The First Marblehead Corporation Files an Application with the Office of Thrift Supervision for the Acquisition of Union Federal Savings Bank.

BOSTON -- The First Marblehead Corporation (NYSE: FMD) announced today that it has submitted an application to the Office of Thrift Supervision (OTS) for approval to acquire Union Federal Savings Bank in North Providence, Rhode Island, from Union Bank, a Rhode Island banking corporation. Completion of this acquisition is subject to customary closing conditions, including obtaining the approval of the OTS. The Company expects that the acquisition of a federal savings bank will allow First Marblehead to provide a greater range of services to its current and prospective clients.

About The First Marblehead Corporation

First Marblehead provides outsourcing services for private, non-governmental, education lending in the United States. The Company helps meet the growing demand for private education loans by providing national and regional financial institutions and educational institutions, as well as businesses and other enterprises, with an integrated suite of design, implementation and securitization services for student loan programs tailored to meet the needs of their respective customers, students, employees and members.

About Union Federal Savings Bank

Union Federal Savings Bank is a $40 million asset community bank with a single branch located in North Providence, Rhode Island. The Bank provides deposit and loan services to retail customers throughout the state.

Statements in this press release regarding the proposed acquisition by First Marblehead of Union Federal Savings Bank, including statements related to the closing of the acquisition and its expected benefits, and any other statements that are not purely historical, constitute forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our plans, estimates and expectations as of July 17, 2006. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. You are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory and competitive factors, that may cause First Marblehead's performance or achievement, or the timing of events, to be materially different than those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include: the length and outcome of the regulatory review of the acquisition to be conducted by the Office of Thrift Supervision, satisfaction of additional closing conditions related to the acquisition, First Marblehead's ability to successfully integrate and manage the operations and employees of Union Federal Savings Bank, the inability to realize anticipated synergies and benefits of the acquisition and the other factors set forth under the caption "Factors That May Affect Future Results" in First Marblehead's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on May 10, 2006. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.