To assist readers in understanding Ginnie Mae’s recent financial history, the following table provides three year financial highlights of the corporation: THREE-YEAR FINANCIAL HIGHLIGHTS September 30, 2001 2000 1999 (Dollars in thousands) Balance Sheets and Liquidity Analysis Funds with U.S. Treasury $ 2,043,000 $ 1,617,600 $ 1,210,800 U.S. Government Securities $ 6,557,100 $ 6,171,000 $ 5,778,000 Total Assets $ 8,739,300 $ 7,919,200 $ 7,123,300 Total Liabilities $ 615,100 $ 600,300 $ 567,200 Investment of U.S. Government $ 8,124,200 $ 7,318,900 $ 6,556,100 Total RPB Outstanding (1) $604,308,600 $603,471,487 $569,649,659 LLR (2) and Investment of U.S. Government $ 8,659,700 $ 7,852,200 $ 7,059,400 Investment of U.S. Government as a percentage of Average Total Assets 97.54% 97.00% 97.20% LLR and Investment of U.S. Government as a percentage of RPB 1.43% 1.30% 1.24% Capital Adequacy Ratio (3) 1.41% 1.28% 1.22% Statements of Revenues and Expenses & Profitability Ratios Year ended September 30, MBS Program Income $ 438,700 $ 408,200 $ 405,000 Interest Income $ 430,300 $ 415,800 $ 380,300 Revenues $ 878,500 $ 832,000 $ 798,600 MBS Program Expenses $ 40,100 $ 37,900 $ 42,500 Administrative and Other Expenses $ 9,300 $ 9,300 $ 9,300 Provision for Loss $ 23,800 $ 22,000 $ -    Total Expenses $ 49,400 $ 47,200 $ 51,800 Excess of Revenues over Expenses $ 805,300 $ 762,800 $ 746,800 Total Expense as a percentage of Average RPB 0.0082% 0.0078% 0.0093% Provision for Loss as a percentage of Average RPB 0.0039% 0.0038% -    (1) Remaining Principal Balance (RPB) of Ginnie Mae MBS (2) Loan Loss Reserve (LLR) (3) Investment of U.S. Government plus Loan Loss Reserve divided by the sum of Total Assets and Remaining Principal Balance 18 G i n n i e   M a e   A n n u a l   R e p o r t   2 0 0 1