JUNE 3, 2010

Herndon, VA—National Rural Utilities Cooperative Finance Corporation (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) (CFC) announced that J. Andrew Don, vice president of Capital Market Relations, has been appointed senior vice president and treasurer. The appointment became effective on June 1. Don’s new role entails oversight of the Treasury Group, which includes all funding operations for CFC, as well as investor relations, banking relations, rating agency liaison and the loan syndication function on behalf of CFC’s member borrowers.

Don joined CFC in 1999 as the director of Loan Syndications. He has an extensive background in banking and treasury operations. Prior to joining CFC, Don held the position of vice president and manager of the Washington, D.C., office for The Bank of Tokyo–Mitsubishi. He has also worked for the Bank of Montreal and The Bank of New York. Don received a B.A. degree from Dickinson College and an M.B.A. degree from Fordham University.

In announcing the appointment, CFC Governor and CEO Sheldon C. Petersen said, “Andrew has been a vital part of our funding arm for more than 10 years. I welcome his expertise and his insight to the CFC Executive Team.”

About CFC

National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) is a cooperative that serves the nation’s rural utility systems. With more than $20 billion in assets, CFC provides its member-owners with an assured source of market-priced capital and financial products and services. CFC can be found online at nrucfc.org.

MAY 6, 2010

Herndon, Va.—The Public Services Commission of the U.S. Virgin Islands (PSC) voted unanimously yesterday to approve the acquisition by National Rural Utilities Cooperative Finance Corporation (CFC) of the Virgin Islands Telephone Corporation (Vitelco) and Innovative Cable TV. Upon final bankruptcy court approval of CFC’s acquisition of these and other businesses from the bankruptcy estate of Innovative Communication Corporation (ICC), CFC will close the transaction to own and manage ICC’s operating businesses, including Vitelco.

“Today’s approval of the transfer is the result of a lengthy and thorough review by the PSC, its Hearing Examiner, and PSC staff and its consultants,” stated CFC Chief Financial Officer Steven Lilly. “CFC is committed to operating a state-of-the-art telecommunications system that will be an asset to the businesses and residents of the Virgin Islands.”

In January 2009, CFC announced that it would make a credit bid to acquire the ICC-owned businesses from ICC, which remains in Chapter 11 bankruptcy. Today’s PSC approval represents the final regulatory approval necessary for CFC to complete its acquisition of the ICC businesses, as CFC has already received approvals from other regulators, including the U.S. Federal Communications Commission. The Chapter 11 Trustee and CFC will now request final authorization from the U.S. Bankruptcy Court to consummate the credit bid.

About CFC

National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) is a cooperative that serves the nation’s rural utility systems. With more than $20 billion in assets, CFC provides its member-owners with an assured source of market-priced capital and financial products and services. CFC can be found online at nrucfc.org.

APRIL 19, 2010

HERNDON, VA—National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) announced today preliminary findings from its annual Key Ratio Trend Analysis (KRTA), based on the 2009 operational results of 630 electric distribution cooperatives compared to a sample of the same cooperatives last year. The final KRTA report, which is expected to include results from approximately 820 distribution cooperatives, will be available in August.

“Although 2009 was a tough year for the U.S. economy, the preliminary KRTA numbers show that co-ops once again performed very well. The median financial ratios all showed an improvement over the prior year,” said Claudia Phillips, CFC vice president of Programs and Planning Analysis and KRTA manager. “While these are not final KRTA results, this preliminary report of 630 systems is a significant sample.”

The KRTA report is based on data taken from Form 7 reports—financial and statistical reports that distribution cooperatives provide annually—for the period ending December 31, 2009.

Phillips pointed to three ratios that show electric cooperatives are maintaining their financial strength during the economic downturn: Equity as a Percentage of Assets, Times Interest Earned Ratio (TIER) and Modified Debt Service Coverage (MDSC). For the median distribution cooperative among the 630 reporting, these three financial ratios were:

• Equity as a Percentage of Assets, which increased to 41.0 percent in 2009 from 40.5 in 2008.
• TIER, which rose to 2.29 in 2009 from 2.25 in 2008.
• MDSC, which increased slightly in 2009 to 1.82 from 1.81 the previous year.

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APRIL 13, 2010

Herndon, VA—National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) will hold an investor conference call and webcast on April 16, 2010, at 1 p.m. Eastern Time. Chief Financial Officer Steven Lilly will present an overview of CFC’s fiscal year 2010 third-quarter financial results followed by a question-and-answer session.

