CFC Announces $5 Billion in Revolving Credit.

HERNDON, Va. -- National Rural Utilities Cooperative Finance Corporation ("CFC") announced today that on March 23, 2005, CFC entered into two new credit agreements that provide committed revolving credit availability for commercial paper back-up and general corporate purposes.

CFC entered into a $1,975 million credit agreement that expires on March 23, 2010, with a syndicate of 25 banks arranged by J.P. Morgan Securities Inc. and Banc of America Securities LLC with JPMorgan Chase Bank, N.A. also acting as the administrative agent. CFC also entered into a $1,285 million 364-day credit agreement that expires on March 22, 2006, with a syndicate of 23 banks arranged by The Bank of Nova Scotia, also the administrative agent. CFC paid upfront fees at closing and will pay quarterly fees to the banks as determined by pricing matrices in each of the agreements. In addition, CFC maintains a $1,740 million revolving credit agreement dated March 30, 2004 that expires on March 30, 2007. The two 364-day credit agreements totaling $2,910 million dated March 30, 2004, were terminated in conjunction with the closing of the two new credit facilities.

The agreements require CFC to comply with maximum leverage and minimum times interest earned ratio covenants as defined in the agreements. However, neither agreement contains a material adverse change provision. CFC has not borrowed under the facilities; total available revolving lines of credit under the three facilities in place at March 23, 2005, is $5,000 million.

CFC (http://www.nrucfc.coop) is a not-for-profit finance cooperative that serves the nation's rural utility systems, the majority of which are electric cooperatives and their subsidiaries. With more than $20 billion in assets, CFC provides its member-owners with an assured source of low-cost capital and state-of-the-art financial products and services.