3/14/02

FOR IMMEDIATE RELEASE

Contact:

Gary Shontz, UNI controller/secretary/treasurer, (319) 273-3576

Vicki Grimes, University Marketing & Public Relations, (319) 273-2761

Bond rates upgraded for University of Northern Iowa

CEDAR FALLS, Iowa -- Moody's Investors Service has assigned an A2 rating to the University of Northern Iowa's nearly $12.8 million in Student Union Revenue Bonds, Series UNI 2002, issued by the Board of Regents, State of Iowa. The bonds, scheduled for sale by bid Thursday, March 14, by the Regents, will be used to expand and remodel UNI's Maucker Union.

Moody's also upgraded to A2 from A3 the ratings on the university's outstanding related debt: $41 million of Academic Building Revenue Bonds, $31 million of Dormitory Revenue Bonds and $14 million of Field House Revenue Bonds.

"This is the first time our bond rating has been raised and speaks to the confidence that Moody's has in the financial and general management of the university," said Gary Shontz, UNI controller and secretary/treasurer for the university. "The raising of our rating means that we should see a reduction in the interest cost of the bonds to us. This is a plus for our students as well, since the bonds are guaranteed by student fees."

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Bond rating raised 0302 v:L,Bus

VI