MuniMae Announces Third Quarter Financial Results And Reaffirms CAD Guidance

MuniMae (the "Company") (NYSE:MMA), a leading publicly
traded real estate finance and investment management company, today
announced financial results for the third fiscal quarter of 2005.
   The Company reported diluted earnings per share of $0.52 and $1.21
for the three and nine months ended September 30, 2005, representing
an increase of 58% and 95%, respectively, over diluted earnings per
share for the comparable periods in 2004. In addition, the Company
reported Cash Available for Distribution, or CAD, of $0.76 and $1.73
per share for the three and nine months ended September 30, 2005,
representing increases of 6% and 2%, respectively, over CAD per share
for the comparable periods in 2004.
   The distribution of $0.4875 per common share, payable on November
11, 2005, to shareholders of record as of October 31, 2005, marked a
record 35th consecutive increase in the Company's quarterly
distribution and represents an 8% annualized yield based on the $24.22
per share closing price on November 7, 2005.
   Commenting on the quarter and year-to-date results, MuniMae CEO
and President Michael Falcone stated, "Although our tax-exempt bond
originations in 2005 have fallen significantly below 2004 levels,
production volumes remain strong in our other lines of business, and
the continued low interest rate environment has enabled us to sell
selected investments at very attractive cap rates. We remain confident
in our outlook for the rest of the year, and based on our current
pipeline, we expect CAD per share for the fiscal year 2005 to be at
least $2.43."

   During the third quarter, the Company:

   --  closed its acquisition of Glaser Financial(1), adding scale
        and new product offerings to its mortgage banking business and
        increasing total Company assets under management to $16
        billion; and

   --  structured and closed $1.2 billion of investments throughout
        the business.

   Net Income and Adjusted Net Income

   For the three months ended September 30, 2005, net income was
$20.4 million, representing a 77% increase over net income for the
same period in 2004. Adjusted to exclude the impact of consolidated
tax credit equity funds and real estate operating partnerships as a
result of the application of FIN 46R and the financing method of
accounting related to guaranteed tax credit equity funds due to FAS
66, net income was $23.9 million for the three months ended September
30, 2005, representing a 52% increase over similarly adjusted net
income for the same period in 2004.
   Diluted earnings per share totaled $0.52 for the three months
ended September 30, 2005, representing a 58% increase over diluted
earnings per share for the same period in 2004. Adjusted to exclude
the impact of consolidated tax credit equity funds and the financing
method of accounting related to guaranteed tax credit equity funds,
diluted earnings per share was $0.62 for the three months ended
September 30, 2005, representing a 38% increase over the similarly
adjusted earnings per share for the same period in 2004.
   As previously reported, the Company adopted FASB Interpretation
No. 46R, "Consolidation of Variable Interest Entities" (FIN 46)
effective March 31, 2004. FIN 46R required the Company to consolidate
certain tax credit equity funds in which it had a 1% or less general
partnership interest. As a result of consolidating these funds,
syndication and certain other fees earned on these funds have been
eliminated. These changes, coupled with financing accounting required
for guaranteed tax credit equity funds, make year-over-year
comparisons difficult. Accordingly, the Company has presented the
adjusted amounts above in an effort to improve comparability as
between 2005 and 2004. These amounts are not in accordance with
generally accepted accounting principles.

   CAD Results of Operations

   For the three months ended September 30, 2005, CAD, a non-GAAP
performance measure, was $28.8 million as compared to $25.2 million
for the same period in 2004. On a per share basis, CAD was $0.76 for
the three months ended September 30, 2005, as compared to $0.72 for
the same period in 2004.

