The Complaint alleges that MuniMae and a number of its senior officers and directors violated the federal securities laws by disseminating a series of false and misleading statements about MuniMae’s revenues, earnings and financial condition. The Complaint alleges, among other things, that MuniMae overstated its financial results as a result of its failure to: (a) consolidate on the Company’s balance sheet hundreds of variable interest entities, as required by applicable accounting rules; and (b) timely write-down the fair value of impaired assets. The Complaint further alleges that MuniMae falsely reported strong performance and earnings growth when, to the contrary, the Company was performing poorly and would be required to cut its dividend.

On January 28, 2008, MuniMae issued a press release announcing that the it was cutting its quarterly dividend by 37%, from $0.5250 to $0.33 per share. MuniMae also revealed that it would not complete its previously announced restatement of financial results by the March 3, 2008 deadline imposed by New York Stock Exchange, and that its stock would be delisted by the Exchange. On this announcement, the price of MuniMae stock dropped from $17.20 per share to close at $9.19 per share on January 29, 2008, representing a 47% single-day decline.

Finally, on January 29, 2008, MuniMae provided additional details regarding its restatement, including the fact that the it was required to consolidate on its balance sheet approximately 200 variable interest entities in which it holds minority interests, and it would be writing-down the fair value of certain assets held-for-sale including loans, bonds, derivatives, guarantee obligations, and mortgage servicing rights. On this disclosure, the price of MuniMae stock dropped an additional 22%, to close at $7.13 per share on January 30, 2008.

If you purchased MuniMae securities during the Class Period, you may, no later than March 31, 2008, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.

If you have sustained substantial losses in MuniMae securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.

If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or e-mail at classaction@srk-law.com.

Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.