MuniMae Announces Organizational Changes

  
    
  
  
    
      Municipal Mortgage & Equity, LLC (“MuniMae” 
      or the “Company,” 
      NYSE:MMA) today announced that Charles M. Pinckney has been named Chief 
      Operating Officer and that it has accepted the resignation of Melanie M. 
      Lundquist, the Company’s Chief Financial 
      Officer. Mr. Pinckney will also serve as interim Chief Financial Officer 
      while the Company searches for a replacement for Ms. Lundquist. The 
      Company today also announced the completion of the audited financial 
      statements for MuniMae TE Bond Subsidiary, LLC (“TE 
      Bond Sub”), the subsidiary that holds the 
      majority of the Company’s tax-exempt bond 
      investments.
    
    
      Ms. Lundquist, who joined the Company in 2005 from The Rouse Company, 
      has accepted an offer to become the Chief Financial Officer of Haven 
      Custom Homes, Inc. Michael L. Falcone, the Company’s 
      Chief Executive Officer and President, commented, “We 
      are grateful to Melanie for all of her leadership, including her work 
      that led to the completion of the TE Bond Sub financial statements. We 
      remain strongly committed to completing the restatement efforts, and the 
      Company will continue to devote itself to bringing these efforts to 
      fruition.” He added, “We 
      are excited that Charlie has stepped into an expanded role, and we 
      anticipate that he will bring a wealth of experience, leadership and 
      focus to the Company’s operations. In the 
      short term, he will be focused on bringing the Company’s 
      restatement efforts to conclusion.”
    
    
      Prior to his appointment as COO and interim CFO, Mr. Pinckney was 
      Executive Vice President in charge of the Company’s 
      MMA Realty Capital business, which houses the Company’s 
      market rate investing activities. Mr. Pinckney joined the Company in 
      2000 when MuniMae purchased Whitehawk Capital, a real estate finance 
      business that Mr. Pinckney co-founded. Prior to co-founding Whitehawk 
      Capital, Mr. Pinckney worked in the real estate finance industry for 
      over 18 years with Citicorp Securities and Bank of America. Earl W. 
      Cole, III, Executive Vice President for Corporate Credit and Portfolio 
      Management, has become interim head of MMA Realty Capital.
    
    
      The Company today also announced that it has engaged Navigant 
      Consulting, Inc. to support Mr. Pinckney’s 
      efforts to complete the Company’s restatement 
      efforts. Mr. Falcone added, “The Company is 
      fortunate to have engaged the services of the Navigant team. Their track 
      record with complex accounting and restatement issues is an invaluable 
      asset and, coupled with Charlie’s skilled 
      leadership and operational expertise, we believe that we have the pieces 
      in place to complete our efforts and emerge a stronger enterprise.”
    
    
      As previously disclosed, the Company has focused its efforts on 
      completing the audited financial statements of TE Bond Sub and another 
      of its subsidiaries, MMA Mortgage Investment Corporation (“MMIC”), 
      as it simultaneously continues its efforts to complete the restatement 
      of its financial statements and finalize its 2006 annual report. Mr. 
      Falcone stated, “Completing the TE Bond Sub 
      audit is a very important step along the road toward the completion of 
      our restatement efforts and the filing of our 2006 annual report. As a 
      result of non-cash restatement adjustments, shareholders’ 
      equity in TE Bond Sub (whose common stock is 100% owned by the Company) 
      as of December 31, 2005 was approximately $52.9 million higher than the 
      $272.5 million previously reported and net income for TE Bond Sub for 
      the year then ended was approximately $11.9 million lower than the $37.5 
      million previously reported.”
    
    
      These restatement adjustments consist largely of corrections for errors 
      related to the Company’s estimation of the 
      fair value of bonds (which increased shareholders’ 
      equity in TE Bond Sub by approximately $66.9 million as of December 31, 
      2005) and the Company’s assessment of bond 
      impairments (which decreased shareholders’ 
      equity in TE Bond Sub by approximately $14.1 million as of December 31, 
      2005), for the net increase of $52.9 million mentioned above, including 
      certain other adjustments. The effects of these restatement adjustments 
      are not necessarily indicative of the effects of other restatement 
      adjustments that may be required in the Company’s 
      financial statements.
    
    
      Certain other subsidiary level audited financial statements, 
      specifically some of those for funds the Company manages on behalf of 
      others, have also been completed and provided to the appropriate 
      investors.
    
    
      The Company is continuing to work towards completing the audited 
      financial statements of MMIC and has obtained extensions through August 
      31, 2007 from the Federal National Mortgage Association (Fannie Mae) and 
      the Federal Home Loan Mortgage Corporation (Freddie Mac), each of which 
      require audited MMIC financial statements. In addition, the Company has 
      obtained waivers through August 31, 2007 from those of its lenders that 
      require delivery of audited financial statements for MMIC, and it is 
      currently in compliance with all of its debt covenants.
    
    
      The Company reiterated its intent to provide a mid-year review of the 
      Company’s performance in late July or August. 
      At that time, the Company also expects to provide more information on 
      the timing of the completion of MMIC’s 
      financial statements.
    
    
      The Company today also announced information about material weaknesses 
      in its internal controls over financial reporting that were identified 
      by management during the preparation of the financial statements of TE 
      Bond Sub and MMIC. Details about these material weaknesses, and others 
      that have been identified as the Company’s 
      restatement efforts have progressed, are included in a Current Report on 
      Form 8-K filed by the Company today.
    
    
      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 $19 billion 
      including investments in almost 3,000 properties, containing more than 
      323,000 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 various taxable 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 plans to provide a mid-year 
      review of the Company's performance. 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. The Company undertakes no 
      obligation to revise or update publicly any forward-looking statements 
      contained herein for any reason. 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