Thornburg Mortgage Delays Paying Interest Due on 8% Senior Notes Until After Resolution Is Reached With Counterparties to the Override Agreement

Thornburg Mortgage, Inc. announced that the company has not paid the interest payment due on November 15, 2008 on its 8% Senior Notes, because it currently does not have available funds to do so. The company is in active negotiations with the counterparties to the Override Agreement and expects to pay the $12.2 million interest payment once an amended and restated agreement has been reached with the counterparties to the Override Agreement and within the 30-day grace period under the indenture.

The company’s amended Exchange Offer and Consent Solicitation (the “Exchange Offer”) for all series of its outstanding Preferred Stock is currently scheduled to expire at 5 p.m., New York City time, on November 19, 2008. As of November 18, 2008, the company had received tenders for 72.2% of the outstanding shares of its Series C Preferred Stock, 79.2% of the outstanding shares of its Series D Preferred Stock, 83.2% of the outstanding shares of its Series E Preferred Stock and 67.4% of the outstanding shares of its Series F Preferred Stock. Holders of the Preferred Stock that have tendered their shares may withdraw their shares at any time prior to the company’s acceptance of the shares after the expiration of the Exchange Offer.

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.