I. Corporate Fund Financial Statement Results - First Quarter 2006

DIF

• Since BIF and SAIF were under the common control of the FDIC, the accounting for the merger followed guidance similar to the pooling method whereby the carrying amounts of each fund’s assets and liabilities were combined. The financial position and operating results of the DIF reflects the combination of the funds retrospectively applied to the beginning of 2006 as well as for the prior year for comparative purposes. Recent legislation also removed the restriction on SAIF-member exit fees held in escrow. The exit fees plus earned interest were reclassified on the balance sheet as a combination of Cash & cash equivalents, Investment in U.S. Treasury obligations net, and Interest receivable on investments and were recognized as revenue on the DIF income statement as of March 31, 2006.

• The DIF fund balance was $49.2 billion as of March 31, 2006, compared to $48.6 billion at December 31, 2005, which reflects an increase of approximately 1.2 percent.

• The DIF reported comprehensive income of $596 million for the first quarter of 2006 compared to $110 million for the same period in 2005. This increase of $486 million is primarily due to the recognition of exit fees earned of $346 million, a decrease in the unrealized loss on AFS securities of $110 million, and a decrease in the provision for loss of $26 million.

• DIF reported an unrealized loss on AFS securities of $57 million for the first quarter of 2006 compared to $167 million for the same quarter last year. This significantly lower unrealized loss resulted from a smaller increase in market yields during the first quarter of 2006, a smaller total market value of AFS securities for the first quarter of 2006, and a lower average duration for the AFS securities during the first quarter of 2006.

FRF