Exhibit 99.1

Cypress Sharpridge Investments, Inc. Announces Second Quarter 2011 Financial Results

For Immediate Release

NEW YORK, NY – July 20, 2011 – Cypress Sharpridge Investments, Inc. (NYSE: CYS) (“CYS” or the “Company”) today announced financial results for the quarter ended June 30, 2011.

Second Quarter 2011 Highlights

Internalization

On July 20, 2011, the Company issued a press release announcing it has entered into a non-binding term sheet with Sharpridge Capital Management, L.P. (“Sharpridge”), a Delaware limited partnership, and a sub-advisor to Cypress Sharpridge Advisors LLC, the Company’s manager, that includes the material terms and conditions pursuant to which the Company intends to complete an internalization of its management (the “Internalization”). The term sheet provides that the Company intends to (i) acquire all of the assets that Sharpridge uses to oversee the Company’s day-to-day operations and actively manage the Company’s investment portfolio for a cash purchase price of $750,000, and (ii) offer employment to all of the 13 current employees of Sharpridge, including those individuals who are the current executive officers of the Company. The Company expects to enter into employment agreements with its executive officers and to establish a compensation program for its employees that the compensation committee of the Company’s board of directors has diligently created based on consultation with a third-party compensation consultant. In connection with the completion of the Internalization, the management agreement by and between the Company and its manager, and other ancillary agreements related thereto, will be terminated without the payment of any termination fee. The completion of the transactions contemplated by the term sheet is scheduled to take place effective as of September 1, 2011, and is subject to negotiation, execution and delivery of mutually acceptable agreements, including an asset purchase agreement and employment agreements for the Company’s executive officers.

Since the completion of the Company’s initial public offering, the Company’s board of directors has periodically reviewed and analyzed the potential internalization of the Company’s management structure. In connection with this review and analysis of an internalization of management, the board of directors has received a significant amount of information, consulted with management and various legal, accounting, tax and compensation advisors, and considered the Company’s short-term and long-term interests. Based on the terms and conditions set forth in the term sheet, the board of directors believes that an internalization is in the best interests of the Company and its stockholders primarily because it will achieve economies of scale for operating expenses as the Company continues to increase its capital, more effectively address management and administrative needs, and further align the interests of those individuals responsible for executing the Company’s strategy with the interests of the Company’s stockholders over the long-term.

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Second Quarter 2011 Results

The Company had net income of $99.4 million during the second quarter of 2011, or $1.20 per diluted share, compared to net income of $52.1 million, or $0.74 per diluted share, in the first quarter of 2011. During the second quarter of 2011, the Company had Core Earnings of $41.5 million, or $0.50 per diluted share, compared to $21.6 million, or $0.30 per diluted share, in the first quarter of 2011. Core Earnings represents a non-GAAP financial measure and is defined as net income (loss) excluding (i) net realized gain (loss) on investments and termination of swap contracts and (ii) net unrealized appreciation (depreciation) on investments and swap and cap contracts. The quarter-over-quarter increase in Core Earnings was generally the result of the increase in net interest income due to forward purchases settling. The increase in interest rate spread net of hedge also contributed to the increase in Core Earnings. For the second quarter of 2011, our interest rate spread net of hedge increased to 2.23% from 1.83% for the first quarter of 2011. During the second quarter of 2011, we had $7.7 billion of average settled Agency RMBS compared to $5.0 billion during the first quarter of 2011.

The Company utilizes forward settling transactions for the majority of its purchases. The benefit of purchasing assets in forward settling transactions is that the Company can purchase assets with specified stipulations such as average loan size and percentage of loans in a particular state. This customization allows the Company to better manage prepayments. In addition, forward settling purchases allow the Company to obtain an asset at a discount (also referred to as “drop”) to its current market value; however, the Company does not receive any interest income on the asset until the forward transaction settles. Obtaining the asset at a discount to market value reduces the impact of prepayments and is accretive to net asset value.

