EXHIBIT (a)(1)(G)

                                  PRESS RELEASE


FOR IMMEDIATE RELEASE                                      CONTACT:   Kathy Fern
September 6, 2001
804-217-5800


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


         Dynex Capital,  Inc. (NYSE:  DX) announced that it will commence tender
offers  today 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 212,817  shares of its Series A Preferred  Stock for a cash purchase price
of $16.80 per share,  up to 297,746 shares of its Series B Preferred Stock for a
cash purchase price of $17.15 per share,  and up to 304,757 shares of its Series
C Preferred Stock for a cash purchase price of $21.00 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
September 6, 2001.  It is expected that each of the tender offers will expire on
Thursday,  October 4, 2001 at 5:00 p.m.,  New York City time,  unless  extended.
Assuming it is fully subscribed,  this tender offer completes the current amount
available for  distribution to preferred  shareholders  allowed  pursuant to the
Supplemental  Indenture  dated March 30, 2001 to the Company's  July 2002 Senior
Notes.

         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.

         Separately,  the Company  announced  that Stephen J. Benedetti has been
elected to the position of executive vice president and chief financial officer.
Mr.  Benedetti had served as the Company's vice president,  treasurer and acting
chief financial officer.

         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.

                                      # # #