|2013 FORM 1099||Box 1a Total||Box 1b Total||Box 3 Total|
|Declaration Date||Record Date||Payable Date||2013 Total Distribution Per Share||2013 Ordinary Dividends||2013 Qualified Dividends||2013 Nondividend Distributions|
|** Reflects the Silver Bay common stock distribution|
Two Harbors Investment Corp . (NYSE: TWO) today announced the tax treatment of common stock dividends declared in 2013. This information is provided to assist stockholders with tax reporting requirements related to dividend distribution of taxable income by Two Harbors Investment Corp. Stockholders should review the 2013 tax statements received from their brokerage firms or other institutions to ensure that the statements agree with the information provided below. Stockholders who held a share of Two Harbors common stock for the entire 2013 calendar year will report a nondividend distribution of $0.951268 per share, which is roughly equivalent to the value of the Silver Bay common stock distribution of $0.94720 per share. The entire $0.951268 per share nondividend distribution should be treated as a return of capital for those stockholders who held a share of Two Harbors common stock for the entire 2013 calendar year and who have a tax basis in such share of $0.951268 or greater. As each stockholder’s tax situation may be different, stockholders are encouraged to consult with their own professional tax advisor with respect to their individual tax consequences. Tax Treatment of the Distributions The Federal income tax classification of the 2013 distributions, as expected to be reported on Form 1099-DIV, is set forth in the following table. No portion of the company’s 2013 dividend distributions is expected to consist of unrelated business taxable income (UBTI), which is subject to special tax reporting for certain tax exempt investors.
Silver Bay Stock Distribution On March 18, 2013, the company’s board of directors declared a special dividend pursuant to which the company distributed, on a pro rata basis, 17,824,647 shares of common stock it owned of Silver Bay Realty Trust Corp. (NYSE: SBY) to the Two Harbors stockholders of record at the close of business on April 2, 2013.