   Quarterly Distribution and Payout Ratio

   The Company's November 2005 distribution to common shareholders of
$0.4875 per share annualizes to $1.95 per share, a 4% increase over
the November 2004 annualized distribution of $1.87 per share. Based on
the November 7, 2005 closing share price of $24.22, MuniMae common
shares have an annualized yield to shareholders of 8%. Based on the
assumption that 75% to 80% of the Company's net income is exempt from
federal income tax, absent the impact of capital gains (which affects
shareholders differently depending on when they purchased their
shares), the taxable-equivalent yield would be 11.3% to 11.5%(2).
   MuniMae's CAD payout ratio for the three months ended September
30, 2005 was 64.4%, as compared to 65.1% for the same period in 2004.
On a rolling twelve-month basis, the CAD payout ratio was 81.3% for
the period ending September 30, 2005, as compared with 80.5% for the
twelve months ended September 30, 2004.

   Production Summary

   Investing Segment: For the three and nine months ended September
30, 2005, MuniMae acquired tax-exempt bonds and entered into forward
funding commitments totaling approximately $80.2 million and $176.2
million in par value, representing decreases of 6% and 31% as compared
to the three months and nine months ended September 30, 2004,
respectively. All of the third quarter 2005 financings were tax-exempt
multifamily revenue bonds associated with low-income housing tax
credits syndicated by MuniMae and other third party syndicators.

   Tax Credit Equity Segment: For the three and nine months ended
September 30, 2005, MuniMae raised $370.2 million and $692.9 million
of tax credit equity, representing an increase of 32% and 12% as
compared to the three months and nine months ended September 30, 2004,
respectively. For the three and nine months ended September 30, 2005,
MuniMae invested $254.5 million and $595.6 million in tax credit
properties, representing increases of 22% and 10% as compared to the
three months and nine months ended September 30, 2004, respectively.

   Real Estate Finance Segment: For the three and nine months ended
September 30, 2005, MuniMae's Real Estate Finance segment production
was $726.8 million and $1,240.2 million, representing an increase of
293% and 78% as compared to the three months and nine months ended
September 30, 2004, respectively. Increased production in this segment
was driven largely by taxable debt production from the business
formerly known as Glaser Financial, acquired on July 1, 2005, and
production within the Company's fund management business, which grew
significantly as a result of an acquisition that closed in February
2005.

   Management Conference Call

   Company management will host a conference call at 9:00 a.m. EST on
November 8, 2005 to review the Company's third quarter results. All
interested parties are welcome to attend the live webcast, which can
be accessed through the "Shareholder" section of our website at
www.MuniMae.com. You can also join the conference call by dialing
877-464-5945 (no pass code required).

   Supplemental Financial Information

   For more detailed financial information, along with a
reconciliation of our non-GAAP performance measures, please access the
Supplemental Financial Package, which is currently available in the
"Shareholders" section of our website at www.MuniMae.com.
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(1) Glaser Financial Group, Inc., a full service commercial mortgage 
    banker that arranged financing for multifamily, senior housing and
    commercial real estate predominately in the upper Midwest through 
    Fannie Mae DUS, Freddie Mac, HUD/FHA, conventional and conduit
    funding sources.

(2) For a shareholder a) in the 35% tax bracket, b) not subject to AMT
    and c) able to utilize all deductions passed through the Company
    to the shareholder. For 2004, the over-all tax-exempt percentage 
    was approximately 81% absent the impact of capital gains, and 75% 
    taking account of capital gains. Tax information for 2004 on Form 
    K-1 was mailed to shareholders March 3, 2005 and is also available
    on our website.
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   About the Company

   MuniMae provides debt and equity financing to owners of real
estate investments and offers investment advisory services to
institutional investors. Assets under management as of today are
approximately $16 billion secured by 3,000 properties, containing
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 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 and paid in February, May, August and November.

