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Bimini Capital Management (BMNM) 8-K/AThis presentation contains forward-looking statements. Such

Filed: 18 May 06, 12:00am

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May 2006

This presentation contains forward-looking statements. Such

forward-looking statements are based on information
available at the time of the preparation of this presentation
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 herein. Important factors that could cause
such differences are described in the Company’s periodic
filings with the Securities and Exchange Commission,
including the Company’s Registration Statement on Form
S-3, Form 10-K and quarterly reports on Form 10-Q. The
Company assumes no obligation to update forward looking
information to reflect actual results, changes in assumptions
or changes in other factors affecting forward-looking
information.

Safe Harbor Statement

1. Strengths and Weaknesses of the Mortgage REIT Business Model (Page 4)

2. Making the Mortgage REIT Business Model Better (Page 12)

»

Corporate Mission and Long Term Goal

»

Diversity, Diversity, Diversity

»

Board and Management are Large Shareholders

»

The Strategic Thinking Behind the OFS Acquisition

3. Capital Structure (Page 18)

4. Capital Allocation and the Relationship Between the REIT and the Taxable

REIT Subsidiary (“TRS”) (Page 19)

5. Opteum Financial Services (Page 20)

6. The REIT Portfolio (Page 27)

»

8K Released 5/8/2006

7. Analyst Estimates for OPX (Page 37)

Table of Contents

Strengths and Weaknesses of the

Mortgage REIT Business Model

§

Biggest Strength

»

Permanent Equity to Invest in Fixed Income Instruments and

Expand an Origination Platform through Various Business Cycles

§

Stock Price can go Down, but that does not Force the Investment Manager to Sell

Assets and take Permanent Losses to Book Value.

§

Hedge Fund Investors often times Withdraw their Funds at Precisely the Moment when

they should be Buying, Forcing the Hedge Fund Manager to Sell at the Wrong Time.

§

Biggest Weaknesses

»

Lack of Diversity

§

Assets, Sources of Income, Sources of Funds, Channels of Origination.

§

Many Mortgage Companies and REITs are Founded by Originators who Lack Financial

Expertise nor are they Asset Managers.

»

Event Risk

§

Margin Calls

Data Provided By Bloomberg

Strengths and Weaknesses of the Mortgage REIT

Business Model: Fed Funds Target Rate

Data Provided By Bloomberg

Strengths and Weaknesses of the Mortgage REIT

Business Model: Interest Rates

Data Provided By Bloomberg

Strengths and Weaknesses of the Mortgage REIT

Business Model: Swap Spreads

Strengths and Weaknesses of the Mortgage REIT

Business Model: Net Interest Spread

Data Provided By Bloomberg

Strengths and Weaknesses of the Mortgage REIT

Business Model: Stock Prices Reflect Fed Funds

Data Provided By Bloomberg

Strengths and Weaknesses of the Mortgage REIT Business Model:

Origination REITs Maintain Dividends Longer than RMBS REITs

Data Provided By Bloomberg and FlagStone Securities

Annualized Q3 2004 - Q1 2006 Average

Active Originator Peer Group = 13.4%

RMBS Peer Group = 9.2%

Opteum = 12.4%

Return on Equity defined as annualized dividends divided by average book

value.

Strengths and Weaknesses of the Mortgage REIT Business Model:

Despite Rising Rates, ROEs Have Been Relatively Stable

Making the Mortgage REIT Business Model Better:

Corporate Mission and Long Term Goal

Clearly Defined Corporate Mission

§

“Provide Superior Returns to our Shareholders.”

»

Protect Ultimate Book Value.

»

Stable Returns over Time.

If we achieve our Corporate Mission, we will be able

to achieve our Corporate Long Term Goal.

Clearly Defined Long Term Goal

§

“Attract, Retain, and Grow Equity Capital.”

Making the Mortgage REIT Model Better:

Diversity, Diversity, Diversity

Diversity is Inherent in Everything We Do

§

Diverse Business Model in our Core Competences

»

Mortgage Origination Platform – Three Origination Channels, Over

100 Products, Geographic Diversity.

»

Portfolio Management - $3.5 Billion in Assets, 40 Asset Sub-Classes.

»

Liquidity Management – REPO, Margin Waivers, Committed

Facilities, Trust Preferred Debt.

§

Being Diverse is Key to Avoiding Event Risk

»

Margin Calls – Principal Prepayments, Price Declines.

