Annaly Mortgage Management, Inc.
Ticker:NLY 1500 Harbor Boulevard
Exchange:New York Stock Exchange Weehawkin, NJ 07087
Industry:Financial (SIC Code 6798)

Offering Information
Type of Shares:Common Shares Filing Date:8/5/97
U.S. Shares:8,514,000 Offer Date:10/7/97
Non-U.S. Shares:0 Filing Range:$11.50 - $12.50
Primary Shares:8,514,000 Offer Price:$12.00
Secondary Shares:0 Gross Spread:$0.84
Offering Amount: $102,168,000 Selling:$0.50
Expenses: - Reallowance:$0.10
Shares Out After:10,017,800

Primary Underwriting Group
ManagerTierPhone
Friedman, Billings, Ramsey & Co., Inc.Lead Manager (703) 312-9571
Sutro & Company Inc.Co-manager (415) 445-8323
Tucker Anthony IncorporatedCo-manager (800) 453-8205

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Morgan, Lewis & Bockius
Bank's Law Firm: Andrews & Kurth
Auditor: Deloitte & Touche
Registrar/Transfer Agent: ChaseMellon Shareholder Services, L.L.C.

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
5 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
6/30/97 6/30/97
Revenue:$6.51Assets:$398.24
Net Income:$1.34Curr Assets:
EPS:$0.36Liabilities:$365.42
Prior EPS:$2.21Curr Liabilities:
Cash Flow/Oper:$359.69Equity:$32.82
Cash Flow/Fin:-$361.89Cash:$28.00
Cash Flow/Inv:-$361.89

Business Description
The company is a real estate investment trust, REIT. The company specializes in investing in mortgage-backed securities, inlcuding mortgage pass-through certificates, collateralized mortgage obligations and other readily financed securities. The Company's principal business objective is to generate net income for distribution to stockholders from the spread between the interest income on its Mortgage-Backed Securities and the costs of borrowing to finance its acquisition of Mortgage-Backed Securities. The Company will elect to be taxed as a "real estate investment trust" ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code"). Therefore, substantially all of its assets consist (and will consist) of Qualified REIT real Estate Assets (of the type described in Section 856(c)(6)(B) of the Code). The Company is self-advised and self-managed.

Business Plan
The Company's principal business objective is to generate income for distribution to its stockholders, primarily from the net cash flows on its Mortgage-Backed Securities qualifying as Qualified REIT Real Estate Assets. The Company's net cash flows result primarily from the difference between (i) the interest income on its Mortgage-Backed Security investments and (ii) the borrowing and financing costs of the Mortgage-Backed Securities.

Use of Proceeds
The proceeds from the proposed offering will be used to purchase additional mortgage backed securities.

Principal and Selling Shareholders
Name of Shareholder% Owned
Before
% Owned
After
Kramer Spellman, L.P.9.30%
Eaton Vance Total Return Portfolio9.30%
Bay Pond Partners, L.P.8.10%
Loews Corporation7.20%
Frorer Partners, L.P.6.60%
Zweig-DiMenna Associates LLC5.40%
Boston Provident Partners, L.P.
Note: Represents ownership of 5% or more prior to the offering.
Executive Officers and Directors
Officer NameTitleAge
Michael A.J. FarrellChairman of the Board, Chief Executive Officer and Director
Kathryn F. FaganChief Financial Officer and Treasurer
Timothy J. GubaPresident, Chief Operating Officer and Director
Jennifer A. StephensSecretary
Wellington J. St. ClaireVice Chairman of the Board and Director

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