CreXus Investment Corp. Announces Strategic Loan Production Alliance

CreXus Investment Corp. (NYSE: CXS) announced today the formation of an exclusive strategic alliance with a wholly-owned subsidiary of Bedrock Capital Associates LLC, an entity founded by Barry Gersten, formerly an Executive Vice President at Capmark Financial Group, Inc. Bedrock is a commercial real estate firm involved in investments, property management and advisory services. The purpose of the alliance is for Bedrock to source, exclusively for CreXus, combinations of first mortgages and mezzanine loans. CreXus continues to maintain extensive relationships with a wide range of sourcing channels for commercial real estate loans.

Kevin Riordan, Chief Executive Officer and President of CreXus, commented on the relationship. "CreXus continues to expand its footprint and pipeline of opportunities in commercial real estate finance. This alliance is intended to enable Crexus to broaden its origination capabilities and provide comprehensive one-stop financing solutions to prospective borrowers. Barry Gersten and the rest of his team at Bedrock have a wealth of experience and a terrific track record in the commercial real estate finance industry, and I believe that this exclusive arrangement will strengthen our investment capabilities.”

CreXus is a specialty finance company that acquires, manages and finances, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate debt, commercial mortgage-backed securities and other commercial and residential real estate-related assets. The Company’s principal business objective is to generate net income for distribution to investors from the spread between the yields on its investments and the cost of borrowing to finance their acquisition and secondarily to provide capital appreciation. The Company, a Maryland corporation that has elected to be taxed as a real estate investment trust ("REIT”), is externally managed by Fixed Income Discount Advisory Company.

This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which are based on various assumptions (some of which are beyond our control) may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "believe,” "expect,” "anticipate,” "estimate,” "plan,” "continue,” "intend,” "should,” "may,” "would,” "will” or similar expressions, or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, our business and strategy; our projected financial and operating results; our ability to obtain and maintain financing arrangements and the terms of those arrangements; financing and advance rates for our targeted assets; general volatility of the markets in which we acquire assets; the implementation, timing and impact of, and changes to, various government programs; our expected assets; changes in the value of our assets; market trends in our industry, interest rates, the debt securities markets or the general economy; rates of default or decreased recovery rates on our assets; our continuing or future relationships with third parties; prepayments of the mortgage and other loans underlying our mortgage-backed or other asset-backed securities; the degree to which our hedging strategies may or may not protect us from interest rate volatility; changes in governmental regulations, tax laws, accounting guidance, and rates and similar matters; our ability to maintain our qualification as a REIT for U.S. federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; the availability of opportunities in real estate-related and other securities; the availability of qualified personnel; estimates relating to our ability to make distributions to our stockholders in the future; our understanding of our competition; interest rate mismatches between our assets and our borrowings used to finance purchases of such assets; changes in interest rates and mortgage prepayment rates; the effects of interest rate caps on our adjustable-rate mortgage-backed securities; and our ability to integrate newly acquired assets into our existing portfolio. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically disclaim all obligations, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.