»

Cash Flow – Some Part of the Portfolio is Always Generating Cash

Flow.

»

Business Cycles – Each Product and Asset Responds Differently to

Changing Business Environments.

Making the Mortgage REIT Business Model Better:

Board and Management are Large Shareholders

Approximate # of

Shares

§

Independent Board⁽¹⁾

675,500

»

Bespolka, Hendricks, Kaplan, Mortenson, Ortale

•

Self, Spouse, Children, Trusts

§

Senior Management^(1,2)

3,755,000

»

Zimmer, Cauley, Norden, Levine, Floyd

•

Self, Spouse, Children, Trust

s

§

13 Other Senior Employees^(1,2)344,000

Total # of Shares = 4,774,500

Approximate Current Value of $40,000,000 as of

5/12/2006

Ownership Position Equals ~19% Of All Classes of Shares Outstanding

No Board Member, Management Personnel, or Employee Referred to on this Page has Sold any Shares of OPX

since Inception of the Company and through 5/12/2006

Notes:

(1) Includes all Issued or Fully Vested Class A, Preferred A, and Class B Shares

(2) Includes Shares Paid as Past Compensation Vesting Between May 2006 though 2008

All Data as of 5/12/06

Making the Mortgage REIT Business Model Better:

The Strategic Thinking Behind the OFS Acquisition

§

Diversify Sources of Revenue, Yet within Opteum’s Core Area of Competence.

»

Decrease Reliance of RMBS Portfolio Arbitrage on Federal Reserve Rate Decisions.

§

High Teens ROE Potential is Accretive to REIT Investment Opportunities.

§

Purchase Price was Very Fair, if not Cheap.

»

Price was approximately “Book Value” at a time when the Publicly Traded Peer Group

Multiples were 1.3x to 2.2x book.

»

Book Value Consists of Mortgage Servicing Rights and Residuals.

»

The Mortgage Banking Operation was Essentially “Free.”

§

Executive Expertise – Experience is Key to Avoiding Event Risk.

»

Top Three OFS Managers Each have Between 18 and 28 Years of Origination Experience.

»

100% Stock Deal – Only 20% of OFS Management’s OPX Stock can be Sold within First

Three Years.

»

OFS Managers Have Purchased More Shares in the Open Market Since the Transaction

was Announced.

§

OFS is Nearing the Point in Their Lifecycle (sometime in mid-2007) where Cash

Flow from Operations will be Sufficient to Sustain Organic Growth.

Data Provided By FlagStone Securities

Price to Book Ratios for RMBS (Portfolio Only)

REITs
and REITs with Origination Platforms (Active/Prime)

Data Provided By FlagStone Securities

Current Price to Book Ratios for

Active Originator REITs

Capital Structure

Class A Stock Market Capitalization*		$203,789,751
	Shares Outstanding: 24,318,586
	Share Price: $8.38
Bimini Capital Trust I		$50,000,000
	Interest Rate of 7.61%
Bimini Capital Trust II		$50,000,000
	Interest Rate of 7.8575%
Total Capital Structure		$303,789,751

Loan to OFS at 11%		$65,000,000

As of 5/12/2006 *Note: 318,388 Class B Shares were issued with dividend and voting rights.

Capital Allocation and the Relationship Between the

REIT and the Taxable REIT Subsidiary (“TRS”)

§

The Company can Allocate Resources in Three Ways.

1.

Capital to Opteum Financial Services (“OFS”, the Company’s TRS) to Facilitate Growth.

2.

REIT Portfolio Investments.

3.

Corporate Stock Buy-Back at a Discount to Current Book Value.

4.

Q4 2005 - 561,800 Shares Bought at an Average Price of $9.29.

5.

Q1 2006 - 527,300 Shares Bought at an Average Price of $8.50.

§

OFS (TRS) is Expected to Make a Profit through Their Own Operations.

»

OFS will Securitize in Agency or Private Label Format their Originations and Sell them at

the TRS Level.

»

OFS (TRS) will Retain the Mortgage Servicing Rights and the Securitization Residuals.

»

OFS uses Gain on Sale GAAP Accounting.

»

Any GAAP Profit Produced by OFS over at least the Next Few Quarters will be Retained

(Book Value Growth).

§

The REIT (Opteum Inc.) does Not Currently Anticipate Purchasing OFS

Originations for Portfolio.

»

Exception: Specified Agency Pools.

