OPX Opteum Inc.

Opteum Inc. (NYSE:OPX) (�Opteum� or the �Company�), a real estate investment trust (�REIT�), today announced that it has filed its Quarterly Report on Form�10-Q for the period ended June 30, 2007, with the Securities and Exchange Commission. The Company today also announced its second quarter results of operations and Book Value Per Share at June�30,�2007. Book Value Per Share The Company�s Book Value Per Share at June 30, 2007, was $1.17 compared with $4.80 as of March�31, 2007. Book Value Per Share is regularly used as a valuation metric by various equity analysts that follow the Company and may be deemed a non-GAAP financial measure pursuant to Regulation G. The Company computes Book Value Per Share by dividing total stockholders� equity by the total number of shares outstanding of the Company�s Class A Common Stock. Details of Second Quarter Results of Operations Consistent with the Company�s earlier guidance, the Company today reported a consolidated net loss of $162.5 million, or $(6.53) per Class A Common Share for the three month period ended June�30, 2007, compared to a consolidated net loss of $1.4 million, or $(0.06) per Class A Common Share, for the comparable prior year period. For the six month period ended June�30, 2007, the Company today reported a consolidated net loss of $240.5 million, or $(9.67) per Class A Common Share, compared to a consolidated net loss of $9.4 million, or $(0.38) per Class A Common Share, for the comparable prior year period. The Company�s second quarter results were significantly impacted by the discontinuation of operations at the Company�s majority-owned subsidiary, Orchid Island TRS, LLC (�OITRS�), a loss on the sale of mortgage-backed securities (�MBS�), an other-than-temporary impairment charge on MBS previously held in an unrealized loss position and a negative fair value adjustment to the Company�s retained interests in securitizations. The Company�s second quarter consolidated results include a loss from continuing operations of $82.0 million and losses from discontinued operations, net of tax, of $80.5�million. Second Quarter Results of Continuing Operations Included in the Company�s second quarter loss from continuing operations are net interest expense of $6.1 million, a realized loss on the sale of MBS of $18.6 million, an other-than-temporary impairment on MBS of $55.3 million and $2.1 million in operating, general and administrative expenses. In accordance with U.S. generally accepted accounting principles (�GAAP�), the Company previously reported the unrealized losses on MBS that were held as available for sale securities as accumulated other comprehensive loss (�AOCI�) on the Company�s consolidated balance sheet. During the second quarter, the Company sold MBS with a market value at the time of sale of approximately $782 million, resulting in the realized loss on the sale of MBS of $18.6 million. These sales were undertaken to preserve and protect the Company�s liquidity during a period of substantially increased market distress in the secondary market for mortgage loans and to give comfort to the Company�s lenders that the Company could meet its margin calls, all of which have been satisfied. Under GAAP, the $18.6 million realized loss on the sale of MBS is required to be reported in current period earnings and reduces AOCI. In addition, as a result of these sales, the Company is no longer able to assert its ability and intent to hold the remaining unsold MBS to maturity. Accordingly, GAAP requires the elimination of the AOCI associated with these remaining unsold assets, and this has resulted in the Company recognizing a $55.3 million other-than-temporary impairment charge to earnings during the second quarter. As a result of the recognition of this other-than-temporary impairment charge, the Company�s net interest margin on its MBS portfolio increased to a positive 86 basis points as of June�30, 2007. Further, the recognition of the other-than-temporary impairment charge in the Company�s second quarter results and the corresponding elimination of the AOCI balance did not result in any material incremental reduction in the Company�s consolidated stockholders� equity at June�30, 2007, because the AOCI balance was previously included as a deduction in arriving at consolidated stockholders� equity in prior periods. The Company�s consolidated stockholders� equity was $28.8 million at June 30, 2007. Second Quarter Results of Discontinued Operations Included in the Company�s second quarter losses from discontinued operations are $70.0�million in losses from discontinued operations, net of tax, and a $10.5 million loss on the sale and disposal of assets of discontinued operations, net of tax. The $70.0 million in losses from discontinued operations includes a $26.2 million negative fair value adjustment to the Company�s retained interests in securitizations, $17.6 million in losses from sales of mortgages held for sale and a net servicing loss of $6.0 million (inclusive of run-off). Management Commentary Commenting on the Company�s second quarter results, Jeffrey J. Zimmer, Chairman, President and Chief Executive Officer, said, �Our second quarter results announced today are in-line with the guidance that we provided late last week. Reiterating my earlier comments, we are optimistic about our prospects going forward for several reasons notwithstanding our recent past performance. First, a positive net interest margin on our MBS portfolio has been re-established. At June 30, our MBS portfolio�s net interest margin was a positive 86 basis points and the portfolio was valued at approximately $1.8 billion. Second, our MBS portfolio is 100% invested in Fannie Mae, Freddie Mac and Ginnie Mae agency MBS rather than private-label MBS. Third, because we own various interest-rate-sensitive assets, we stand to benefit if the economic data begin to show compelling evidence that inflation is under control and the Federal Reserve eases monetary policy. Fourth, by the end of the third quarter, we expect that we will have monetized substantially all of the value associated with our mortgage servicing rights portfolio, will have fully repaid the debt secured by this asset and will have further enhanced our liquidity. Fifth, we have over $100 million in trust preferred debt capital that does not mature until 2035. Sixth, and perhaps most importantly, the mortgage origination business albatross is no longer around our necks and we will no longer incur the substantial operating losses associated with this business that we have experienced over the course of the last several quarters. In summary, we believe that our future is bright.� The Company has scheduled an online Web simulcast and conference call to discuss these announcements that will begin at 5:30�p.m. E.T. today, Tuesday, August 14, 2007. An online replay will be available approximately two hours following the conclusion of the live broadcast and will continue for four days. A link to these events will be available at the Company's website www.opteum.com. Those persons without Internet access may listen to the live call by dialing (800) 240-8926 or (303) 205-0066, confirmation code: 11095359. About Opteum Opteum Inc. is a REIT that invests primarily in, but is not limited to, residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae). Its objective is to earn returns on the spread between the yield on its assets and its costs, including the interest expense on the funds it borrows. Statements herein relating to matters that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and on management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in Opteum Inc.'s filings with the Securities and Exchange Commission, including Opteum Inc.'s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Opteum Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements.