MuniMae Announces 40th Consecutive Increase in Quarterly Distribution

  
    
  
  
    
      Municipal Mortgage & Equity, LLC (“MuniMae,” 
      NYSE:MMA) announced today that its Board of Directors declared a 
      distribution of $0.5125 per common share payable on February 20, 2007 to 
      shareholders of record as of February 7, 2007. This represents a 4% 
      increase over the distribution for the comparable period last year. On 
      an annualized basis, the distribution equates to $2.05 per common share 
      and represents a 6.5% yield based on the January 30, 2007 closing price 
      of $31.44 per share. Because a portion of income allocated to 
      shareholders may qualify for exemption from Federal income taxes, the 
      stated yield does not reflect potentially higher net returns investors 
      may realize as compared with other investments.
    
    
      MuniMae also provided a review of the Company’s 
      business performance for the year ended December 31, 2006 as well as 
      that of its significant operating subsidiaries and certain other 
      activities. Michael L. Falcone, Chief Executive Officer, stated, “The 
      past year was a good one for MuniMae. We are pleased with our production 
      volume during the year, particularly commercial real estate financings.” 
      Mr. Falcone continued, “We are very pleased 
      with the value created for shareholders in 2006 - generating a total 
      return of better than 30%. However, this good news is mitigated by our 
      inability to file our consolidated financial statements in a timely 
      manner. We remain strongly committed to completing our restatement 
      efforts and are working hard to do so.” The 
      2006 total return is based on cash distributions paid to shareholders 
      and share price appreciation during the year. The restatement effort is 
      not expected to impact the Company’s cash 
      flow. The information in this release is based on preliminary results 
      and is subject to change as the Company completes its closing process 
      and its independent registered public accounting firm completes its 
      audit of the Company’s consolidated financial 
      statements.
    
    
      2006 Highlights
    
    
      
        Increased cash distributions paid to shareholders during the year 
        ended December 31, 2006 to $2.00 per share, a 4.2% increase from the 
        $1.92 paid during the year ended December 31, 2005,
      
      
        Originated $3.5 billion of new investments, and at December 31, 2006, 
        managed a portfolio of more than $18 billion in assets,
      
      
        Completed a strategic reorganization effort early in the year which 
        positions MuniMae to better serve its clients and offer additional 
        services and investment opportunities,
      
      
        Sponsored $1.2 billion of tax credit equity investments in affordable 
        housing projects, including a single fund with commitments for more 
        than $500 million which represents the largest affordable housing tax 
        credit equity fund ever syndicated in the United States,
      
      
        Expanded MuniMae’s core competency of 
        tax-advantaged investing and its offering of socially responsible 
        investment opportunities with the acquisition of Renewable Ventures 
        LLC, which arranges debt and equity financing for developers and 
        owners of clean energy generation facilities,
      
      
        Originated $1.8 billion of investments in commercial real estate 
        financings, and
      
      
        Completed a $192 million fixed rate bond securitization with the 
        private placement, by a MuniMae subsidiary, of certificates that bear 
        interest at 4.26% per annum and have an initial term of seven years.
      
    
    
      MMA Financial
    
    
      MMA Financial is responsible for all the Company’s 
      affordable housing activities, and is widely recognized as a leader in 
      U.S. affordable housing finance. During 2006, MMA Financial originated 
      $1.7 billion of debt and equity investments in affordable housing 
      projects nationwide. MMA Financial continues to be one of the nation’s 
      leading sponsors of tax credit equity investments in affordable housing 
      projects, sponsoring approximately $1.2 billion of such investments 
      during 2006. Among other accomplishments, the Company closed two 
      particularly significant tax credit equity funds. One of these funds 
      received gross equity investment commitments from 14 institutional 
      investors for more than $500 million in the aggregate, making it the 
      largest tax credit equity affordable housing fund ever syndicated in the 
      United States. Another fund sponsored in 2006 contains commitments in 
      excess of $350 million. These two funds demonstrate continued interest 
      in tax-advantaged affordable housing investments, as well as the 
      leadership position of MMA Financial in sponsoring and managing such 
      investments.
    
    
      MMA Financial also acquired approximately $270 million of tax exempt 
      bonds in 2006, and arranged $125 million of taxable debt financing in 
      affordable housing projects. Also in 2006, MMA Financial became a 
      Freddie Mac (NYSE: FRE) Delegated Underwriter for affordable housing 
      financings. MMA Financial is one of only seven correspondent lenders 
      approved to participate in Freddie Mac’s 
      initiative, which was launched in September 2004. This designation gives 
      MMA Financial the ability to offer its clients expedited processing and 
      increased flexibility when underwriting mortgages secured by affordable 
      housing properties with low-income housing tax credits.
    
