Fitch Rates Municipal Improvement Corp. of Los Angeles CP Notes 'F1+'.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 27, 2004

Fitch Ratings assigns a rating of 'F1+' to the $200,000,000 Municipal Improvement Corporation of Los Angeles (MICLA), Lease Revenue Commercial Paper Notes, Tax-Exempt Series A and Taxable Series B. The rating is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by Bank of America, N.A. The rating will expire on June 1, 2007, the stated expiration date of the LOC unless extended, or upon any prior termination of the LOC. The Dealers for the notes are Bear Stearns & Co. Inc., Lehman Brothers Inc. and Backstrom McCarley Berry & Co., LLC. The notes are expected to be sold on June 3, 2004.

Under the terms of the Issuing and Paying Agent Agreement, Wells Fargo Bank, National Association (Wells Fargo), as issuing and paying agent, can authenticate commercial paper notes, when instructed, if the total principal amount of outstanding notes, plus interest to accrue, would not exceed the amount covered by the LOC. The Series A notes will be issued at par with interest at a rate not to exceed the maximum rate of 10% per annum due at maturity. The Series B notes will be sold at a discount which cannot exceed a discount rate in excess of the maximum rate. Wells Fargo is directed to draw on the LOC to pay (i) the principal and interest on maturing Series A notes and (ii) the maturity value of the Series B notes at maturity. Following the occurrence of an event of default under the LOC agreement, the bank may direct Wells Fargo to cease issuing additional notes.

Proceeds of the notes will provide funds to finance the acquisition of capital assets, including equipment and real property, to be used by the City of Los Angeles for municipal purposes.

For more information, contact Mary Jane Ziga at [phone].