FOR RELEASE: Immediate, Wednesday, September 27, 2006

Dormitory Authority Approves Nearly $4 Billion in Bonds

NEW YORK – The Board of the Dormitory Authority met today and approved six bond issues totaling $3.965 billion.

The authorizations are:

Royal Charter Properties-East Inc. This non-profit corporation plans to use bond proceeds of up to $185 million to build a 20-story staff housing facility for New York-Presbyterian Hospital, with a 96-space parking garage and a ground floor with retail space. Goldman, Sachs & Co. will be the lead manager for this negotiated sale. Winston & Strawn LLP is the Authority’s bond counsel.

The New School. The Board approved up to $80 in tax-exempt fixed-rate bonds with a maturity of up to 40 years. Proceeds will be used to acquire a leased dormitory at 300 W. 20th St., renovate leased space at 79 Fifth Ave. to create classrooms and offices, and renovate other campus facilities, including a new University Welcome Center. Founded in 1919 as the New York for Social Research, the New School continues as a center of learning and discussion in the liberal arts, public affairs and the arts, and as an alternative to more conventional higher education institutions. Lehman Brothers Inc. will be the lead manager for this negotiated sale. The Authority’s bond counsel is Hiscock & Barclay LLP. MBIA will provide municipal bond insurance.

New York State Personal Income Tax Revenue Bond Program (education, state facilities and equipment programs). The Board approved up to $1.05 billion in multiple series of tax-exempt or taxable, fixed- or variable-rate bonds to fund capital projects for state education programs and state facilities and equipment programs. The maximum maturity will be 30 years. Winston & Strawn is the Authority’s bond counsel; a lead underwriter has not been selected for this negotiated sale. Interest-rate exchange agreements may be used to maximize efficiency.

New York State Personal Income Tax Revenue Bond Program (EXCEL program). The Board approved up to $2.65 billion in multiple series or tax-exempt, fixed- and/or variable-rate bonds with terms of up to 30 years. Proceeds will be used to fund local public school district construction projects as defined by the Expanding our children’s Education and Learning (EXCEL) program. Under the 2006 legislation establishing EXCEL, New York City as a public school district will receive $1.8 billion of the funding, and other public school districts will share in $800 million. The personal income tax revenue stream is part of the security for these bonds. The Authority has not chosen lead managers as of this writing, but Sidley, Austin, Brown & Wood LLP will be the Authority’s bond counsel for the New York City portion of the issue, and Hiscock & Barclay will be bond counsel for the other public school districts’ financing.

The Board will meet next at 9:30 a.m. October 25 at the Buffalo Life Sciences Complex.

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