended.

     In commenting on the tender offers, Thomas H. Potts, President, said, "Four
weeks ago we stated  that the Board  continued  to evaluate  various  courses of
action to improve  shareholder  value and to provide  liquidity to the Company's
stock.  The Board  believes  these tender offers  represent  the best  immediate
course of action and provide  holders of the  preferred  stock  desiring to sell
their shares the  opportunity to sell all or a part of their holdings at a price
that  represents  a premium to the current  market price and likely will improve
shareholder  value over the longer  term for those  continuing  to own an equity
interest in Dynex."

     The Company's  Board of Directors is not making any  recommendation  to its
preferred  shareholders  as to whether or not they should  tender any  preferred
shares pursuant to the offers.  The Company's  directors and executive  officers
have agreed not to participate in the tender offers.

     This press release is for information  purposes only and is not an offer to
buy or the solicitation of an offer to sell any shares of the Series A Preferred
Stock,  Series B  Preferred  Stock or Series C  Preferred  Stock of  Dynex.  The
solicitation  of offers to buy  shares of  Series A  Preferred  Stock,  Series B
Preferred  Stock or Series C Preferred Stock of Dynex will only be made pursuant
to the Tender  Offer  Statement  (including  an Offer to  Purchase,  the related
Letters of Transmittal  and other offer  documents),  which will be delivered to
all of the holders of the Series A Preferred Stock, Series B Preferred Stock and
Series C Preferred  Stock,  at no expense to them.  The Tender  Offer  Statement
(including the Offer to Purchase,  the related  Letters of  Transmittal  and all
other offer documents when filed with the Commission) will be also available for
no charge at the Securities and Exchange  Commission's  web site at www.sec.gov.
The Tender Offer Statement (including an Offer to Purchase,  the related Letters
of Transmittal  and other offer  documents) will contain  important  information
that should be read carefully before any decision is made with respect to any of
the tender offers.

     Dynex  Capital,  Inc. is a  financial  services  company  that elects to be
treated  as a real  estate  investment  trust  (REIT)  for  federal  income  tax
purposes.

     Note:  This  document  contains  "forward-looking   statements"(within  the
meaning  of the  Private  Securities  Litigation  Act of 1995)  that  inherently
involve  risks and  uncertainties.  The  Company's  actual  results could differ
materially  from those  anticipated  in these  forward-looking  statements  as a
result of unforeseen  external  factors.  As discussed in the Company's  filings
with the SEC,  these  factors may  include,  but are not limited to,  changes in
general  economic   conditions,   disruptions  in  the  capital   markets,   the
availability  of funds  from the  Company's  lenders to  finance  future  loans,
fluctuations in interest rates, increases in costs and other general competitive
factors.

                                     # # #

SC 13E1

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20459

                                   SCHEDULE TO

                             TENDER OFFER STATEMENT
                    UNDER SECTION 14(d)(1) OR 13(e)(1) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                               DYNEX CAPITAL, INC.
                       (NAME OF SUBJECT COMPANY (ISSUER))

                          DYNEX CAPITAL, INC. (OFFEROR)
 (NAME OF FILING PERSON (IDENTIFYING STATUS AS OFFEROR, ISSUER OR OTHER PERSON))

               SERIES A PREFERRED STOCK, PAR VALUE $0.01 PER SHARE
               SERIES B PREFERRED STOCK, PAR VALUE $0.01 PER SHARE
               SERIES C PREFERRED STOCK, PAR VALUE $0.01 PER SHARE
                         (TITLE OF CLASS OF SECURITIES)

                                  (26817Q 20 9)
                   (CUSIP NUMBER OF SERIES A PREFERRED STOCK)
                                  (26817Q 30 8)
                   (CUSIP NUMBER OF SERIES B PREFERRED STOCK)
                                  (26817Q 40 7)
                   (CUSIP NUMBER OF SERIES C PREFERRED STOCK)

                           THOMAS H. POTTS, PRESIDENT
                               DYNEX CAPITAL, INC.
                            4551 COX ROAD, SUITE 300
                           GLEN ALLEN, VIRGINIA 23060
                                 (804) 217-5800

           (NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED TO
          RECEIVE NOTICES AND COMMUNICATIONS ON BEHALF OF FILING PERSON
                              FILING THE STATEMENT)

                                    COPY TO:
                          ELIZABETH R. HUGHES, ESQUIRE
                         VENABLE, BAETJER & HOWARD, LLP
                         2010 CORPORATE RIDGE, SUITE 400
                                McLEAN, VA 22102
                                 (703) 760-1649

                            CALCULATION OF FILING FEE

TRANSACTION VALUATION:                      AMOUNT OF FILING FEE:

[ ] Check box if any part of the fee is offset as provided by Rule
    0-11(a)(2) and identify the filing with which the offsetting fee was
    previously paid. Identify the previous filing by registration statement
    number, or the form or schedule and the date of its filing.

Amount Previously Paid:  Not applicable Form or Registration No.: Not applicable
Filing Party:  Not applicable                              Filed: Not applicable

[ X ] Check the box if the filing relates solely to preliminary communications
      made before the commencement of a tender offer.

Check the appropriate boxes below to designate any transactions to which the
statement relates:

         [   ] third-party tender offer subject to Rule14d-1.

         [ X ] issuer tender offer subject to Rule 13e-4.

         [   ] going-private transaction subject to Rule13e-3.

         [   ] amendment to Schedule 13D under Rule 13d-2.

Check the following box if the filing is a final amendment reporting the results
of the tender offer: [   ]



ITEM 12. EXHIBITS.

EXHIBIT
NUMBER          DESCRIPTION

(a)(1)(G)       Press Release.

                                   SIGNATURE

         After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

                                    DYNEX CAPITAL, INC.



                                    By:  /s/ Thomas H. Potts
                                        ----------------------------------------
                                        .........Thomas H. Potts
                                        .........President
Dated: April 30, 2001

                               INDEX TO EXHIBITS

EXHIBIT
NUMBER            DESCRIPTION



(a)(1)(G)         Press Release.