As a result of the completion of the Exchange Offer and Consent Solicitation, the preferred stock no longer meets the continued listing criteria under the New York Stock Exchange (the "NYSE") Listing Company Manual. The NYSE issued a press release on November 20, 2008 announcing that trading in all series of preferred stock would be suspended on November 20, 2008 and that suspension and delisting procedures would begin promptly. The company does not intend to list the preferred stock on any other national securities exchange. The remaining preferred stock may be traded on over-the-counter (OTC) markets.

Thornburg Mortgage is a leading single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable-rate mortgages.

SOURCE: Thornburg Mortgage, Inc.

Thornburg Mortgage, Inc., Santa Fe 
Investor Relations: 
505-989-1900 
or 
Media: 
Suzanne O'Leary Lopez 
505-467-5166 
ir@thornburgmortgage.com

Fitch has maintained the following ratings:

--Senior notes remain at 'C/RR6';

--Senior secured subordinated notes remain at 'C/RR6';

--Subordinated notes remain at 'C/RR6';

--Preferred stock remains at 'C/RR6'.

The IDR downgrade is based on Thornburg failing to make an interest payment on its 8% senior notes. The RR6 recovery ratings for the rated securities are due to Fitch's continued belief that recoveries in the event of default would be poor.

Based in Santa Fe, New Mexico, Thornburg Mortgage, Inc. is a lender to the single-family residential mortgage housing market and is focused principally on the jumbo segment. Thornburg originates, acquires and retains investments in adjustable-rate mortgage (ARM) assets. Thornburg's ARM assets are comprised of Purchased ARM Assets and ARM Loans. All of Thornburg's ARM assets are either Traditional ARMs, which includes Pay Option ARMs or Hybrid ARMs. For tax purposes, Thornburg is organized as a real estate investment trust (REIT) and is managed externally by Thornburg Mortgage Advisory Corporation.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

SOURCE: Fitch Ratings

Fitch Ratings, New York 
Steven Marks, 212-908-9161 
Taqim Spradley, 212-908-0291 
or 
Media Relations: 
Sandro Scenga, 212-908-0278 
Email: sandro.scenga@fitchratings.com

The Exchange Offer is being made to holders of Preferred Stock in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended, afforded by Section 3(a)(9) thereof. Investor inquiries about the Exchange Offer should be directed to the company at 866-222-2093 (toll free). Holders of the Preferred Stock are urged to read the amended and restated Offering Circular filed with the SEC on November 3, 2008. Requests for copies of the Offering Circular, all supplements thereto and related documents may be directed to Georgeson Inc., the information agent for the Exchange Offer, at 866-399-8748 (toll free). The Offering Circular, all supplements thereto and other information regarding the Exchange Offer may also be obtained through the SEC's Web site at www.sec.gov and the company's Web site at www.thornburgmortgagetender.com.

This press release does not constitute an offer to purchase or a solicitation of acceptance of the offer, which may be made only pursuant to the terms of the Offering Circular and the related materials.

Thornburg Mortgage is a leading single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable-rate mortgages.

This press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are based on current expectations, estimates and projections, and are not guarantees of future performance, events or results. Actual results and developments could differ materially from those expressed in or contemplated by the forward-looking statements due to a number of factors, including but not limited to: the ongoing impact of the March 31, 2008 financing transaction; the company's ability to meet the ongoing conditions of the Override Agreement and successfully conclude negotiations with the parties thereto with respect to an amended and restated agreement; general economic conditions; the company's ability to meet its interest payment obligations under its outstanding debt securities and other payment obligations, including the interest payment on its 8% Senior Notes that was due on November 17, 2008; ongoing volatility in the mortgage and mortgage-backed securities industry; the company's ability to complete the Exchange Offer and terminate the PPA; the company's ability to raise additional capital; the company's ability to retain or sell additional assets; further downgrades on our mortgage securities portfolio, delinquency rates for loans, changes in interest rates and other risk factors discussed in the company's SEC reports, including its most recent quarterly report on Form 10-Q, annual report on Form 10-K/A, its current reports on Form 8-K, its Proxy Statement for its Annual Meeting held on June 12, 2008, its Offering Circular, as amended to date, 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.

SOURCE: Thornburg Mortgage, Inc.

Thornburg Mortgage, Inc., Santa Fe 
Investor Relations 
505-989-1900 
ir@thornburgmortgage.com 
or 
Media contact 
Suzanne O'Leary Lopez 
505-467-5166

The U.S. teleconference dial-in number is (800) 762-6085 and the international dial-in number is (480) 629-9025. A replay of the call will be available beginning at 1:30 p.m. EST on November 12, 2008 and ending at 1:59 p.m. EST on December 12, 2008. The replay dial-in number is (800) 475-6701 in the U.S. and (320) 365-3844 internationally. The access code for both replay numbers is 968830.

The conference call will also be archived on the company's web site throughout the fourth quarter of 2008. The conference call will also be web cast live through a link at: http://www.talkpoint.com/viewer/starthere.asp?Pres=124117

Thornburg Mortgage is a leading single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable-rate mortgages.

SOURCE: Thornburg Mortgage, Inc.

Thornburg Mortgage, Inc., Santa Fe 
Investor Relations: 
505-989-1900 
or 
Media contact: 
Suzanne O'Leary Lopez 
505-467-5166 
ir@thornburgmortgage.com