The Board of Directors of CYS Investments, Inc. (NYSE: CYS) (the "Company") today declared a quarterly dividend of $0.40 per share of common stock for the fourth quarter of 2012, as well as a special dividend of $0.52 per share of common stock. The Company is making the special dividend to distribute the remaining REIT taxable income earned during 2012. These dividends will be paid on December 28, 2012 to common stock stockholders of record on December 21, 2012. In accordance with the terms of the 7.75% Series A Cumulative Redeemable Preferred Stock (“Series A Preferred Stock”) of the Company, the Board of Directors of the Company has declared a Series A Preferred Stock cash dividend of $0.484375 per share of Series A Preferred Stock for the quarterly period that began on October 15, 2012, and ends on January 14, 2013. This dividend is payable on January 15, 2013 to Series A Preferred Stock stockholders of record as of January 1, 2013. About CYS Investments, Inc. CYS Investments, Inc. is a specialty finance company that invests on a leveraged basis in residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. The Company refers to these securities as Agency RMBS. The Company has elected to be taxed as a real estate investment trust for federal income tax purposes. Forward-Looking Statements Disclaimer This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the payment of the dividends. Forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us, including those described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, each of which has been filed with the Securities and Exchange Commission. If a change occurs, these forward-looking statements may vary materially from those expressed in this release. All forward-looking statements speak only as of the date on which they are made. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.