To listen to the live webcast or pre-register for the event, go to the Investors section of CFC’s Web site, nrucfc.org/investors/index.htm, and click on “Earnings Call Webcast.” Follow the log-in instructions to join the live webcast.

Participants can also access the conference call by dialing 877-407-0613 (Domestic) or 201-689-8051 (International). A replay of the webcast will be available on CFC’s Web site after the event.

CFC’s Form 10-Q for the period ended February 28, 2010, will be filed with the U.S. Securities and Exchange Commission (SEC) by the close of business on April 14, 2010. A copy will be available through the CFC Web site at nrucfc.org or via the SEC’s EDGAR database at sec.gov.

About CFC
National Rural Utilities Cooperative Finance Corporation (CFC) is a cooperative that serves the nation’s rural utility systems. With more than $20 billion in assets, CFC provides its member-owners with an assured source of market-priced capital and financial products and services. CFC can be found online at nrucfc.org.

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MARCH 11, 2010

National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) announced today that each of 14 banks acknowledged performing an independent credit analysis of CFC and committed to provide $1.3 billion of available revolving credit to CFC for commercial paper backup and general corporate purposes.

This new credit agreement is for three years and will expire on March 8, 2013. The 14-bank syndicate includes The Bank of Nova Scotia as administrative agent. The March 10, 2010, agreement replaces the March 13, 2009, 364-day facility and represents an increase of $300 million in commitments compared with the 364-day facility.

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FEBRUARY 25, 2010

The National Rural Utilities Cooperative Finance Corporation (CFC), a private not-for-profit cooperative created by America’s consumer-owned rural electric cooperatives, announced today that CoBank has agreed to a settlement relating to CFC’s discovery that for a period of years CoBank employees improperly accessed confidential and proprietary information from CFC’s password-protected, web-based “Extranet.”

In connection with the settlement, CoBank’s Chief Legal and Regulatory Officer, Mark Yonkman, stated: “CoBank acknowledges that for a period of years CoBank employees accessed confidential and proprietary information from a password-protected ‘Extranet’ of its competitor, CFC, without authorization from CFC. The settlement includes a monetary payment to CFC as well as non-monetary commitments, including an agreement not to engage in the challenged conduct in the future.”

CFC notified CoBank immediately upon discovery of the unauthorized access, and CoBank responded promptly.

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CoBank has consented to the issuance of this statement.

JANUARY 20, 2010

Herndon, VA—National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) will hold an investor conference call and webcast on January 25, 2010, at 2 p.m. Eastern Time. Chief Financial Officer Steven Lilly will present an overview of CFC’s fiscal year 2010 second-quarter financial results followed by a question-and-answer session.

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JANUARY 19, 2010

Herndon, Va.—On Wednesday, January 13, the Netherlands Antilles Minister of Transport and Communications, the Honorable Maurice Adriaens, granted unconditional consent for National Rural Utilities Cooperative Finance Corporation (CFC) to acquire Caribbean Teleview Services N.V. d/b/a St. Maarten Cable TV and East Caribbean Cellular N.V. (ECC) in connection with its agreement with the Chapter 11 Trustee of Innovative Communication Corporation (ICC).

“CFC thanks the Netherlands Antilles government for granting this approval,” CFC Chief Financial Officer Steven Lilly said.

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DECEMBER 8, 2009

Herndon, Va.—On Monday, December 7, 2009, the Federal Communications Commission (FCC) unconditionally approved the transfer of control of Innovative Communication Corporation’s (ICC) operating subsidiaries and assignment of related licenses to National Rural Utilities Cooperative Finance Corporation (CFC) in connection with its agreement with the Chapter 11 Trustee of ICC. The FCC recognized that “CFC is financially committed to stabilizing and rehabilitating the ICC networks” and that CFC’s acquisition of these companies will “serve the public interest, convenience, and necessity.” The FCC rejected all petitions to deny or condition the approvals.

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NOVEMBER 24, 2009

Herndon, Va.—Moody’s Investors Service announced today that it has affirmed the ratings of National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) and maintained CFC’s Stable Rating Outlook.

Moody’s ratings of CFC are as follows:

• Senior Secured Debt A1
• Senior Unsecured Debt A2
• Subordinated Debt A3
• Short-term Debt Prime-1

“We are pleased that Moody’s recognizes the sound financial position of CFC and its members,” said CFC’s CEO Sheldon C. Petersen.

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