News from Associate Members

NELnet Completes Acquisition of MELMAC

FOR IMMEDIATE RELEASE
Contacts: Joe Bird
Vice President, Marketing and Communications, NELnet, Inc.
303.696.5374

LINCOLN, NEBR. - January 2, 2000 - Yesterday, the National Education Loan Network, Inc. (NELnet) finalized its acquisition of MELMAC, Inc. ("MELMAC"), a subsidiary of Maine Educational Loan Marketing Corporation. Under the terms of the agreement, MELMAC will continue to operate from its headquarters in Portland, Maine. This transaction marks the second conversion to for-profit status, and subsequent acquisition of a student loan secondary market by NELnet in its short history. In 1998, NELnet purchased the National Higher Education Loan Program in a similar transaction.

"MELMAC is a great addition to NELnet's existing group of companies. They're pioneers in bringing innovative educational finance products and programs to the state of Maine," said Don Bouc, president & chief executive officer, NELnet. "It's another step toward NELnet's goal of bringing together industry leaders that offer the best products and services to students and schools," added Bouc.

Tim Sabo, MELMAC chief operating officer, added, "Finalizing this acquisition is an important step for MELMAC to adjust to the changing landscape of the educational finance industry. We're very anxious to become a part of NELnet's growing national organization. As part of NELnet, MELMAC will continue to provide low-cost student loans and be better positioned to offer the students and schools of Maine the most comprehensive package of products and services in the market."

MELMAC is the third major educational finance company to join NELnet in 2000. Colorado-based student loan servicer, UNIPAC Service Corporation, and education financial service company, InTuition Holdings, Inc., of Jacksonville, Fla., became members of NELnet earlier this year.

NELnet is a privately held corporation based in Lincoln, Nebr. NELnet is composed of independent companies that market, originate, fund, and service student loans. NELnet supplies the framework that connects the components of education lending (lenders, service centers, secondary markets, financial aid officers, guarantors, students, and parents) to streamline the education finance process.