CFC Receives Regulatory Approvals From the FCC

  On Monday, December 7, 2009, the Federal Communications Commission (FCC)
unconditionally approved the transfer of control of Innovative
Communication Corporation's (ICC) operating subsidiaries and assignment of
related licenses to National Rural
Utilities Cooperative Finance Corporation (CFC) in connection with its
agreement with the Chapter 11 Trustee of ICC. The FCC recognized that "CFC
is financially committed to stabilizing and rehabilitating the ICC
networks" and that CFC's acquisition of these companies will "serve the
public interest, convenience, and necessity." The FCC rejected all
petitions to deny or condition the approvals.

"These approvals move CFC one step closer to receiving the required regulatory and bankruptcy court approvals. They also move us closer to a time when CFC will be able to direct the operations of ICC and its subsidiaries, make the necessary investments to improve services and continue the Trustee's rehabilitation efforts after a difficult period for telecommunications consumers in the U.S. Virgin Islands," stated CFC CFO Steven Lilly.

CFC has already received U.S. antitrust approval and regulatory approval from the government of the British Virgin Islands (BVI), which was the first transfer-of-control ever granted under the BVI's new Telecommunications Act. In January 2009, CFC announced that it would make a credit bid to acquire the outstanding stock of the ICC-owned companies. The credit bid is conditioned on approval of regulatory authorities in the jurisdictions where ICC's businesses operate.

About CFC

National Rural Utilities Cooperative Finance Corporation (CFC) is a cooperative that serves the nation's rural utility systems. With more than $20 billion in assets, CFC provides its member-owners with an assured source of market-priced capital and financial products and services. CFC can be found online at nrucfc.org.

Contact: Mike O'Brien Vice President Corporate Communications Email Contact 703-709-6709 Andrew Don Vice President Capital Markets Relations Email Contact 703-709-6869