Exhibit (a)(1)(H)


                                  PRESS RELEASE


FOR IMMEDIATE RELEASE                                      CONTACT: Kathy Fern
February 12, 2003                                                   804-217-5800


                               DYNEX CAPITAL, INC.
                  ANNOUNCES PRELIMINARY RESULTS OF TENDER OFFER
                        FOR SHARES OF ITS PREFERRED STOCK


     Dynex Capital,  Inc. (NYSE: DX) announced today the preliminary  results of
its cash  tender  offer and  exchange  offer of Senior  Notes for  shares of its
Series A Preferred Stock,  Series B Preferred Stock and Series C Preferred Stock
("Offer")  that expired on Tuesday,  February 11, 2003.  Based on a  preliminary
count by the  depositary,  615,044  shares of its Series A Preferred  Stock were
properly tendered and not withdrawn,  1,000,596 shares of its Series B Preferred
Stock were properly tendered and not withdrawn, and 847,648 shares of its Series
C Preferred Stock were properly tendered and not withdrawn by shareholders.  The
Offer commenced on January 8, 2003. The Company had offered to exchange for cash
and/or  Senior  Notes up to an  aggregate  of  502,273  shares  of its  Series A
Preferred  Stock, up to an aggregate of 676,202 shares of its Series B Preferred
Stock, and up to an aggregate of 697,376 shares of its Series C Preferred Stock.
The aggregate  number of shares of each series of preferred  stock  includes the
additional amount of shares the Company was allowed to exchange under the Offer.
Subject to final confirmation, the shares tendered in the Offer will be accepted
and  exchanged  on a pro rata  basis  pursuant  to the terms of the  Offer.  The
Company  will  issue the final  results  of the Offer  subsequent  to this final
confirmation and the prorating of each series of preferred stock.

         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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