RESTON, Va., July 31 /PRNewswire/ -- Sallie Mae (NYSE: SLM) today
announced that it has completed the purchase of USA Group's guarantee
servicing, student loan servicing and secondary market operations. Also today,
SLM Holding Corp., the parent company of Sallie Mae, was renamed USA
Education, Inc. The transaction combines two of the nation's leading
education financial service providers and merges their complementary strengths
and product offerings for the benefit of students and schools.
At closing, the company appointed Thomas J. Fitzpatrick to serve as
president and chief marketing and administrative officer, and James C.
Lintzenich to serve as president and chief operating officer. Both will join
the 16-member USA Education, Inc., Board of Directors. Fitzpatrick was an
executive vice president of Sallie Mae; Lintzenich was vice chairman and chief
executive officer of USA Group.
Also joining the holding company board from the selling company's board
are Earl A. Goode and Barry L. Williams. Mr. Goode retired as president of
GTE Information Services and GTE Directories Corp., and Mr. Williams is
president of Williams Pacific Ventures, Inc. Edward A. Fox will continue as
chairman of the board; Albert L. Lord will remain as vice chairman and chief
executive officer.
Stepping down from the board are: James E. Brandon, Richard Dooley, Marie
V. McDemmond, J. Bonnie Newman and Randolph H. Waterfield, Jr. Brandon,
Newman and Waterfield will join McDemmond as board members of the Student Loan
Marketing Association, a wholly owned subsidiary of the company.
Proceeds of the sale, totaling $770 million in cash and stock, will be
directed toward the USA Group Foundation, which is dedicated to improving
access to quality education.
The company's NYSE ticker symbol will remain SLM.
About USA Group
USA Group(R) is an Indiana-based nonprofit company that supports access to
education by providing education loan, financial and management products and
services to those pursuing, providing and promoting education. Established in
1960, USA Funds, the forerunner of USA Group, is the nation's largest
guarantor of education loans and is the designated guarantor in nine states.
Today, USA Group employs 3,000 individuals at offices in 20 states, the
District of Columbia and Canada. In 1999, the company, including USA Funds,
had revenues of $458.1 million and excess of revenues over expenses of $150.6
million.
About Sallie Mae
Sallie Mae, founded 27 years ago, provides funds for educational loans,
primarily federally guaranteed student loans originated under the Federal
Family Education Loan Program (FFELP). The company currently owns and manages
student loans for 5.3 million borrowers. Through its specialized subsidiaries
and divisions, Sallie Mae also provides an array of consumer credit loans,
including those for life-long learning and K-12 education, and business and
technical outsourcing services for colleges and universities nationwide. SLM
Holding Corp. and its subsidiaries other than the Student Loan Marketing
Association, are not sponsored by or agencies of the United States.
SOURCE SLM Holding Corp.
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800-758-5804, ext. 827187
CONTACT:
Molly Sullivan, 703-810-7157; or for
Investors and Analysts: Jeff Heinz, 703-810-7751, both of Sallie
Mae
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