(a)(1)(I)


                                  PRESS RELEASE


FOR IMMEDIATE RELEASE                                     CONTACT:  Kathy Fern
February 21, 2003                                                   804-217-5800

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

         Dynex Capital,  Inc. (NYSE: DX) announced today the 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. The Company had offered to purchase
for cash up to 202,763  shares of its Series A  Preferred  Stock,  up to 272,977
shares of its Series B Preferred Stock, and up to 281,525 shares of its Series C
Preferred  Stock,  and  exchange  for Senior  Notes up to 289,662  shares of its
Series A Preferred  Stock,  up to 389,967 shares of its Series B Preferred Stock
and up to 402,178  shares of its Series C Preferred  Stock.  At its option,  the
Company can increase  the number of shares  subject to the Offer for each Series
of  Preferred  Stock by 2% of the  issued  and  outstanding  shares of each such
Series.

         The Offer has been oversubscribed.  In accordance with the terms of the
Offer,  the Company  will accept  tendered  shares on a pro-rata  basis from all
tendering  shareholders,  pursuant to the methodology required by Securities and
Exchange Commission rules. Of the 231,639 shares of its Series A Preferred Stock
tendered for cash,  the Company will  purchase  160,659  shares for cash; of the
346,764  shares of its Series B Preferred  Stock  tendered for cash, the Company
will purchase 221,348 shares for cash; and of the 242,435 shares of its Series C
Preferred  Stock tendered for cash the Company will purchase  195,939 shares for
cash. Of the 506,947 shares of its Series A Preferred  Stock tendered for Senior
Notes, the Company will exchange 309,503 shares for Senior Notes; of the 735,007
shares of its Series B Preferred  Stock  tendered for Senior Notes,  the Company
will exchange  417,541 shares for Senior Notes; and of the 637,536 shares of its
Series C Preferred  Stock  tendered for Senior  Notes the Company will  exchange
429,846 shares for Senior Notes. In cases where the  consideration for shares of
each  Series  tendered  is not  divisible,  in  the  aggregate,  by  the  $25.00
denomination of the Senior Notes,  shareholders will receive cash  consideration
for the amount in excess of the nearest $25.00 not to exceed $24.99. The Company
will also  purchase for cash 28,281  shares of the 72,613 shares of its Series A
Preferred  Stock  tendered for Senior Notes from  shareholders  that elected the
oversubscription allocation; 51,629 shares of the 138,121 shares of its Series B
Preferred  Stock  tendered for Senior Notes from  shareholders  that elected the
oversubscription  allocation;  and 72,836  shares of the  223,479  shares of its
Series C  Preferred  Stock  tendered  for Senior  Notes from  shareholders  that
elected the oversubscription allocation. The oversubscription allocation elected
by  shareholders  that  tendered  for cash will not be applied due to the Senior
Notes being fully subscribed.

         Payment for the accepted shares for cash and the issuance of the Senior
Notes is expected to be made on or about February 28, 2003. All shares  tendered
under the Offer and not  purchased  for cash or exchanged  for Senior Notes will
also be returned on such date.

         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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