Nelnet, Inc. Announces Exercise of Over-Allotment Option

Jan 14, 2004

(Lincoln, NE) - - Nelnet, Inc. (NYSE: NNI) announced today that the underwriters of the company's initial public offering exercised their over-allotment option to purchase an additional 586,800 shares of common stock at $21.00 per share on December 22, 2003.

J.P. Morgan Securities Inc. and Banc of America Securities LLC acted as joint book-running managers for the offering and were granted an option to purchase up to 1,200,000 additional shares of Class A common stock. Nelnet received $11,460,204 in net proceeds from the sale of shares. No additional shares will be purchased under the over-allotment option.

A copy of the preliminary prospectus relating to the offering may be obtained from J.P. Morgan Securities Inc., Addressing Department, One Chase Manhattan Plaza, Floor 5B, New York, NY 10081 or Banc of America Securities LLC, Prospectus Department, 100 West 33rd Street, New York, NY 10001.

Nelnet is a vertically integrated educational finance organization dedicated to providing products and services that facilitate education finance for students, schools, and lenders. With over $11 billion in total assets, Nelnet originates in excess of $2 billion for itself and its service partners annually, services more than $18 billion in student loans, and provides servicing software for an additional $27 billion in student loans. Nelnet ranks among the nation's leaders in terms of total student loan assets.

Additional information is available at www.nelnet.net.

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or expected. Among the key factors that may have a direct bearing on Nelnet's operating results, performance, or financial condition are changes in terms of student loans and the educational credit marketplace, changes in the demand for educational financing or in financing preferences of educational institutions, students and their families, or changes in the general interest rate environment and in the securitization markets for education loans.