Opteum Financial Services

The Company’s Mortgage Origination Platform

and

Taxable REIT Subsidiary

Who is OFS?

Opteum Financial Services

§

OFS is a Paramus, New Jersey Based Mortgage Banker

§

Founded in 1999 by Peter Norden and Marty Levine

»

28 Years Each in the Mortgage Business (Accounting and Financial Backgrounds)

»

Founded Three Mortgage Companies Previously

§

Diversified Originator

»

Three Channels of Originations

»

Retail – 1/3

»

Wholesale – 1/3

»

Conduit – 1/3

»

All Loan Products Originated

»

Prime ‘A’

»

Alt-A – 62% of 2005 Originations

»

Expanded A-

»

Subprime – All sold, servicing released, for cash

»

Originate Loans Through Builders and Realtors

»

Not a REFI Shop

»

Loans Originated in 47 States in 2005

»

Over 1,000 Employees with 35 Offices

§

Expansion Through Selectively Adding New Offices with Seasoned

Mortgage Loan Officers

Wholesale Division:

Regional Offices (2)

Branch Offices (4)

Retail Division:

Branch Offices (30)

Conduit Division:

National Office (1)

The Origination Platform: Opteum Financial

Services

§

OFS no longer securitizes Subprime products (starting with OPMAC 2005-2).

§

OFS sells 100% of it’s Subprime Originations Servicing Released.

§

OFS no longer securitizes second mortgages (the last one in OPMAC 2005-2).

	2005				2006 (Through 3/31/06)
Product	# of Loans	Loan Amount	% of Total		# of Loans	Loan Amount	% of Total
FNMA / FHLMC	2,784	508,751,552	7.6%		798	151,987,479	11.8%
FHA / VA	1,682	245,493,826	3.6%		384	60,494,764	4.7%
Non-Conforming	1,084	343,155,332	5.1%		174	52,816,540	4.1%
Prime ARM	518	106,226,617	1.6%		25	6,536,262	0.5%
ALT-A	15,438	4,202,591,998	62.4%		2,656	785,015,215	60.8%
Expanded A- / Subprime	2,880	701,699,259	10.4%		390	79,625,969	6.2%
Second Liens	7,184	385,583,161	5.7%		1,151	72,505,012	5.6%
Negative Am ARM	50	17,332,919	0.3%		8	2,342,550	0.2%
Brokered Loan	1,430	226,854,353	3.4%		400	78,946,316	6.1%
TOTAL	33,051	6,737,689,017	100.0%		5,986	1,290,270,107	100.0%

OFS Production Summary

OFS Origination Production by Channel

Actual Conduit Results May Vary Greatly Based on Market Conditions

OFS Issuance Summary By Deal Name

Name	UPB Issue Amount	Gross WAC	Net WAC	WALTV	WACLTV	WA Fico
HMAC 2004-1	309,846,147	6.114	5.634	81.64	84.67	683
HMAC 2004-2	387,791,245	5.559	5.296	77.35	81.32	692
HMAC 2004-3	417,055,302	5.529	5.244	77.00	81.89	692
HMAC 2004-4	410,125,325	5.960	5.620	79.60	84.72	690
HMAC 2004-5	413,874,752	6.161	5.864	79.34	85.15	690
HMAC 2004-6	761,026,691	6.255	5.936	81.30	87.56	686
OPMAC 2005-1	802,625,137	6.077	5.792	78.10	85.18	688
OPMAC 2005-2	883,988,562	5.927	5.642	75.99	84.13	693
OPMAC 2005-3	937,116,704	6.067	5.796	75.56	84.61	699
OPMAC 2005-4	1,321,738,004	6.203	5.923	75.57	85.09	701
OPMAC 2005-5	986,662,596	6.209	5.918	74.05	82.35	702
OPMAC 2006-1	934,441,048	6.429	6.141	72.53	83.12	704
Total Issuance	8,566,291,513	6.099	5.806	76.60	84.28	695

	Provider	Commitments
Inter-Company Loan
	REIT Loan to OFS (10 Year Fixed Rate at 11%)	$ 65,000,000
Warehouse Lines
	GMAC – RFC (Committed)	$ 100,000,000
	UBS (Uncommitted)	$ 750,000,000
	Colonial Bank – Syndication (Committed)	$ 284,500,000
	JP Morgan (Committed)	$ 150,000,000
Aggregation Line
	Greenwich (Repo Facility)	$ 200,000,000
	Citigroup	$ 1,500,000,000
Residual Financing Line
	Citigroup	$ 50,000,000
Proposed Syndication
	JP Morgan Chase (Committed)	$ 1,000,000,000

OFS Credit Facilities and Sources of Capital

The REIT Portfolio

The REIT Portfolio

§

The REIT Currently owns Agency Mortgage Related Securities.

