Exhibit (a)(1)(H)

                                  PRESS RELEASE


FOR IMMEDIATE RELEASE                                      CONTACT: Kathy Fern
October 15, 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 Wednesday,
October 10, 2001.  Based on a preliminary  count by the depositary,  the Company
expects  to  purchase  for cash  approximately  114,933  shares of its  Series A
Preferred Stock from shareholders at a price of $16.80 per share,  approximately
169,919 shares of its Series B Preferred  Stock from  shareholders at a price of
$17.15 per share,  and  approximately  201,665  shares of its Series C Preferred
Stock from its  shareholders at a price of $21.00 per share, all under the terms
of the tender offer.

         The tender  offers  commenced  on September 6, 2001 and the Company had
offered to purchase up to 212,817 shares of its Series A Preferred  Stock, up to
297,746 shares of its Series B Preferred  Stock, and up to 304,757 shares 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
10% of the Series A Preferred Stock outstanding, approximately 11% of the Series
B Preferred Stock  outstanding,  and approximately 13% 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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