    
      MMA Realty Capital
    
    
      MMA Realty Capital is responsible for the Company’s 
      market rate multifamily and commercial finance activities, as well as 
      real estate investment management services. During 2006, MMA Realty 
      Capital originated $1.8 billion of commercial real estate financings. 
      Production in 2006 included more than $800 million of agency 
      originations, nearly $600 million of proprietary financings and 
      approximately $400 million of investments in funds managed by MMA Realty 
      Capital for its own account and on behalf of institutional investors.
    
    
      MMA Renewable Ventures
    
    
      On May 16, 2006, MuniMae announced the acquisition of Renewable 
      Ventures, LLC, which arranges debt and equity financing for developers 
      and owners of renewable energy generation facilities. As part of 
      MuniMae, the business, now renamed MMA Renewable Ventures, expanded 
      rapidly during 2006. During the fourth quarter of the year, MMA 
      Renewable Ventures financed development of approximately $39 million of 
      solar energy facilities. These financings included $13 million of tax 
      credit equity syndications, the first such syndications in solar energy 
      project finance in the United States. MMA Renewable Ventures is 
      well-positioned to accelerate the pace of debt and equity financings in 
      renewable energy generation facilities in 2007 and beyond.
    
    
      New Business
    
    
      Through its affiliate, International Housing Solutions (IHS), the 
      Company built its platforms for arranging debt and equity financing for 
      affordable housing projects overseas. IHS was formed in 2005, and is 
      pursuing debt and equity financings, primarily in Europe, the Middle 
      East and Africa.
    
    
      Other Matters
    
    
      The Company continues its efforts to complete the restatement of its 
      previously filed consolidated financial statements. In addition to the 
      matters previously disclosed that required the restatements, the Company 
      has concluded, among other things, that it will be required to 
      consolidate substantially all of the low income housing tax credit 
      equity funds it has interests in. The Company currently has nearly $8 
      billion of low income housing tax credit equity investments under 
      management. The Company does not expect to file its annual report on 
      Form 10-K by March 31, 2007.
    
    
      The Company also announced that the Securities and Exchange Commission 
      (SEC) has commenced a non-public, informal inquiry. The SEC requested 
      the Company’s voluntary assistance in 
      providing certain documentation related primarily to the identification 
      of accounting issues resulting in the need to restate its previously 
      filed consolidated financial statements. The Company is cooperating 
      fully with the SEC and will continue to do so.
    
    
      As a result of the dedication of significant resources related to the 
      restatement effort, the Company expects to commence mailing of Schedules 
      K-1 for the 2006 tax year on or about April 1, 2007. Shareholders will 
      be able to obtain their Schedule K-1 through the Company’s 
      website on March 28, 2007 (www.munimae.com/investorrelations/taxinformation). 
      Alternatively, at that time shareholders can contact MuniMae’s 
      K-1 support center toll free at [phone] and instruct them to 
      email or fax the Schedule K-1 to the shareholder or their tax advisor. 
      Historically, Schedules K-1 have been mailed at the end of February or 
      early March, and the Company expects the mailing of the Schedule K-1 for 
      the 2007 tax year to be consistent with that timing.
    
    
      About MuniMae
    
    
      MuniMae and its subsidiaries arrange debt and equity financing for 
      developers and owners of real estate and clean energy projects. The 
      Company also provides investment management and advisory services for 
      institutional investors. Assets under management exceed $18 billion 
      including investments in over 3,000 multifamily properties, containing 
      more than 320,000 units in 49 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 features of a partnership. As a 
      result, the tax-exempt income derived from certain investments remains 
      tax-exempt when passed through to shareholders. MuniMae also conducts 
      activities through wholly owned taxable corporate subsidiaries. 
      Distributions to shareholders are normally declared quarterly.
    
    
      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 our expectations regarding the 
      Company’s sources and uses of cash, our 2006 
      performance expectations, our expectations regarding the results of our 
      reorganization efforts, our expectations for increased financings of 
      renewable energy generation facilities and our expectations related to 
      mailing Schedules K-1. 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 the audit of our financial 
      statements, 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.
    
    
      MUNIMAE: INTEGRITY. INNOVATION. SERVICE.
    
    
      www.MuniMae.com