MuniMae Announces 41st Consecutive Increase in Quarterly Distribution

  
    
  
  
    
      Municipal Mortgage & Equity, LLC (“MuniMae” 
      or “the Company,” 
      NYSE:MMA) announced that yesterday its Board of Directors declared a 
      distribution of $0.5175 per common share payable on May 23, 2007 to 
      shareholders of record as of May 10, 2007. This represents a 4% increase 
      over the distribution for the comparable period last year. On an 
      annualized basis, the distribution equates to $2.07 per common share and 
      represents a 7.5% yield based on the May 3, 2007 closing price of $27.56 
      per share. Although a portion of the 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 
      compared with other investments. The Company also confirmed that 
      assuming it is able to execute its capital plan and the business 
      performs in accordance with management’s 
      plans, the Company will continue with its quarterly distribution policy. 
      In July or August 2007, the Company intends to provide a mid-year review 
      of its investment originations as compared to the first half of 2006. 
      Michael L. Falcone, Chief Executive Officer stated, “Our 
      business is performing well. MMA Financial continues to be widely 
      recognized as a leader in affordable housing finance, and we are 
      encouraged by the prospects from MMA Realty Capital, and longer-term, 
      our new business initiatives. We are pleased to be able to increase our 
      cash distribution to shareholders and are very proud of our more than 10 
      year history of consistent growth in quarterly cash distributions.”
    
    
      The Company also announced updated information on its ongoing efforts to 
      complete the restatement of its previously filed consolidated financial 
      statements as well as its 2006 consolidated financial statements. The 
      Company has prioritized its restatement efforts by initially focusing 
      its efforts on completing the audited financial statements of two key 
      subsidiaries, MuniMae TE Bond Subsidiary, LLC (“TE 
      Bond Sub”) and MMA Mortgage Investment 
      Corporation (“MMIC”). 
      Completing these subsidiary level financial statements facilitates the 
      Company’s access to sources of capital and 
      its ability to continue to originate mortgage loans that are ultimately 
      sold to government-sponsored enterprises, such as the Federal National 
      Mortgage Association (“Fannie Mae”) 
      and the Federal Home Loan Mortgage Corporation (“Freddie 
      Mac”). The Company currently expects that the 
      audited financial statements of TE Bond Sub and MMIC will be completed 
      during the second quarter of 2007.
    
    
      As a result of prioritizing the completion of these subsidiary level 
      audited financial statements, the need to consolidate the majority of 
      the low income housing tax credit equity funds in which it holds 
      interests, and its ongoing restatement efforts, the Company currently 
      expects to file its 2006 annual report on Form 10-K on or before 
      November 30, 2007. As the Company’s 
      restatement effort has progressed, additional material weaknesses in its 
      controls over financial reporting have been identified. Consistent with 
      previously identified matters, the Company is developing and 
      implementing remediation plans to address these weaknesses. The Company 
      has met with all its lenders to update them on its progress and current 
      expectations. Further, the Company has obtained waivers from all its 
      lenders which provide for an extension for submitting the 2006 Form 10-K 
      by November 30, 2007, and it is currently in compliance with all of its 
      debt covenants.
    
    
      Since the Company did not file its 2006 annual report on Form 10-K in a 
      timely fashion, the Company was notified by the New York Stock Exchange (“NYSE”) 
      that the NYSE would monitor the Company’s 
      filing status for a period of six months from the due date of the 10-K. 
      For companies that are unable to file their annual reports within six 
      months from the required due date, the NYSE may, in its sole discretion, 
      allow the company’s securities to trade for 
      up to an additional six month period. Management of the Company met with 
      representatives of the NYSE to provide an update on the progress of its 
      restatement efforts and current expectations for completion. The Company 
      informed the NYSE that it expects to formally request an extension from 
      the NYSE to continue listing its common shares beyond September 1, 2007 
      once the six month period commencing on the due date for the annual 
      report has elapsed, however, there can be no assurances that such 
      extension will be granted. Management plans to update its lenders and 
      the NYSE on a regular basis as it makes progress in its restatement 
      efforts. The Company continues to cooperate fully with the Securities 
      and Exchange Commission in connection with its non-public, informal 
      inquiry.
    
    
      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 ability to execute our 
      capital and business plans, our plans to provide a mid-year review of 
      our investment originations, our prospects from MMA Realty Capital and 
      our new business initiatives, our expectations for completing subsidiary 
      level financial statements, our expectations for filing the 2006 Form 
      10-K, and our expectations for obtaining an extension from the NYSE to 
      continue listing our common shares. 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