MuniMae Announces 36th Consecutive Increase in Quarterly Distribution; Strategic Reorganization to Improve Profitability and Sha

MuniMae (NYSE:MMA) announced that its Board of Directors
yesterday declared a distribution of $0.4925 per common share payable
on February 10, 2006, to shareholders of record as of January 30,
2006. This represents an increase of 4.2% over the distribution for
the comparable period last year. On an annualized basis, the
distribution equates to $1.97 per common share and represents a 7.3%
yield based on the January 19, 2006 closing price of $26.83 per share.
The stated yield does not give effect to any tax savings investors may
realize from the portion of the distribution that is exempt from
Federal income taxes. The Company also announced a reorganization of
its operations designed to improve profitability and enhance
shareholder value in 2006 and beyond.
   Michael L. Falcone, Chief Executive Officer stated, "Financial
performance was very strong in 2005, and we are pleased to again
increase the distribution to our common shareholders. During the year,
production was more than $1 billion ahead of 2004 as a result of
acquisitions and organic growth. We also raised approximately $1.3
billion in tax credit equity, a record for the Company and an increase
of 18% over the prior year. We are optimistic about our growth
prospects for 2006."
   The Company also recently completed a reorganization effort
designed to simplify its structure, better serve its clients and
position it to offer additional services and investment opportunities.
MuniMae now has two major business groups: affordable housing, and
real estate finance and investment management. Executive Vice
President Gary A. Mentesana will lead the affordable housing group
which combines the tax credit equity and tax exempt and taxable
lending businesses. The combination of these functions will enable the
Company to better leverage its intellectual capital in order to
provide the highest quality service possible to its developer and
investor clients. The real estate finance and investment management
group which is responsible for market rate multifamily and commercial
financings by the Company will be headed by Executive Vice President
Charles M. Pinckney and will expand services provided to institutional
investors through direct advisory agreements, MuniMae sponsored funds
and other financing products.
   Executive Vice Presidents Jenny Netzer and Frank G. Creamer, Jr.
will lead efforts to expand business opportunities and capital
relationships. Ms. Netzer will focus on developing new tax credit and
affordable housing finance products. Mr. Creamer will be responsible
for broadening relationships with financial institutions and pension
funds as well as providing support to the Company's strategic
initiatives. As previously announced, Melanie M. Lundquist assumed the
role of Executive Vice President and Chief Financial Officer,
effective January 1, 2006. Earl W. Cole, III, Executive Vice
President, remains in charge of credit policy and Stephen A. Goldberg
will continue as General Counsel. Taken together, the reorganization
effort resulted in a reduction in the Company's workforce of
approximately 8%.
   Commenting on the reorganization, Mr. Falcone stated, "We
constantly look for ways to improve our service to capital partners
and developer clients. While efforts such as these are never easy, and
good people were asked to leave the business, we have nonetheless now
positioned ourselves to deliver services more efficiently and pursue
new opportunities that will improve profitability and increase
shareholder value for many years to come. Moreover, we were able to
accomplish the reorganization while still exceeding our financial
goals for 2005, and we have strong prospects for solid growth in
2006." Management will review the Company's 2005 financial results and
its 2006 objectives in detail during its conference call in early
March, 2006.

   About MuniMae

   MuniMae and its subsidiaries arrange debt and equity financing for
developers of multifamily housing, and provide other real estate
related investment management and advisory services. Assets under
management as of today are approximately $16 billion secured by 2,800
properties, containing 303,000 units in 50 states, the District of
Columbia, Puerto Rico and the U.S. Virgin Islands.
   MuniMae is organized as a limited liability company, which allows
it to combine the limited liability, governance and management
characteristics of a corporation with the pass-through income features
of a partnership. As a result, the tax-exempt income derived from
certain investments remains tax-exempt when passed through to
shareholders. Distributions to shareholders are normally declared
quarterly. Tax information for 2005 on Form K-1 will be mailed to
shareholders on or about February 28, 2006, and will be available
through our website.

   Statements in this press release that are not historical fact may
be deemed 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. Examples of such
statements in this press release include: (1) our anticipated
financial performance for 2005, (2) our prospects for improved
profitability and increased shareholder value, and (3) our prospects
for growth in 2006. Although the Company believes the expectations
reflected in any forward-looking statements are based on reasonable
assumptions, the Company can give no assurance that its expectations
will be attained. Factors that could cause actual results to differ
materially from the Company's expectations include completion of
pending investments, continued ability to originate new investments,
the mix of business between tax-exempt and taxable activities, the
availability and cost of capital for future investments, competition
within the finance and real estate industries, economic conditions,
loss experience and other risks detailed from time to time in the
Company's SEC reports. This press release does not constitute an offer
to sell any securities of the Company or any other entity.
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               MUNIMAE: INTEGRITY. INNOVATION. SERVICE.
                            www.MuniMae.com
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