MuniMae to Restate GAAP Net Earnings; Aggregate Net Earnings to Increase $23 Million

Municipal Mortgage & Equity, LLC, also known as MuniMae
(NYSE:MMA), announced today that it will restate net earnings for the
nine month period ended September 30, 2005 as well as fiscal years
2004, 2003 and 2002 resulting in higher aggregated net earnings over
this period than previously reported. This restatement does not impact
cash available for distribution (CAD) in any period. CAD is a
supplemental non-GAAP performance measure reported by the Company in
addition to net earnings.
   For the nine months ended September 30, 2005, and year ended
December 31, 2004 the Company will be increasing previously reported
net earnings by $10.5 million ($.27 per diluted share) and $19.4
million ($.56 per diluted share), respectively. For the years ended
December 31, 2003 and 2002, the Company will be decreasing net
earnings by $4.2 million ($.15 per diluted share) and $2.6 million
($.09 per diluted share), respectively. The adjustments described
above are subject to the completion of the review by the Company's
independent registered public accountants.
   In connection with its fourth quarter financial reporting
processes, the Company identified the need to record certain
adjustments related to four main areas: 1) recognition of syndication
fees, 2) application of equity method accounting, 3) recognition of
interest income, and 4) amortization of mortgage servicing rights. As
a result of the efforts necessary to reflect the restatements of prior
periods, the Company expects to file for a 15 day extension to file
its annual report on Form 10-K for the year ended December 31, 2005.
Currently, the Company expects that it will file its 2005 Form 10-K
before the expiration of this extension.
   The Company will host a conference call to discuss its financial
results for the fourth quarter and full year 2005 as well as its
prospects for 2006 on or before the filing of its 2005 Form 10-K.
Details regarding the conference call will be announced as they are
available.

   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 as of today are more than $16 billion secured by 2,800
properties, containing 303,000 units in 50 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. Tax information for 2005 on Form K-1 has been mailed to
shareholders, and is available through our website.

   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 anticipated filing dates
and the anticipated changes to previously reported net earnings (to
the extent that they have not yet been reviewed by our independent
registered public accountants). 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
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