First Marblehead to Provide Direct-to-Consumer Private Student Loan Services for GE Consumer Finance

"Our partnership with GE Consumer Finance validates the benefitsof our DTC marketing strategy and expands on the momentum we arecreating in this area," said Jack L. Kopnisky, president and chiefexecutive officer of First Marblehead. "GE Consumer Finance's programprovides creative and essential education finance opportunities,tapping into various markets that have specialized needs we canfulfill."

"As a leading provider of credit services to consumers around theworld, we are constantly looking for ways to enhance our productofferings," said Scott Young, senior vice president of GE ConsumerFinance's Personal Finance unit. "First Marblehead provides anexcellent solution that will allow us to enter the high-growth privatestudent lending market."

Private student loans are important financing tools as they helpbridge the gap between what federal student loans finance and thereal, high costs of education. Private student loans can be used formost educational purchases, such as college "room and board" costs orcomputer system purchases, which are now required by many colleges anduniversities.

The GE Money Direct-to-Consumer program will be marketednationally via the Internet and through direct mail channels toexisting and potential GE Consumer Finance customers. While GEConsumer Finance will market student loans under the program, thestudent loans will be originated, funded, and serviced by otherentities. First Marblehead will provide facilitation, securitization,and program management services and will play a critical role inadvising GE Consumer Finance on its overall targeting and channelstrategy and student loan Web site development.

About First Marblehead

First Marblehead, a leader in creating solutions for educationfinance, provides outsourcing services for private, non-governmental,education lending in the United States. The Company helps meet thegrowing demand for private education loans by providing national andregional financial institutions and educational institutions, as wellas businesses and other enterprises, with an integrated suite ofdesign, implementation and securitization services for student loanprograms tailored to meet the needs of their respective customers,students, employees and members.

About GE Consumer Finance

With $163 billion in assets, GE Consumer Finance, a unit ofGeneral Electric Company (NYSE:GE), is a leading provider of creditservices to consumers, retailers and auto dealers in 50 countriesaround the world. GE Consumer Finance, based in Stamford, Conn.,offers a range of financial products, including private label creditcards, personal loans, bank cards, auto loans and leases, mortgages,corporate travel and purchasing cards, debt consolidation and homeequity loans and credit insurance. More information can be foundonline at www.geconsumerfinance.com.

Statements in this press release regarding First Marblehead'sagreement with GE Consumer Finance, including statements relating toFirst Marblehead's provision of private student loan services to GEConsumer Finance in the future and the expected benefits of therelationship, and any other statements that are not purely historical,constitute forward-looking statements for purposes of the safe harborprovisions of the Private Securities Litigation Reform Act of 1995.These forward-looking statements are based upon our plans, estimatesand expectations as of June 22, 2006. The inclusion of thisforward-looking information should not be regarded as a representationby us or any other person that the future plans, estimates orexpectations contemplated by us will be achieved. You are cautionedthat matters subject to forward-looking statements involve known andunknown risks and uncertainties, including economic, regulatory andcompetitive and other factors, that may cause First Marblehead'sperformance or achievements, or the timing of events, to be materiallydifferent than those expressed or implied by forward-lookingstatements. Important factors that could cause or contribute to suchdifferences include: the time and resources devoted to the marketingof the GE Consumer Finance loan programs; the demand for, and consumeracceptance of, GE Consumer Finance loan programs; First Marblehead'srelationship with GE Consumer Finance; First Marblehead's success instructuring securitization of program loans; First Marblehead'ssuccess in processing applications for program loans; and the otherfactors set forth under the caption "Item 1A - Risk Factors" in FirstMarblehead's quarterly report on Form 10-Q filed with the Securitiesand Exchange Commission on May 10, 2006. We disclaim any obligation toupdate any forward-looking statements as a result of developmentsoccurring after the date of this press release.