Exhibit (a)(1)(H)


                                  PRESS RELEASE



FOR IMMEDIATE RELEASE                                     CONTACT:  Kathy Fern
June 12, 2001                                                       804-217-5800


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


         Dynex  Capital,  Inc.  (NYSE:  DX)  announced  today the results of its
tender  offers to  purchase  for cash  shares of its Series A  Preferred  Stock,
Series B Preferred  Stock and Series C Preferred  Stock that  expired on Friday,
June 8,  2001.  Based on a  preliminary  count by the  depositary,  the  Company
expects  to  purchase  for cash  approximately  202,090  shares of its  Series A
Preferred Stock from shareholders at a price of $12.24 per share,  approximately
363,708 shares of its Series B Preferred  Stock from  shareholders at a price of
$12.50 per share,  and  approximately  254,803  shares of its Series C Preferred
Stock from its  shareholders at a price of $15.30 per share, all under the terms
of the tender offer.

         The tender offers  commenced on May 7, 2001 and the Company had offered
to purchase up to 500,000 of its Series A Preferred  Stock, up to 730,250 of its
Series B Preferred Stock, and up to 702,700 of its Series C Preferred Stock. Due
to the  tender  offers  for each  respective  series of  preferred  stock  being
under-subscribed,  the Company will purchase all of the shares validly  tendered
in the  tender  offer,  without  proration.  The  exact  number  of shares to be
purchased  will be  determined  upon final  review of the validity of all tender
offer documents received from holders.  Payment for shares properly tendered and
accepted will be made as soon as practicable.

         Based on the  number of  outstanding  shares  immediately  prior to the
commencement of the tender offers, the shares tendered  represent  approximately
15% of the Series A Preferred Stock outstanding, approximately 19% of the Series
B  Preferred  Stock  outstanding,  and  14%  of the  Series  C  Preferred  Stock
outstanding.

     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.

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