From Joseph P. Herbst, CEO

On May 30, 2008, as part of their normal review cycle, Fitch maintained Members United's ratings of:

--Long-term IDR 'AA-'
--Short-term IDR 'F1+'
--Short-term debt 'F1+'
--Individual 'A/B'

However they placed these ratings on a “rating watch negative.” In their release, Fitch stated, "The investment portfolio is of high quality and continues to pay as agreed to this point, but does contain meaningful exposure to subprime and Alt-A mortgages." Also, “should... Members United’s other fundamental strengths remain intact, particularly its considerable liquidity, the company’s ratings would likely stabilize.” Read Fitch's statement in full.

Since Fitch’s statement was released, conversations between Members United staff and credit union professionals have made clear the wide range of understanding among our members about this issue. The purpose of this message is to clear up any misconceptions.

During this time of market dislocation, virtually all financial institutions, including Members United, are impacted in some way. However, it is important to note:

	The Fitch rating watch has no impact on Members United’s ability to serve your credit union.
	It does not affect how Members United runs its business or how it manages its portfolios.
	It does not affect Members United's ability to provide liquidity to members and will not affect our ability to continue to serve our members.

In my remarks at Members United’s Economic Forum conference, June 2-4, 2008, I shared these thoughts (also reported in the June 4, 2008 CUNA News Now article, Rating for Members United Corporate Reflects Economy):

"Rating agencies clearly are taking a cautious view of all financial institutions at this time. The continuing market dislocation has resulted in distressed market pricing. This action by Fitch is largely driven by the unrealized losses we've experienced as a result of these unprecedented market conditions.

We remain confident in the performance of our portfolio and balance sheet. These unrealized losses are expected to be erased over time, as this situation eases and the market values of the securities return to normal levels."

For our most recent financial information, click here. Ratings of Members United by the major ratings agencies can always be viewed at www.membersunited.org, as well. Please scroll down for additional links to resources for members.

Thank you for your time and attention and as always, for your continued support of Members United.

-- Joseph P. Herbst, CEO

RESOURCES FOR MEMBERS

Financial Update - stay informed with our monthly webinar. The next one is June 12th. Recordings are available.

Portfolio Update (April 30, 2008) - an enhanced look into Members United's balance sheet.

Monthly Financial Statement (April 2008) - posted approximately six weeks after the month's close.