ELM Forms CEO Search Committee.

OAKLAND, Calif. -- Diane Stemper, President and CEO of ELM Resources has announced her resignation, effective June 30th, 2006. The Board of Directors has formed a search committee that will identify a new CEO in the near future.

Doris Grose, Chair of the ELM Resources Board of Directors commented, "We are grateful for the many contributions Diane has made to ELM over the past three years. As a result of Diane's leadership, ELM is a far stronger company and better positioned to meet the growing demands of our lender and school customers. Until a new CEO is hired, Maria Alvarez, Chief Operating Officer; Pierre Vedel, Chief Information Officer; and Harald Hansen, Chief Financial Officer, will work with Chris Strausser, who has been engaged as the interim head of ELM Sales, Marketing, and Training and Doug Dolton, who has been engaged by the ELM Board of Directors as an advisor to the Board. This team, with guidance from the Board of Directors, will continue to provide the outstanding service the company's lender and school customers have come to expect."

"ELM is a special company that plays a critical role in the student loan industry," said Diane Stemper. "I am proud of what ELM has accomplished over the past three years, but I look forward to pursuing other exciting opportunities. ELM is well positioned to continue its success with members and school clients."

The search committee, led by Michael McFarlane, the Vice Chair of the ELM Board, is comprised of members of the ELM Resources Board of Directors. A search has been initiated and the Board is confident it can quickly identify the ideal candidate to lead ELM.

With a mission to achieve an open market, ELM Resources was established in 1994 as the student loan industry's only mutual benefit corporation. Through its members -- lenders, guarantors, and loan servicers -- ELM administers a common, open, and universal data exchange network that seamlessly links diverse computing platforms. ELM offers students and schools a single data channel, for both alternative and government guaranteed loans, regardless of which loan provider is serving the customer.

ELM Members are:

Access Group, Inc. - ACS Education Services, Inc. - AES/PHEAA - American Student Assistance - AmSouth Bank - BAC International Credit Corp. - BancorpSouth - Bank of America, N.A. - Brazos Higher Education Service - Citibank, The Student Loan Corp. - Citizens Bank - College Foundation - College Loan Corp. - Collegiate Funding Services - CollegeInvest - Connecticut Student Loan Foundation - EdFinancial Services - EDFUND - Education Assistance Service Company Inc. - Education Services Foundation - Georgia Higher Education Assistance Corp. - HSBC Bank USA, N.A. - Illinois Student Assistance Commission - Iowa Student Loan Liquidity Corp - JPMorgan Chase & Co. - Key Bank - MOHELA - National Student Loan Program - Nelnet - North Carolina State Education Assistance Authority - Oklahoma Student Loan Authority - PNC Bank - Sallie Mae - South Carolina Student Loan Corp. - Stillwater National Bank - Student Loan Finance Corp - Student Loan Xpress, Inc. - SunTrust Bank - Texas Guaranteed Student Loan Corp. - Trustmark National Bank - U.S. Bank - University of Chicago - USA Funds - Utah Higher Education Assistance Authority - Vermont Student Assistance Corp. - Wachovia Education Finance - Wells Fargo Education Financial Services - Zions First National Bank

A complete listing of ELM Affiliates and participants is available on the ELM Web site at www.elmresources.com.