SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, today reported fourth-quarter and year-end results that include a record $18 billion in annual preferred-channel loan originations, an 18-percent increase from the prior year. Preferred- channel loans are originated through Sallie Mae's owned or affiliated brands, and provide the engine for the company's market leadership in education finance.

"We significantly expanded our customer reach this year through acquisitions and organic growth," said Albert L. Lord, vice chairman and chief executive officer. "I am also pleased that we successfully completed our GSE privatization while delivering strong financial results. We are well positioned to build on our consistent record of performance."

Sallie Mae reports financial results on a GAAP basis and also presents certain non-GAAP or "core cash" performance measures. The company's equity investors, credit rating agencies and debt capital providers use these "core cash" measures to monitor the company's business performance. A description of the "core cash" treatment and a full reconciliation to the GAAP income statement can be found at http://www.salliemae.com.

Sallie Mae reported fourth-quarter 2004 GAAP net income of $650 million, or $1.40 per diluted share, compared to $264 million, or $.54 per diluted share, in the year-ago period. Included in the quarterly results is a $(118) million pretax charge, or $(.17) per diluted share, taken to defease the company's remaining government-sponsored enterprise (GSE) debt. Also affecting the quarterly results are accounting rule changes related to contingently convertible bonds which reduced earnings per diluted share by $(.08). For the year ended Dec. 31, 2004, GAAP net income was $1.9 billion, or $4.04 per diluted share, compared to $1.5 billion, or $3.18 per diluted share, in 2003.

"Core cash" net income for the 2004 fourth quarter was $180 million, or $.39 per diluted share, compared to $285 million, or $.59 per diluted share, in the same period last year. The effects of the GSE debt defeasance and the contingently convertible bonds on fourth quarter earnings per diluted share were $(.17) and $(.02), respectively. Exclusive of these items, fourth- quarter and year-end 2004 "core cash" net income would have been $256 million and $986 million, or $.58 per diluted share and $2.19 per diluted share, respectively.

"Core cash" net interest income was $478 million in the fourth-quarter 2004 and $1.8 billion for the year, a 10-percent increase over 2003. During the year, the company's managed student loan portfolio grew 21 percent to $107 billion.

The company received $111 million in debt management revenue during the 2004 fourth quarter and $340 million in the year, up 61 percent and 31 percent, respectively, from the year-ago periods. "Core cash" other income, which includes debt management revenues, guarantor servicing fees and privatization expenses described above, was $88 million in the 2004 fourth quarter and $499 million for the year. This compares to "core cash" other income of $190 million in the year-ago quarter and $631 million for 2003, both figures inclusive of a one-time, $42 million increase related to the sale of the company's headquarters building.

"Core cash" operating expenses were $255 million for the quarter and $859 million for the year, up from $245 million in the year-ago quarter and $768 million for 2003. Last year's fourth quarter "core cash" operating expenses included a one-time, $40 million donation to The Sallie Mae Fund of the net proceeds from the headquarters sale.

Total equity for the company at Dec. 31, 2004, was $3.1 billion, up from the year ago total of $2.6 billion. Tangible capital was 1.6 percent of managed assets at Dec. 31, 2004, compared to 2.0 percent as of Dec. 31, 2003.

The company will host its regular earnings conference call today at noon. Sallie Mae executives will be on hand to discuss various highlights of the quarter and to answer questions related to the company's performance. Individuals interested in participating should call the following number today, Jan. 19, 2005, starting at 11:45 a.m. EST: 877-356-5689 (USA and Canada) or 706-679-0623 (International). The conference call will be replayed continuously beginning Wednesday, Jan. 19, at 3:30 p.m. EST and concluding at 11:59 p.m. EST on Thursday, Jan. 27. Please dial 800-642-1687 (USA and Canada) or dial 706-645-9291 (International) and use access code 2985336. In addition, there will be a live audio Web cast of the conference call, which may be accessed at http://www.salliemae.com. A replay will be available 30-45 minutes after the live broadcast.

Statements in this release referring to expectations as to future market share, the successful consummation of any business acquisitions and other future developments are forward-looking statements, which involve risks, uncertainties and other factors that may cause the actual results to differ materially from such forward-looking statements. Such factors include, among others, changes in the terms of student loans and the educational credit marketplace arising from the implementation of applicable laws and regulations, and from changes in such laws and regulations, changes in the demand for educational financing or in financing preferences of educational institutions, students and their families, and changes in the general interest rate environment. For more information, see the company's filings with the Securities and Exchange Commission.

SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the nation's No. 1 paying-for-college company, managing more than $107 billion in student loans for more than 7 million borrowers. Sallie Mae was originally created in 1972 as a government-sponsored entity (GSE) and terminated all ties to the federal government in 2004. The company remains the country's largest originator of federally insured student loans. Through its specialized subsidiaries and divisions, Sallie Mae also provides debt management services as well as business and technical products to a range of business clients, including colleges, universities and loan guarantors. More information is available at http://www.salliemae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.