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-Student loan portfolio runoff negatively impacts Nelnet net income.

M2 EQUITYBITES-November 12, 2012--Student loan portfolio runoff negatively impacts Nelnet net income(C)2012 M2 COMMUNICATIONS http://www.m2.com

12 November 2012 - Nelnet (NYSE: NNI) reported net income of USD53.1m, or USD1.12 per share, for the third quarter of 2012, compared to USD56.1m, or USD1.16 per share, for the same period a year ago.

The decrease in year-over-year net income was expected as the company's student loan portfolio runs off due to Congress' elimination of the Federal Family Education Loan Program in 2010. The decrease was partially offset by the growth of the company's fee-based businesses.

GAAP net income for the third quarter of 2012 was USD36.8m, or USD0.78 per share, compared with GAAP net income for the third quarter of 2011, which was USD47.5m, or USD0.98 per share. Derivative market value and foreign currency adjustments were an expense of USD16.3m, or USD0.34 per share after tax, for the third quarter of 2012, compared to an expense of USD8.6m, or USD0.18 per share after tax, for the third quarter of 2011.

Nelnet's board of directors last week declared a cash dividend on the company's outstanding shares of class A and class B common stock of USD1.10 per share. The dividend consists of a regular quarterly dividend of USD0.10 per share, and a special cash dividend of USD1.00 per share. Both dividends will be paid on November 27, 2012, to shareholders of record at the close of business on November 19, 2012. Nelnet currently has 35.8m shares of class A common stock and 11.5m shares of class B common stock outstanding.

The company will continue to evaluate quarterly dividends based on future earnings, capital requirements, financial condition, and other factors.

USD 1 = 0.62992 GBP

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Date:Nov 12, 2012
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