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Chimera Investment Corporation To Restate GAAP Financial Statements For Periods From 2008 Through 2011

Chimera Investment Corporation (NYSE: CIM) today reported that each of the Company’s previously issued consolidated financial statements included in the Company’s Annual Reports on Form 10-K for the years ended December 31, 2010, 2009 and 2008, and interim consolidated financial statements included in the Company’s Quarterly Reports on Form 10-Q for the quarter ended September 30, 2008 and for all subsequent quarters through the quarter ended September 30, 2011 (collectively, the “Restatement Period”) need to be restated (the “Restatement”).

The Restatement is not expected to affect the Company’s previously reported GAAP or economic book values, actual cash flows, dividends and taxable income for any previous period.

As previously disclosed, the Company commenced an evaluation of its accounting policy related to the application of generally accepted accounting principles (“GAAP”) to its non-Agency residential mortgage-backed securities portfolio. The evaluation relates to the accounting for non-Agency residential mortgage-backed securities portfolio under Financial Accounting Standards Board Accounting Standards Codification (ASC) Subtopic 320-10, Investments – Debt and Equity Securities (“ASC 320-10”), ASC Subtopic 325-40 , Investments – Other – Beneficial Interests in Securitized Financial Assets (“ASC 325-40”), and ASC Subtopic 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”).

The Company has determined that it should have applied the guidance in ASC 325-40 as the basis for recognizing interest income and other than temporary impairment (“OTTI”) on some of its investments in non-Agency residential mortgage-backed securities that are not of high credit quality, and the guidance in ASC 310-30 as the basis for recognizing interest income and OTTI on other of its investments in non-Agency residential mortgage-backed securities with deteriorated credit quality.

The Company is still completing its evaluation. As a result of applying the correct GAAP guidance to its investments in non-Agency residential mortgage-backed securities, the Company’s previously reported GAAP earnings will be reduced and GAAP statements of financial condition will change. Set forth below are the Company’s estimates of the cumulative anticipated impact of the Restatement on its previously issued consolidated financial statements for the Restatement Period.

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