The Financial Accounting Foundation Reappoints Timothy P. Flynn and James H. Quigley to Its Board of Trustees

Independent Oversight Body of FASB and GASB Also Appoints Three New Trustees, Robert T. Blakely, Ellyn L. Brown, and John J. Radford

Norwalk, CT, January 30, 2007—Robert J. DeSantis, president and chief operating officer of the Financial Accounting Foundation (FAF), today announced that FAF Trustees Timothy P. Flynn, chairman and chief executive of KPMG LLP, and James H. Quigley, chief executive officer of Deloitte & Touche USA LLP, have been reappointed for three-year terms ending December 31, 2009.

The FAF is responsible for the oversight, administration, and finances of both the Financial Accounting Standards Board (FASB) and its counterpart for state and local government, the Governmental Accounting Standards Board (GASB).

Mr. DeSantis also announced three new FAF Trustee appointments to replace Ned V. Regan, Edward W. Kelley, Jr., and Richard D. Johnson, each of whose terms expired in 2006. The new Trustees are Robert T. Blakely, executive vice president and chief financial officer of Fannie Mae, Ellyn L. Brown, principal of Brown and Associates, and John J. Radford, Oregon State Controller. According to Mr. DeSantis, each new Trustee has been appointed to a three-year term ending December 31, 2009.

"We look forward to the continued contributions of Tim Flynn and Jim Quigley to our commitment to ensure the independence and effectiveness of the nation's financial accounting and reporting standard setting bodies," said Robert Denham, FAF chairman. "We also are delighted with the appointments of Bob Blakely, John Radford, and Ellyn Brown to the FAF Board of Trustees, and are confident that their diverse expertise and knowledge will further the FAF's mission to enhance efficiency in the capital markets and empower investor decision-making through high-quality financial reporting standards."

"The FAF conducted a thorough and rigorous appointment process," said Mr. DeSantis. "Each of our new Trustees was selected from a group of highly qualified candidates and will add to the exceptional guidance and oversight that our Board of Trustees provide to the FAF and its standard-setting Boards."

Timothy P. Flynn

Timothy P. Flynn was elected chairman and chief executive of KPMG LLP in June 2005. A 26-year veteran of KPMG, Mr. Flynn has held a number of key leadership positions throughout the firm, and he continues to serve as client service partner for several of KPMG's largest clients. He most recently served as vice chair, Audit & Risk Advisory Services for KPMG LLP, and had operating responsibility for the firm's audit practice, as well as the risk advisory services and financial advisory services practices. He has also served as head of human resources and as global managing partner–audit for KPMG International. In that role, he chaired the firm's Global Audit Steering Group, and served as a member of the international executive team of KPMG International.

James H. Quigley

James H. Quigley was named chief executive officer of Deloitte & Touche USA LLP (D&T USA) in June 2003. He previously served as vice chairman of D&T USA and regional managing partner of D&T USA's Northeast practice, with responsibility for service to companies in the metropolitan region of New York, New Jersey, and Connecticut. Mr. Quigley is a member of D&T USA's Executive Committee, Deloitte Touche Tohmatsu (DTT) Executive and of the Boards of Directors of both D&T USA and DTT.

Robert T. Blakely

Robert T. Blakely is the executive vice president and chief financial officer of Fannie Mae. Prior to this, he was the executive vice president and chief financial officer of MCI, Inc., until 2005 when it was purchased by Verizon. He joined MCI in 2003 and led the $70 billion financial restatement effort, including a three-year re-audit and implementation of Sarbanes-Oxley compliance, as well as assisted in the emergence from bankruptcy. Mr. Blakely also has served on the Financial Accounting Standards Advisory Council.

Ellyn L. Brown

Ellyn L. Brown is the principal of Brown and Associates, Chartered, a corporate consulting firm that specializes in operations, regulatory, and governance services to financial services industry clients and other firms that operate in heavily regulated, high-scrutiny environments. Ms. Brown also teaches securities law at Villanova University Law School. Previously, she served as securities commissioner for the State of Maryland. Ms. Brown is a member of the boards of directors of NYSE Group, Inc. and NYSE Regulation, Inc., the self-regulatory organization for the Exchange. She previously was a member of the boards of the Certified Financial Planner (CFP) Board of Standards, NASD Regulation, the National Association of Personal Financial Planners, and the North American Securities Administrators Association.

John J. Radford

John J. Radford has been the Oregon State Controller since 1989, serving in this capacity under five Oregon governors. Previously, he was the management services director in the Oregon Judicial Department after being promoted from budget officer. Mr. Radford is a current member and served as the 2004 president of the National Association of State Auditors, Comptrollers, and Treasurers. He is a member of the Government Finance Officers Association, Association of Certified Fraud Examiners, the Institute of Internal Auditors, and the Association of Government Accountants.

Other FAF Trustees include:

W. Steve Albrecht
Associate Dean and Professor
Marriott School of Management
Brigham Young University

Philip D. Ameen
Vice President and Comptroller
General Electric Company

Rick Anderson
Moss Adams LLP

Robert E. Denham (Chairman, FAF)
Senior Partner Munger, Tolles & Olson LLP

Douglas R. Ellsworth
Director of Finance
Village of Schaumburg, Illinois

William H. Hansell
Executive Director Emeritus
International City/County Management Association

Duncan M. McFarland
Former Chairman and Chief Executive Officer
Wellington Management Company

Frank C. Minter
Retired Vice President and Chief Financial Officer
AT&T International

Susan M. Phillips
Dean - The George Washington University School of Business
Former Governor - Federal Reserve System

Lee N. Price
President and Chief Executive Officer
Price Performance Measurement Systems, Inc.

Paul C. Wirth
Global Controller
Morgan Stanley

About the Financial Accounting Foundation

The FAF is responsible for the oversight, administration, and finances of both the Financial Accounting Standards Board (FASB) and its counterpart for state and local government, the Governmental Accounting Standards Board (GASB). The Foundation is also responsible for selecting the members of both Boards and their respective Advisory Councils.