Drop income is a component of our net income accounted for as net gain (loss) from investments on our statement of operations and therefore excluded from our Core Earnings. During the second quarter of 2011, the Company generated drop income of approximately $9.3 million, or $0.12 per diluted share, compared to approximately $22.1 million, or $0.32 per diluted share, during the first quarter of 2011. During the second quarter of 2011, the Company made forward purchases of approximately $0.8 billion of Agency RMBS with a weighted average drop of approximately $0.25 per $100.00 par value per month compared to approximately $2.6 billion of Agency RMBS with a weighted average drop of approximately $0.28 per $100.00 par value per month during the first quarter of 2011.

The Company’s interest rate spread net of hedge increased to 2.23% for the second quarter of 2011 from 1.83% in the first quarter of 2011. The current interest rate spread remains artificially low due to the hedging of forward settling purchases in advance of their earning interest income. During the second quarter of 2011, the average cost basis of the Company’s settled Agency RMBS was $7.7 billion, average unsettled Agency RMBS was $1.2 billion and average total Agency RMBS was $8.9 billion. By applying total net swap and cap interest expense of $14.9 million for the second quarter of 2011 pro rata over settled and unsettled Agency RMBS positions, swap and cap interest expense was $12.9 million relating to our settled Agency RMBS. The result is an adjusted interest rate spread net of hedge for our settled Agency RMBS positions of approximately 2.37% compared to 2.21% in the first quarter of 2011. We believe that this spread is generally more reflective of the economic return of our assets as well as what we expect our interest rate spread net of hedge to be once the forward purchases settle. The increase in the adjusted interest rate spread net of hedge was primarily due to slower prepayments in the second quarter of 2011 compared to the first quarter of 2011, as discussed below.

The Company received $2.4 million of distributions from CLOs during the second quarter of 2011, $1.3 million was accounted for as a reduction of their cost basis and thereby excluded from our interest income and Core Earnings. This compared to distributions of $2.0 million from CLOs during the first quarter of 2011, $1.1 million was accounted for as a reduction of their cost basis.

The Company’s net asset value per share on June 30, 2011 was $12.35 after declaring a $0.60 dividend per share on June 6, 2011, compared with $11.74 at March 31, 2011. The increase was primarily the result of mortgages outperforming swaps.

The Company’s operating expenses as a percentage of net assets were 1.92% for the second quarter of 2011, compared to 2.11% for the first quarter of 2011. This decrease was primarily the result of the impact of the increase in average net assets. During the second quarter of 2011, average net assets were $1,014.0 million compared to $838.6 million for the first quarter of 2011.

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Prepayments

The portfolio recorded $230.4 million in scheduled and unscheduled principal repayments and prepayments, which equated to a constant prepayment rate (“CPR”) of approximately 12.0%, and net amortization of premium of $8.7 million for the second quarter of 2011. This compared to $185.0 million in scheduled and unscheduled principal repayments and prepayments, which equated to a CPR of approximately 14.9% and net amortization of premium of $5.8 million for the first quarter of 2011.

Dividend

The Company declared a common dividend of $0.60 per share with respect to the second quarter of 2011, the same as the $0.60 per share for the first quarter of 2011. Using the closing share price of $12.81 on June 30, 2011, the second quarter dividend equates to an annualized dividend yield of 18.7%.

Portfolio

At June 30, 2011, the Company’s $8.8 billion portfolio of Agency RMBS was backed by fixed-rate mortgages and hybrid adjustable-rate mortgages (“Hybrid ARMs”) with 0 to 84 months to reset. Additional information about our Agency RMBS portfolio at June 30, 2011 is summarized below:

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Financing, Leverage & Liquidity

At June 30, 2011, the Company had financed its portfolio with approximately $7.5 billion of borrowings under repurchase agreements with a weighted average interest rate of 0.25% and a weighted average maturity of approximately 37.6 days. In addition, the Company had payable for securities purchased of $0.6 billion. The Company’s leverage ratio at June 30, 2011 was 8.1 to 1. At June 30, 2011, the Company’s liquidity position was approximately $566.0 million, consisting of unpledged Agency RMBS and cash and cash equivalents. Below is a list of outstanding repurchase agreements at June 30, 2011 (dollars in thousands):

