FOR RELEASE: Immediate, Wednesday, June 29, 2005

Board Approves Hospital, Courthouse Financings

NEW YORK – The Dormitory Authority Board met today in its One Penn Plaza offices to adopt two sets of financing documents, among other business.

The Board approved a sub-series of up to $25 million in 30-year, tax-exempt fixed-rate bonds for the North Shore-Long Island Jewish Health System Obligated Group. The Group is building two digital cardiac catheterization labs and support space on its Manhasset campus, ambulatory oncology and ambulatory surgery facilities at I-Park; and other capital improvements and utility upgrades. Under the plan of finance, the Dormitory Authority issued variable-rate demand obligations that are expected to remain outstanding through the construction period. After completion, the obligations are expected to be converted to fixed-rate bonds.

Today’s Board approval authorizes the remaining funding in North Shore-LIJ’s plan. The first $135 million had been approved at the March 30th meeting, but at that time, there was not sufficient statutory authorization to issue the entire $160 million the Obligated Group requested. Citigroup Global Markets Inc. is the lead manager for this negotiated sale. Orrick Herrington & Sutcliffe is the Dormitory Authority’s bond counsel.

The Board also approved a bond sale of up to $105 million in 25-year tax-exempt fixed-rate bonds on behalf of Westchester County. The County will use approximately $21 million of the proceeds to complete Phase 3 of its County Court Facilities Master Plan, and will use the rest to refund its 1998 Dormitory Authority bonds, which had funded the first two construction phases. Citigroup Global Markets Inc. is the lead manager for this negotiated sale, and Nixon Peabody is the Authority’s bond counsel.

Representatives of KPMG had presented the audited basic financial statements and related reports to the Board’s Audit Committee on June 28th. The facts were summarized for a presentation to the Board. As of March 31, 2005, the Dormitory Authority had a portfolio of $31.698 billion in outstanding bonds.

In other business, the Board adopted the annual investment report for the fiscal year 2004-05. The Board approved a pool of 15 information systems consultants, selected through a competitive procurement process. Empanelling a pool ensures that the Authority has access to quality information systems consultants on a timely basis as they were needed.

The Board is scheduled to meet at 9:30 a.m. July 27 in its headquarters at 515 Broadway, Albany.

For more information, contact Press Officer Claudia Hutton at (518) 257 3382, or CHutton@dasny.org or www.nyc.gov .