First Marblehead, Collegiate Funding Services Sign Contract to Extend

    Business Editors/Education Editors

    BOSTON--(BUSINESS WIRE)--Feb. 7, 2005--First Marblehead (NYSE: FMD), a leading provider of outsourcing services for private, non-governmental education lending, today announced it has signed an extended term contract with Collegiate Funding Services, LLC, a subsidiary of Collegiate Funding Services, Inc. (Nasdaq: CFSI), to process and securitize direct-to-consumer and school channel product lines marketed by CFS.
    First Marblehead has provided private loan products to CFS since May 2002, and this new agreement will extend that relationship for an additional two years, until at least July 2007. "We are pleased to sign this agreement with CFS," said Daniel Meyers, Chairman and CEO of First Marblehead. "CFS is a highly capable education finance organization, and we believe that this extended contract provides significant value to both of our companies."
    With this new agreement in place, CFS will continue to market First Marblehead loan products directly to consumers nationwide, as well as through its campus channel and affinity partnership network.
    "Collegiate Funding Services is pleased to extend our relationship with First Marblehead, which enables us to offer an even greater variety of quality educational finance solutions to our customers," said J. Barry Morrow, President and CEO of Collegiate Funding Services, Inc.

    About First Marblehead Corporation

    First Marblehead provides outsourcing services for private, non-governmental, education lending in the United States. The Company helps meet the growing demand for private education loans by providing national and regional financial institutions and educational institutions, as well as businesses and other enterprises, with an integrated suite of design, implementation and securitization services for student loan programs tailored to meet the needs of their respective customers, students, employees and members.

    About Collegiate Funding Services

    Collegiate Funding Services, LLC, a subsidiary of Collegiate Funding Services, Inc. (Nasdaq: CFSI) is a leading education finance company dedicated to providing students and their families with the practical advice and loan solutions they need to help pay for and manage the cost of higher education. Collegiate Funding Services also offers a comprehensive portfolio of education loan products and services - including loan origination, loan servicing, and campus-based, scholarship and affinity marketing tools - to the higher education community. Since 1998, Collegiate Funding Services has facilitated the origination of over $16 billion in education loans, and currently manages over $10 billion in student loans for more than 400,000 borrowers. For additional information, visit www.cfsloans.com or call toll-free 1.888.423.7562

    This is a "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the private student loan market in general and for our revenue, net income and performance for fiscal year 2005 and beyond, are based upon the Company's historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. These forward-looking statements represent First Marblehead's expectations as of February 7, 2005. Subsequent events may cause our expectations to change, and we disclaim any obligation to update the forward-looking statements in the future. You are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory and competitive and other factors that may cause First Marblehead's performance or achievements to be materially different than those expressed or implied by forward-looking statements. Important factors that could cause First Marblehead's actual results to differ from its expectations include the factors set forth under the caption "Factors That May Affect Future Results" in First Marblehead's annual report on Form 10-Q filed with the Securities and Exchange Commission on November 12, 2004. These risks could cause actual results of the industry or our actual results for fiscal year 2005 and beyond to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company.

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CONTACT: First Marblehead Donald R. Peck, 617-638-2000 or Collegiate Funding Services Jaymie Gustafson, 202-336-7966 Jaymie.gustafson@zenogroup.com or Porter, LeVay & Rose, Inc. Cheryl Schneider, VP - Investor Relations Jeff Myhre, VP - Editorial 212-564-4700 Tom Gibson, VP - Media Relations 201-476-0322

KEYWORD: MASSACHUSETTS INDUSTRY KEYWORD: EDUCATION BANKING MARKETING AGREEMENTS SOURCE: First Marblehead

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