$2.9 Million in Seattle Bank Funding Will Create 418 Homes in Six States.

SEATTLE -- The Federal Home Loan Bank of Seattle (Seattle Bank) announced today it will provide $2,904,940 in grants during 2005 to fund affordable housing initiatives in six states. The funding will help create 418 housing units for people in need, including low-income farmworkers, homeless mothers and their children, and households affected by developmental disabilities.

The grants will be distributed to members of the Seattle Bank cooperative working to improve housing conditions in both urban and rural communities. The 418 units include 149 homeownership projects and 269 affordable rental housing units. The funds will be disbursed to projects in Alaska, Montana, Oregon, Utah, Washington, and Wyoming.

Every year, the Seattle Bank contributes approximately 10 percent of its net income from the previous year to fund housing under its Affordable Housing Program (AHP). Since the program's inception in 1990, the Seattle Bank has contributed nearly $160 million to help finance over 31,000 homes for people in need. AHP funds are generally disbursed twice a year as a series of grants. This latest series of grants represents the first round of funding for 2005.

The AHP funds housing for families or individuals earning 80 percent or less of their area's median income. These funds can be used to acquire, rehabilitate, or construct new or existing housing structures, reduce mortgage principal or interest rates on loans, as well as cover down payment and closing costs. In addition to the AHP, the Seattle Bank supports a variety of other community and economic development projects through its Community Investment Program, Economic Development Fund, Challenge Fund, and other programs.

More information on this latest round of AHP projects, as well as other Seattle Bank community investment projects, is available at: www.fhlbsea.com.

About the Seattle Bank

The mission of the Seattle Bank is to build financial partnerships that enhance the success of our members and make our communities better places to work and live. Our funding and financial services enable over 370 member institutions to provide their customers with greater access to mortgages, commercial lending, and affordable housing. Every year, the Seattle Bank commits 10 percent of its profits to help fund homeownership and multi-family housing.

The Seattle Bank is a member-owned cooperative that serves eight states, Guam, and United States territories in the Pacific. Members of the Seattle Bank cooperative include commercial banks, credit unions, thrifts, industrial loan corporations, and insurance companies. The Seattle Bank is one of 12 Federal Home Loan Banks in the United States. Together, the Federal Home Loan Banks represent one of the largest sources of private affordable housing funding in the country.

This press release contains forward-looking statements regarding events that may impact the bank's future financial performance. Forward-looking statements are subject to known and unknown risks and uncertainties. Actual performance may differ materially from projections because of many factors. Such factors may include, but are not limited to factors that affect the Seattle Bank's net income, including without limitation demand for advances, business and capital plan adjustments, changes in the bank's management and Board of Directors, regulatory actions or approvals, competitive pressure from other Federal Home Loan Banks and alternative funding sources, accounting adjustments or requirements, interest rate volatility, the bank's ability to maintain adequate capital levels, changes in projected business volumes, our ability to appropriately manage our cost of funds, changes in our membership profile or the withdrawal of one or more large members, the cost-effectiveness of our funding, hedging, and asset-liability management activities, shifts in demand for our products and consolidated obligations, and general economic conditions. Additional factors are discussed in the Seattle Bank's annual report, available at www.fhlbsea.com. The Seattle Bank does not undertake to update any forward-looking statements made in this announcement.