Arlington Asset Investment Corp. Declares an Increased Dividend of $0.60 per Share for the Third Quarter of 2010
Reflects variable dividend policy
Equates to an annualized dividend yield of 10.5% based on today's closing stock price of $22.88
Repurchased 193,824 shares during the Third Quarter of 2010 at an average stock price of $19.84

ARLINGTON, Va., Sept. 20 /PRNewswire-FirstCall/ -- Arlington Asset Investment Corp. (NYSE: AI) (the "Company") today announced that its Board of Directors declared a dividend of $0.60 per share for the third quarter of 2010.  The dividend will be payable on October 29, 2010 to shareholders of record on September 30, 2010.  This dividend is a continuance of the Company's variable dividend policy.  The Company's Board of Directors will continue to assess appropriate dividend payouts and policy in future periods.

During the third quarter of 2010, the Company repurchased 193,824 shares of its Class A common stock at an average price of $19.84 per share.  The Company now has remaining authorization to repurchase up to 277,154 shares of its Class A common stock under its current repurchase program.  

"Consistent with the Company's variable dividend policy, today's $0.25 per share increase in the third quarter dividend reflects continued favorable performance in the Company's investment portfolio.  Given the Company's tax status as a C-corporation with approximately $800 million of combined net operating and capital loss carry-forwards, the Company's shareholders are able to simultaneously benefit from the tax efficient return of cash as well as potential growth in the Company's book value from portfolio income and potential realized investment gains in future periods. Taken together with the Company's share repurchases during the quarter, we believe this increased dividend demonstrates the Company's balanced ability to deliver to its shareholders an attractive and tax efficient total return from the combination of dividend yield and the potential for growth in book value for portfolio reinvestment, share repurchases and other initiatives," said J. Rock Tonkel, Jr., President and Chief Operating Officer.  

About the Company

Arlington Asset Investment Corp. (NYSE: AI) is a principal investment firm that invests primarily in mortgage-related assets. The Company is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.arlingtonasset.com.

Statements concerning future performance, returns, plans and steps to position the Company to realize value, and any other guidance on present or future periods, constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances. These factors include, but are not limited to, changes in interest rates, increased costs of borrowing, decreased interest spreads, changes in default rates, preservation of our net operating loss and net capital loss carry-forwards, impacts of regulatory changes and changes to Fannie Mae and Freddie Mac, availability of opportunities that meet or exceed our risk adjusted return expectations, ability and willingness to make future dividends, ability to generate sufficient cash through retained earnings to satisfy capital needs, ability to grow book value, changes in mortgage pre-payment speeds, risks associated with merchant banking investments, the realization of gains and losses on principal investments, continuation or cessation of share repurchases, changes in tax rates and laws, available technologies, competition for business and personnel, and general economic, political, regulatory and market conditions. These and other risks are described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q that are available from the Company and from the SEC and you should read and understand these risks when evaluating any forward-looking statement.

SOURCE Arlington Asset Investment Corp.

For further information: Media: +1-877-370-4413, ir@arlingtonasset.com; Investors: Kurt Harrington, +1-877-370-4413, ir@arlingtonasset.com