MuniMae Reports Financial Results

MuniMae (NYSE: MMA) today announced unaudited financial
results for the fourth quarter and full year 2005. Net earnings were
$16.1 million ($.42 per diluted share) for the three months ended
December 31, 2005, as compared to $17.1 million ($.48 per diluted
share) for the fourth quarter of 2004, as restated. For the full year,
net earnings were $85.8 million ($2.24 per diluted share) in 2005, as
compared to $50.9 million ($1.46 per diluted share) in 2004, as
restated. Cash available for distribution (CAD) was $29.8 million for
the quarter and $95.7 million for the year ended December 31, 2005, an
increase of 34% and 17%, respectively over the comparable amounts for
2004. On a per share basis, CAD was $.78 for the three months ended
December 31, 2005, an increase of 24% over the fourth quarter of 2004.
For the full year, CAD per share was a record $2.51, an increase of 8%
over 2004 results. A reconciliation of CAD to net earnings is included
in the accompanying financial table. The financial results described
above are subject to the completion of the audit by the Company's
independent registered public accountants, and are therefore subject
to change.

   2005 Highlights

   --  Closed $77 million of acquisitions.

   --  Originated $3.8 billion of new investments, an increase of
        $1.2 billion and 49% ahead of 2004 production.

   --  Increased tax credit equity syndications 15% to $1.3 billion
        making MuniMae the largest sponsor of tax credit equity
        investments in the United States.

   --  Generated $135 million of fee revenue (on a CAD basis), a 28%
        increase over 2004.

   --  Raised more than $250 million of capital through balanced
        issuances of common stock and preferred shares.

   In recognition of these outstanding achievements, the Company's
Board of Directors approved the 36th consecutive increase in the
quarterly distribution that was paid to shareholders on February 10,
2006. The distribution of $.4925 per share represents a 4% increase
from the comparable distribution last year. On an annualized basis,
the distribution equates to $1.97 per common share and represents a
7.5% yield based on the April 10, 2006 closing price of $26.35 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.
   Commenting on the Company's strong performance, Michael L.
Falcone, Chief Executive Officer stated, "We accomplished a great deal
in 2005. We closed the acquisitions of MONY Realty Capital and Glaser
Financial which significantly expanded the mortgage banking products
we offer as well as the services we can provide to institutional
investors. In addition, we reorganized our operations to improve
profitability and client service for many years to come. With greater
diversity of revenue sources, a more efficient operating platform and
a distribution that represents a lower percentage of CAD, MuniMae is
well positioned for continued growth over the long-term."

   Conference Call

   The Company will host a conference call to discuss these financial
results at 9:00 am EST on April 12, 2006 which will be webcast. All
interested parties are welcome to attend the live webcast which can be
accessed through the "Shareholders" section of our website
(www.munimae.com). The dial in number for the conference call is (877)
464-5945 (no password is required).

   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 are more than $16 billion secured by approximately 3,000
properties, containing 330,000 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.

   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 prospects for improved
profitability and future growth, and our unaudited financial results.
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





                   MUNICIPAL MORTGAGE & EQUITY, LLC
                    CASH AVAILABLE FOR DISTRIBUTION
                 (In thousands, except per share data)
                              (Unaudited)



                            For the three months     For the year 
                                    ended                ended
                                December 31,          December 31,
                           --------------------- ---------------------
                              2005       2004       2005       2004
                            ---------  ---------  ---------  ---------
CAD REVENUES:
Interest on investments    $  38,755  $  31,184  $ 141,009  $ 126,830
Syndication fees              25,745     21,319     55,135     51,852
Asset management and
 advisory fees                 8,845      3,139     35,107     20,054
Origination and brokerage
 fees                          7,236      4,032     18,025     12,651
Guarantee fees                 5,880      4,857     13,393     11,852
Loan servicing fees            4,536      2,079     13,342      7,979
Distributions from equity
 investments in
 partnerships                  1,424      2,299     10,456      8,178
Other income                   5,153      3,073     13,375      8,385
Interest on short-term
 investments                   3,082      1,288      6,712      5,178
                            ---------  ---------  ---------  ---------
     TOTAL CAD REVENUES      100,656     73,270    306,554    252,959
                            ---------  ---------  ---------  ---------

CAD EXPENSES:
Interest expense on debt      19,359     16,548     69,959     63,528
Interest expense on
 debentures and preferred
 shares                        6,869      4,984     25,037     16,803
Salaries and benefits         29,096     14,543     87,049     64,286
Professional fees              3,887      4,057     11,048     10,294
General and administrative     7,290      5,175     21,751     16,523
Income tax expense             2,296        214      4,173        971
                            ---------  ---------  ---------  ---------
     TOTAL CAD EXPENSES       68,797     45,521    219,017    172,405
                            ---------  ---------  ---------  ---------

Net gains (losses)                42     (4,795)    13,131      1,919

Dividends paid on
 preferred shares of
 subsidiaries                  2,125        755      4,962        755
                            ---------  ---------  ---------  ---------

CASH AVAILABLE FOR
 DISTRIBUTION              $  29,776  $  22,199  $  95,706  $  81,718
                            =========  =========  =========  =========

COMMON SHARES OUTSTANDING     38,207     35,183
                            =========  =========

CAD PER COMMON SHARE       $    0.78  $    0.63  $    2.51  $    2.33
                            =========  =========  =========  =========

CASH DISTRIBUTION PER
 COMMON SHARE              $  0.4925  $  0.4725  $  1.9400  $  1.8600
                            =========  =========  =========  =========

PAYOUT RATIO                    63.2%      74.9%      77.1%      79.7%
                            =========  =========  =========  =========

RECONCILIATION OF CAD TO
 NET INCOME:
                            For the three months     For the year 
                                    ended                ended
                                December 31,          December 31,
                           --------------------- ---------------------
                                      (Restated)            (Restated)

                              2005        2004      2005        2004
                            --------- ----------  --------- ----------
CASH AVAILABLE FOR
 DISTRIBUTION              $  29,776  $  22,199  $  95,706  $  81,718
Adjustments to income due
 to the financing method
 and
consolidation of tax
 credit funds                 (3,786)       376    (11,610)    (8,679)
Fees deferred for GAAP
 purposes                    (22,355)   (10,606)   (42,435)   (26,904)
Non-cash items                12,465      6,586      8,720      4,438
Adjustments for
 investments in
 partnerships                      -     (1,651)    25,929     (8,994)
Different carrying bases           -        215      9,481      9,347
                            ---------  ---------  ---------  ---------
NET INCOME (unaudited)     $  16,100  $  17,119  $  85,791  $  50,926
                            =========  =========  =========  =========

                           --------- --------- --------- ---------
EARNINGS PER SHARE,
 DILUTED (unaudited)       $    0.42  $    0.48  $    2.24  $    1.46
                            =========  =========  =========  =========
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