PRESS RELEASE

Exhibit (a)(1)(H)

PRESS RELEASE


FOR IMMEDIATE RELEASE CONTACT: Kathy Fern
September 24, 2001 804-217-5800


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



Dynex Capital, Inc. (NYSE: DX) announced that it will continue its
tender offers to purchase for cash, shares of its Series A Preferred Stock,
Series B Preferred Stock and Series C Preferred Stock and waive its right to
terminate the offers as a result of the terrorist attacks in New York and
Washington D.C. on September 11, 2001, the subsequent closing of the stock
markets and significant decline in overall market stock prices. As provided in
the Tender Offer Statement, the events of September 11, 2001 triggered the right
by Dynex to terminate the offers. Dynex has decided to waive such right as it
applies to those events; however, Dynex could terminate the offer due to other
reasons, as described in the Tender Offer Statement. Under the offers, the
Company will purchase up to 212,817 of its Series A Preferred Stock for a cash
purchase price of $16.80 per share, up to 297,746 of its Series B Preferred
Stock for a cash purchase price of $17.15 per share, and up to 304,758 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 distributed on or about September 7,
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.

The Company also announced that ACA Financial Guaranty Corporation
(ACA) has filed a motion to enjoin the Company from completing the tender offer,
among other things. The court has not yet set a date to hear the motion.

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.

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 has been 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, as
amended, (including the Offer to Purchase, the related Letters of Transmittal
and all other offer documents filed with the Commission) is also available for
no charge at the Securities and Exchange Commission's web site at www.sec.gov.
The Tender Offer Statement, as amended, (including an Offer to Purchase, the
related Letters of Transmittal and other offer documents) contains 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.

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