   Note: This press release contains some forward looking statements
intended to qualify for the safe harbor contained in Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
Forward-looking statements give our current expectations or forecasts
of future events. You can identify these statements by the fact that
they do not relate strictly to historical or current facts. These
statements may include words such as "anticipate," "estimate,"
"expect," "project," "intend," "plan," "believe" and other words and
terms of similar meaning in connection with any discussion of future
operating or financial performance. Examples of forward-looking
statements in this press release include Mr. Falcone's statement of
expectations for the Company's financial performance for the remainder
of fiscal 2005 and our statement about the timing and payment of
distributions with respect our common shares.
   Any or all of our forward-looking statements in this press release
may turn out to be wrong. They can be affected by inaccurate
assumptions we might make or by known or unknown risks and
uncertainties. Consequently, no forward-looking statement can be
guaranteed. Actual future results may vary materially. Factors that
may cause our plans, expectations, future financial condition and
results to change include, but are not limited to: (a) changes in or
failure to comply with applicable tax laws; (b) the availability of
capital to fund operations; (c) the performance of multifamily housing
developments and other investments; (d) the ability to acquire new
investments; (e) changes in accounting principles generally accepted
in the United States; (f) changes in demographic, general economic and
business conditions, both nationally and in the regions in which we
operate; and (g) other risk factors described by the Company in its
current and periodic filings with the Securities and Exchange
Commission pursuant to the Exchange Act.
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               MUNIMAE: INTEGRITY. INNOVATION. SERVICE.

                            www.MuniMae.com



                   MUNICIPAL MORTGAGE & EQUITY, LLC
                     SUPPLEMENTAL FINANCIAL DATA
                      (unaudited, in thousands)

                                   For the three   For the nine months
                                    months ended          ended
                                   September 30,      September 30,
                                 ----------------- -------------------
                                   2005     2004     2005      2004
                                 -------- -------- --------- ---------
INCOME:
Interest income                  $40,561  $34,975  $113,099  $100,594
Fee income                        21,705   14,176    55,923    42,188
Net rental income                  4,828    5,151    16,950    10,290
                                 -------- -------- --------- ---------
Total income                      67,094   54,302   185,972   153,072
                                 -------- -------- --------- ---------

EXPENSES:
Interest expense                  19,907   16,937    55,726    49,304
Interest expense on debentures
 and preferred shares              6,818    4,769    18,130    11,819
Salaries and benefits             22,227   17,759    59,915    53,742
General and administrative         6,179    7,148    22,895    17,390
Professional fees                  2,615    2,464     7,959     6,673
Depreciation and amortization      6,384    3,681    14,115     9,412
                                 -------- -------- --------- ---------
Total expenses                    64,130   52,758   178,740   148,340
                                 -------- -------- --------- ---------
Net gains (losses) and other,
 net                               7,973     (847)   29,514     5,320
                                 -------- -------- --------- ---------

Income from continuing
 operations                       10,937      697    36,746    10,052

Discontinued operations            9,480   10,865     9,480    10,865
                                 -------- -------- --------- ---------
Income before cumulative effect
 of a change in accounting
 principle                        20,417   11,562    46,226    20,917
Cumulative effect of a change in
 accounting principle                  -        -         -       520
                                 -------- -------- --------- ---------
Net income                       $20,417  $11,562  $ 46,226  $ 21,437
                                 ======== ======== ========= =========

Reconciliation to Adjusted Net
 Income
--------------------------------

Net Income                       $20,417  $11,562  $ 46,226  $ 21,437
Adjustments to exclude the
 impact of consolidated tax
 credit equity funds and
 guaranteed tax credit equity
 funds                             3,516    4,222    12,302    17,865
                                 -------- -------- --------- ---------

Adjusted earnings                $23,933  $15,784  $ 58,528  $ 39,302
                                 ======== ======== ========= =========

Reconciliation from Net Income
 to CAD
--------------------------------

Net income                       $20,417  $11,562  $ 46,226  $ 21,437
Adjustments to income due to
 financing method and
 consolidation of tax credit
 funds                             3,525   (1,142)   12,304     2,402
Fees deferred for GAAP purposes   12,789   13,117    24,197    32,440
Non-cash items                     7,879   11,283    10,504     8,015
Adjustments for investments in
 partnerships                     (6,282)    (437)  (17,821)    4,414
Different carrying bases          (9,480)  (9,189)   (9,480)   (9,189)
                                 -------- -------- --------- ---------

Cash Available for Distribution
 (CAD)                           $28,848  $25,194  $ 65,930  $ 59,519
                                 ======== ======== ========= =========
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