(<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /?>Washington, DC) The District of Columbia Tobacco Settlement Financing Corporation today priced $248 million in Tobacco Settlement Asset-Backed Bonds (Series 2006). The security for the bonds is annual payments from tobacco companies to the District resulting from the master settlement agreement between the tobacco industry and the attorneys general of 46 states and the District of Columbia. The District will sell its right to an additional amount of those annual payments to the corporation in return for the proceeds on the bonds.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /?>

The bonds are not an indebtedness of the District of Columbia, and no general fund money will be used to repay the bonds.

The four series in this bond issue have interest rates ranging from 6-1/4% to 7-1/4%. The bond ratings on each series of the issue, as assigned by Fitch Ratings, range from BBB to BB, reflecting the higher risk associated with tobacco companies.

The bond proceeds, in the amount of approximately $245 million after the payment of insurance costs, will be used mainly for capital projects to be determined by the Mayor and Council and may include health-care related projects.