CYS Investments, Inc. (NYSE: CYS) (the "Company") today announced that it priced an underwritten public offering of 8,000,000 shares of its 7.50% Series B Cumulative Redeemable Preferred Stock (the "Series B Preferred Stock"), liquidation preference $25.00 per share, for gross proceeds of $200 million, before deducting underwriting discounts and estimated offering expenses.

The Company has granted the underwriters an option for 30 days to purchase up to an additional 1,200,000 shares of the Series B Preferred Stock to cover over-allotments. The offering is subject to customary closing conditions and is expected to close on April 30, 2013.

The Company intends to use the net proceeds of the offering to invest in Agency RMBS and for general corporate purposes.

Morgan Stanley & Co. LLC, Merrill Lynch, Pierce, Fenner and Smith Incorporated and UBS Securities LLC are acting as joint book-running managers for the offering. Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are acting as joint lead managers. Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are acting as co-managers. Mitsubishi UFJ Securities (USA), Inc. is acting as junior co-manager.

The offering is being made pursuant to the Company's existing shelf registration statement previously filed with the Securities and Exchange Commission that became effective upon filing. This press release is neither an offer to sell nor a solicitation of an offer to buy shares of Series B Preferred Stock. The offering of these securities will be made only by means of a prospectus and a related prospectus supplement, a copy of which may be obtained by contacting:

Morgan Stanley & Co. LLC
Attention: Prospectus Department
1585 Broadway
New York, NY 10036-6775
Email: prospectus@morganstanley.com
Telephone: (866) 718-1649

Merrill Lynch, Pierce, Fenner & Smith Incorporated
Attention: Prospectus Department
222 Broadway
New York, NY 10038
Email: dg.prospectus_requests@baml.com
Telephone: (800) 294-1322

UBS Securities LLC
Attention: Prospectus Department
299 Park Avenue
New York, NY 10171
Telephone: (877) 827-6444, ext. 561-3884

The prospectus supplement and the accompanying prospectus shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About CYS Investments, Inc.

CYS Investments, Inc. is a specialty finance company that primarily invests on a leveraged basis in residential mortgage pass-through securities for which the principal and interest payments are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. CYS Investments has elected to be taxed as a real estate investment trust for federal income tax purposes.

Forward-Looking Statements Disclaimer

This press release contains "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including with regard to the completion of the Company's offering of Series B Preferred Stock and the anticipated use of proceeds. Forward-looking statements typically are identified by use of the terms such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions. Forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. No assurance can be given that the offering discussed above will be consummated on the terms described or at all, or that the net proceeds of the offering will be used as indicated. Consummation and the terms of the offering, and the application of the net proceeds of the offering, are subject to numerous possible events, factors and conditions, many of which are beyond the control of the Company and not all of which are known to us, including, without limitation, market conditions and those described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which has been filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CYS Investments, Inc.
Richard E. Cleary, 617-639-0440
Chief Operating Officer