Sallie Mae to Acquire GRP Mortgage Servicer Financial Services

RESTON, VA – SLM Corporation, commonly known as Sallie Mae, today announced that it has signed a purchase agreement to acquire GRP Financial Services from GRP management and Angelo, Gordon & Company. GRP is a specialty finance company that purchases and resolves mortgage loans.

“GRP brings an important and high-growth asset class to our debt management organization,” said Tim Fitzpatrick, vice chairman and chief executive officer, Sallie Mae. “GRP features an experienced management team, an excellent track record, a top-caliber servicing platform and sophisticated analytical modeling. With the addition of GRP to our existing debt management operations, we will be able to service virtually every type of major consumer debt.”

“We are proud and excited to be joining the Sallie Mae family,” said Natalie Bowden, chief executive officer, GRP. “This relationship will bring new investment opportunities and relationships to our growing business.”

Under the terms of the deal, GRP would become a wholly owned subsidiary of SLM Corporation. The company expects the acquisition to have no effect on 2005 results and to contribute $.02 to $.03 per diluted share in 2006.

GRP will retain its brand and successful strategy and senior management team. The company employs 60 individuals in White Plains, N.Y. GRP was formed in 1999 by Angelo, Gordon & Company and the current senior management team who were performing a similar role at Greenthal Realty Partners, a New York real estate advisory and asset management firm. GRP’s roots date back to 1992 when Greenthal was selected by the Resolution Trust Corporation to provide default management and other services.

SLM Corporation, commonly known as Sallie Mae, is the nation’s No. 1 paying-for-college company, managing more than $116 billion in student loans for 8 million borrowers. Sallie Mae was originally created in 1972 as a government-sponsored entity (GSE) and terminated all ties to the federal government in 2004. The company remains the country’s largest originator of federally insured student loans. Through its specialized subsidiaries and divisions, Sallie Mae also provides debt management services as well as business and technical products to a range of business clients, including colleges, universities and loan guarantors. More information is available at http://www.salliemae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.