»

Very Little Credit Risk.

§

Diversification Across Various Types of Low-Duration Assets.

»

There is Always Cash Flow from Some Type of Mortgage, Even When other Types are

Not Generating Cash Flow.

»

Low-Duration Assets have Historically Exhibited Low Price Volatility.

»

Diversification Limits Potential Volatility from Overexposure to any One Asset Class.

1.

Adjustable Rate Securities (those that reset within 12 months)

2.

CMO Structured Monthly Resetting Floaters

3.

Hybrid ARMS and Balloons

4.

Fixed Rate Assets (specified pools, sequential CMO’s, agency debt - with low durations)

5.

Cash (Opteum typically has 40% of its equity in cash, especially prior to monthly bond factor and

prepayment release)

§

Leverage, Defined as Debt to Equity, Typically Ranges from 8x - 12x.

§

Portfolio Constructed with the Aim of Performing Well in Both Rising

and Falling Interest Rate Environments.

»

Inelastic Borrowers and Adjustable Rate Assets.

How does Opteum Effectively Address Weaknesses in the

Mortgage REIT Investment Portfolio Model and Make it Better?

1.

Cash Management and Committed Funding Agreements.

•

$1.65 Billion in Committed Lines

•

Two Principal Prepay Margin Waiver Contracts Totaling $150 Million

•

Typically, 40% of Equity in Cash Prior to Factor Releases

1.

True Quantitative Risk Management – Basel Accord.

2.

Diversification – Portfolio is Diversified across Many Classes of Low-Duration,

Low- Price Volatility, Agency Mortgage Related Assets.

•

Over 40 Subset Types of Loans

•

Weakness of Hybrid Mortgage Investment Model

•

Inelastic Borrowers

1.

Loan Level Detail Analysis – CPR-CDR Technologies.

•

Top of The Pear Tree

1.

Full Transparency – Portfolio Released Every 6 Weeks, 8-K Releases.

2.

Repo & Settlement Outsourcing – Experts, Fail Rates, Reverse Margin Calls.

3.

Application of Best Practices – In Everything We Do.

REIT Current Portfolio Holdings

REIT Current Portfolio Holdings in More Detail

REIT ARM Reset Schedule

Opteum (REIT) Liabilities

Opteum ARM & Hybrid Prepayment Speeds

Opteum Fixed & Balloon Prepayment Speeds

As of

5/15/06

Today’s REIT Investment Opportunities

on Marginal Equity

Net Asset Yield (After Amortization)5.98%

Cost of Funding (3 Month LIBOR)5.21%

Net Interest Spread (NIS)0.77%

NIS x Leverage (11:1)8.47%

Return on Unlevered Equity5.55%

Return on Investment 14.02%

Overhead (2.00%)

Funding Contracts/Other Expenses (0.50%)

Return on Equity

11.52%

Analysts Estimates for OPX

Firm	Analyst	Q2 2006 Earning s Estimate	Q3 2006 Earning s Estimate	Year 2006 Earnings Estimate	Date of Most Recent Report	Rating	Year 2006 Dividend Estimate
Deutsche Bank	Steven Laws	$ 0.13	$ 0.17	$0.61	March 22, 2006	Buy	N/A
FIG Partners	Chris Marinac	$ 0.05	N/A	$ 0.24	March 17, 2006	Market Perform	$ 0.28
Friedman Billings Ramsey	Merrill Ross	$ 0.04	$ 0.11	$ 0.39	December 13, 2005	Market Perform	N/A
Hilliard Lyons	Ross Demmerle	$ 0.32	$ 0.34	$ 0.81	March 22, 2006	Neutral	$ 0.44
Cohen Brothers	Alvar Soosaar	N/A	N/A	$ 0.55	May 10, 2006	Buy	$ 1.08
Flagstone Securities	Steve Delaney	$ 0.09	$ 0.12	$ 0.45	March 30, 2006	N/A	$ 0.37
	Average =	$ 0.13	$ 0.19	$ 0.51			$ 0.54

		High	Low	Average

Analysts Estimates for OPX Earnings Including OFS Earnings

www.opteum.com

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