Thornburg Mortgage Announces One-Day Extension of Company's Override Agreement with Selected Repurchase Agreement Counterparties

Thornburg Mortgage, Inc. (NYSE: TMA) announced today that the company has extended by one day the original deadline of March 27, 2008 to 5:00 pm ET today, March 28, 2008, for the Override Agreement that the company had announced on March 19, 2008 whereby the company agreed to receive a minimum of net proceeds of $948 million in new capital as part of the 364-day agreement the company entered into with five of its remaining reverse repurchase agreement counterparties and their affiliates to provide approximately $5.8 billion of reverse repurchase agreement financing. These counterparties have agreed to both a contractual reduction of margin requirements for financing the company’s mortgage securities and a suspension of their rights to invoke further margin calls and related rights under their reverse repurchase agreements, global master securities lending agreements and auction swap agreements subject to certain covenants and conditions discussed in the company’s March 19, 2008, press release announcing the agreement. The statements in this press release that are not historical facts are forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are based on management’s current expectations and are subject to uncertainty and changes in circumstance due to a number of factors, including but not limited to: general economic conditions; ongoing volatility in the mortgage and mortgage-backed securities industry; the company’s ability to complete the capital raise required for the effectiveness of the override agreement; the company’s ability to meet the ongoing conditions of the override agreement; the company’s ability to obtain approval of use of the financial distress exemption from the New York Stock Exchange; the company’s ability to obtain shareholder approval of an increase in authorized shares; market prices for mortgage securities, interest rates, the availability of ARM securities and loans for acquisition and other risk factors discussed in the company's SEC reports, including its most recent annual report on Form 10-K/A and its Registration Statement on Form S-3. These forward-looking statements speak only as of the date on which they are made and except as required by law, the company does not intend to update such statements to reflect events or circumstances arising after such date.