PRESS RELEASE

FROM:

                                    NYSE: NLY
                        ANNALY MORTGAGE MANGAGEMENT, INC.
                         12 East 41st Street, Suite 700
                               New York, NY 10017
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FOR FURTHER INFORMATION

Kathryn F. Fagan, Treasurer & CFO
(212) 696-0100  (888) 8Annaly
www.annaly.com

FOR IMMEDIATE RELEASE

September 21, 2001

         ANNALY MORTGAGE MANAGEMENT, INC. ANNOUNCES 3RD QUARTER DIVIDEND

         NEW YORK, NEW YORK- September 21, 2001 - The Board of Directors of
Annaly Mortgage Management, Inc. (NYSE: NLY) declared the third quarter 2001
common stock dividend of $0.45 per share. This dividend is payable October 30,
2001 to common shareholders of record on October 5, 2001.

         Dividends may be reinvested through Annaly's Dividend Reinvestment
Plan. Plan information may be obtained from the Plan Administrator, ChaseMellon
Shareholder Services at 1-800-842-7629, at www.annaly.com, or by contacting the
Company.

         Annaly Mortgage Management, Inc., a Maryland corporation, owns and
manages a portfolio of mortgage-backed securities. The Company's principal
business objective is to generate net income for distribution to stockholders
from the spread between the interest income on its assets and the costs of
borrowing to finance its acquisition of these assets. The Company has elected to
be taxed as a real estate investment trust (REIT).

         This news release, and our public documents to which we refer, contain
or incorporate by reference certain forward-looking statements. When used,
statements which are not historical in nature, including the words "anticipate,"
"estimate," "should," "expect," "believe," "intend," and similar expressions are
intended to identify forward-looking statements. These forward-looking
statements are subject to certain risks and uncertainties, including, among
other things: business conditions and the general economy, especially as they
affect interest rates; the federal, state, and local regulatory environment; an
increase in the prepayment rate on the loans that back our mortgage-backed
securities; the inability to borrow at favorable rates; and the inability to
maintain our REIT qualification.

         Other risks, uncertainties, and factors that could cause actual results
to differ materially from those projected are detailed from time to time in
reports filed by us with the Securities and Exchange Commission, including Forms
10-Q and 10-K. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.