MuniMae Completes Acquisition of the HCI Unit of Lend Lease Real Estate Investments; Transaction...

Business Editors

BALTIMORE--(BUSINESS WIRE)--July 1, 2003

Municipal Mortgage & Equity, LLC (NYSE:MMA), known as MuniMae, today completed its previously announced acquisition of the Housing and Community Investing (HCI) unit of Lend Lease Real Estate Investments, a subsidiary

of Australian-based Lend Lease Corporation (ASX:LLC), for a purchase price of $102 million (US) in cash. HCI is a market leading syndicator of low income tax credit equity investments. The acquired unit will be merged with MuniMae Midland, MuniMae's operating subsidiary, to form MMA Financial, LLC.

Mark K. Joseph, Chairman of the Board and CEO of MuniMae commented, "We are very excited to have the acquisition close as scheduled. This transaction will create scale for our tax credit business, provide us with the opportunity to cross sell our debt products to a new customer base, and increase CAD per share."

"We expect to provide more detailed information on the economic impact of the acquisition within 30-45 days."

About Municipal Mortgage & Equity

MuniMae and its subsidiaries originate, service and asset manage investments in multifamily debt and equity for its own account and on behalf of others. With the completion of the transaction, assets under management will total $7.4 billion secured by 220,000 units. For its proprietary accounts, MuniMae primarily holds tax-exempt multifamily housing bonds.

As of March 31, 2003, this on-balance sheet portfolio of tax-exempt bonds was secured by 145 properties containing 35,382 units in 27 states. MuniMae participates, for a portion of the bonds, in the performance of the underlying properties.

MuniMae is organized as a limited liability company, which makes it exempt from tax at the corporate level and provides the benefit of corporate governance. In addition, the Company passes through to its shareholders primarily tax-exempt dividends, which are generated by its municipal bond investments. Dividends to shareholders are declared quarterly and paid in February, May, August and November.

About Housing and Community Investment (HCI)

Housing and Community Investing was a business unit of Lend Lease Real Estate Investments. HCI is headquartered in Boston, and employs 127 people. HCI has over 30 years of experience in affordable housing investing and was one of the first tax credit syndicators. Originally part of Boston Financial, HCI became part of Lend Lease in 1999 when Lend Lease acquired Boston Financial.

This press release contains statements which are forward looking in nature and reflect management's current views with respect to future events and financial performance. These statements are subject to many uncertainties and risks and should not be considered guarantees of future performance. This press release does not constitute an offer to sell any securities of Municipal Mortgage & Equity, LLC.

Actual results may vary materially from projected results based on a number of factors, including the actual performance of the properties pledged as collateral for the portfolio, general conditions in the local real estate markets in which the properties are located and prevailing interest rates.

MUNIMAE: TAX-EXEMPT DIVIDENDS AND GROWTH THROUGH REAL ESTATE

www.munimaemidland.com / www.mmafin.com