Hedging

The Company utilizes interest rate swap and cap contracts to hedge the interest rate risk associated with the financed portion of its Agency RMBS portfolio. As of June 30, 2011, the Company had entered into 15 interest rate swap contracts with an aggregate notional amount of $4.7 billion, a weighted average fixed rate of 1.49% and a weighted average expiration of 2.9 years. At June 30, 2011, the Company had entered into three interest rate cap contracts with a notional amount of $0.7 billion, a weighted average cap rate of 1.593% and a weighted average expiration of 4.1 years. These interest rate swap and cap contracts are described below (dollars in thousands):

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Conference Call

The Company will host a conference call at 9:00 AM Eastern Time on Thursday, July 21, 2011, to discuss its financial results for the quarter ended June 30, 2011. To participate in the event by telephone, please dial 800.510.9836 at least 10 minutes prior to the start time and reference the conference passcode 86986604. International callers should dial 617.614.3670 and reference the same passcode. The conference call will also be webcast live over the Internet and can be accessed at the Company’s Web site at www.cysinv.com. To listen to the live webcast, please visit www.cysinv.com at least 15 minutes prior to the start of the call to register, download, and install necessary audio software. A dial-in replay will be available on Thursday, July 21, 2011, at approximately 12:00 PM Eastern Time through Thursday, August 4, 2011, at approximately 11:00 AM Eastern Time. To access this replay, please dial 888.286.8010 and enter the conference ID number 85278314. International callers should dial 617.801.6888 and enter the same conference ID number. A replay of the conference call will also be archived on the Company’s website at www.cysinv.com.

About Cypress Sharpridge Investments, Inc.

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

Forward Looking Statements Disclaimer

This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. These forward-looking statements relate to our interest rate spread, net of hedge. Forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us, including those described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2010, which has been filed with the Securities and Exchange Commission. If a change occurs, these forward-looking statements may vary materially from those expressed in this release. All forward-looking statements speak only as of the date on which they are made. 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.

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CYPRESS SHARPRIDGE INVESTMENTS, INC.

STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

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CYPRESS SHARPRIDGE INVESTMENTS, INC.

STATEMENTS OF OPERATIONS (UNAUDITED)

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Core Earnings:

Core Earnings represents a non-GAAP financial measure and is defined as net income (loss) excluding net realized gain (loss) on investments, net unrealized appreciation (depreciation) on investments, net realized gain (loss) on termination of swap contracts and unrealized appreciation (depreciation) on swap and cap contracts. In order to evaluate the effective yield of the portfolio, management uses Core Earnings to reflect the net investment income of our portfolio as adjusted to include the net swap and cap interest income (expense). Core Earnings allows management to isolate the interest income (expense) associated with our swaps and caps in order to monitor and project our borrowing costs and interest rate spread. In addition, management utilizes Core Earnings as a key metric in conjunction with other portfolio and market factors to determine the appropriate leverage and hedging ratios, as well as the overall structure of the portfolio.

The Company adopted Accounting Standards Codification (“ASC”) 946, Clarification of the Scope of Audit and Accounting Guide Investment Companies (“ASC 946”), prior to its deferral in February 2008, while most, if not all, other public companies that invest only in Agency RMBS have not adopted ASC 946. Under ASC 946, the Company uses financial reporting specified for investment companies, and accordingly, its investments are carried at fair value with changes in fair value included in earnings. Most other public companies that invest only in Agency RMBS include most changes in the fair value of their investments within shareholders’ equity, not in earnings. As a result, investors are not able to readily compare the Company’s results of operations to those of most of its competitors. The Company believes that the presentation of its Core Earnings is useful to investors because it provides a means of comparing its Core Earnings to those of its competitors. In addition, because Core Earnings isolates the net swap and cap interest income (expense) it provides investors with an additional metric to identify trends in the Company’s portfolio as they relate to the interest rate environment.

The primary limitation associated with Core Earnings as a measure of the Company’s financial performance over any period is that it excludes the effects of net realized gain (loss) from investments. In addition, the Company’s presentation of Core Earnings may not be comparable to similarly-titled measures of other companies, who may use different calculations. As a result, Core Earnings should not be considered as a substitute for the Company’s GAAP net income (loss) as a measure of our financial performance or any measure of our liquidity under GAAP.

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