Correction: Fitch Places AMS Student Loan ABS on Rating Watch Negative; $666MM of Debt Affected.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 22, 2003

(This is a revised version of a press release issued July 21, including details on transaction AMS-3 2003, which changes the total debt affected, as well as a corrected rating for class B of AMS-2 2002. Transaction AMS-3 2003 was originally sold as a private placement, but the company has publicly released details on this securitization.)

Fitch Ratings places the Academic Management Services Corp. (AMS) student loan securitizations on Rating Watch Negative following the announcement by AMS' parent company, UICI, that it had discovered collateral shortfalls and reporting issues related to various transactions issued through special financing subsidiaries of AMS. AMS also announced that the President of the company has been placed on leave and relieved of all duties.

AMS has stated that the collateral shortfall and eligibility problems are isolated at EFG-III,LP and AMS-1 2002, LP, both of which are insured with a third party surety bond provided by MBIA Insurance Corporation. However, the company also stated that all seven special financing subsidiaries of AMS may have failed to comply with their respective reporting obligations under the financing documents.

Notably, Fitch's action only affects those AMS securitizations issued without the benefit of an MBIA insurance policy. However, while the depth and severity of those reporting issues remains uncertain at this time, the accuracy of all AMS reports has been called into question.

Transactions placed on Rating Watch Negative:

AMS-3 2003, LP

-- $82,500,000 auction-rate student loan-backed notes,

class A-1 'AAA';

-- $82,500,000 auction-rate student loan-backed notes,

class A-2 'AAA';

-- $82,500,000 auction-rate student loan-backed notes,

class A-3 'AAA';

-- $82,500,000 auction-rate student loan-backed notes,

class A-4 'AAA';

-- $36,700,000 auction-rate student loan-backed notes,

class B 'A'.

AMS-2 2002, LP

-- $288,000,000 floating-rate student loan-backed notes, class A

'AAA';

-- $12,000,000 floating-rate student loan-backed notes, class B

'A+'.

Transactions insured by MBIA and not affected by this action are listed below.

EFG II, LP

-- $160,600,000 auction-rate student loan backed notes, class A-1

'AAA';

-- $160,590,000 auction-rate student loan backed notes, class A-2

'AAA'.

EFG III, LP

-- Variable funding note 'AAA'.

(EFG Funding LLC commercial paper conduit is rated 'F1')

EFG IV, LP

-- $229,000,000 floating-rate student loan-backed notes, class A-1

'AAA';

-- $57,500,000 auction-rate student loan backed notes, class A-2

'AAA';

-- $57,500,000 auction-rate student loan backed notes, class A-3

'AAA'.

AMS-1 2002, LP

-- $84,000,000 auction-rate student loan backed notes, class A-1

'AAA';

-- $84,000,000 auction-rate student loan backed notes, class A-2

'AAA';

-- $84,000,000 auction-rate student loan backed notes, class A-3

'AAA';

-- $83,000,000 auction-rate student loan backed notes, class A-4

'AAA'.

AMS, based in Swansea, MA, provides access to undergraduate and postgraduate education through student loan marketing, origination, funding and servicing. Together with its subsidiaries, UICI, located in Dallas, TX, offers insurance and financial services to consumer and institutional markets.