'The Dawn of a New Era in Financial Services Beginning Today'; AAL Bank and Trust, FSB, A Response to Recent Changes in Banking Industry.

Business Editors

APPLETON, Wis.--(BUSINESS WIRE)--May 3, 2001

A 31,000-square-foot bank on Appleton's north side will help reshape the way banking is done in the Fox Cities. Ground was broken today for AAL Bank and Trust, FSB, a new venture of Aid Association for Lutherans (AAL).

The bank, to be located at 2000 E. Milestone Drive, is the first construction project in a new office park being developed east of Ballard Road directly across from AAL's home office grounds. Construction on the two-story bank begins in June. The bank is scheduled to open in spring 2002.

"AAL Bank and Trust will be unlike any other bank in the Fox Cities," said Richard Jodarski, president of AAL Bank and Trust. "Customers will have many options when it comes to accessing bank services. Each customer will decide what best fits his or her needs. We will not ask them to conform to what is convenient only for the bank."

Customers will not find a traditional, stand-up teller line, Jodarski said. Instead, personal bankers sitting at desks will provide more relaxed, one-on-one service. Video tellers and traditional bank drive-through service also will be available.

In addition, the bank will include a coffee bar, a lounge area with Internet-connected computers and a play area for children. It will offer customers across the country the opportunity to bank by mail, telephone and the Internet.

"The bank will draw on AAL's rich tradition of providing exceptional customer service," said Kristi Matus, project director for the AAL banking initiative. "No matter where you live in the country, our customers will get the hometown service and care they deserve. Customers always will feel at home, whether it's in our new building or over the phone working with one of our talented staff."

AAL, through its wholly owned subsidiary AAL Trust Co., FSB, received conditional approval in April from the Office of Thrift Supervision (OTS) to become a full-service bank. AAL Trust Co. is a for-profit business serving the general public. It will become a department within the bank when the bank opens in early June. Initially, financial centers will be located at 125 N. Superior St. and 4321 N. Ballard Road.

AAL chose to embark on this new venture as a result of the Financial Services Modernization Act of 1999, which repealed the Depression-era law that limited financial services consolidation between commercial banks, investment banks and insurers.

AAL currently sponsors two credit unions: the AAL Member Credit Union, which serves 46,000 members, and the AAL Credit Union for employees, which serves 6,000. The boards of directors for both credit unions have recommended that members approve dissolution of the two credit unions. In addition, the credit unions are encouraging that members transfer accounts to AAL Bank and Trust. If dissolution is approved, the credit unions will sell all loan assets to AAL Bank and Trust.

"The formation of AAL Bank and Trust truly is the dawn of a new era for financial services in the Fox Cities and across the country," Matus said.

The new bank will be state-of-the-art, both inside and out, said Pete Rohe, assistant vice president, AAL Facilities Management. The building's exterior will consist of masonry and tinted glass. "The glass system includes design elements called light shelves that promote energy conservation by letting in a large amount of light while controlling glare," Rohe said.

"The light shelves bounce the light up against the ceiling to provide an evenly lit office area and to limit the amount of time the artificial lighting will need to be used in the perimeter offices."

Interior energy-saving systems include occupancy sensors that will automatically shut off lights when an office or conference room empties. The bank also will have a high-tech security system with vibration sensors. Security operations will be monitored within the bank and also from AAL's home office.

AAL, a Fortune 500 organization based in Appleton, Wis., is a fraternal benefit society of 1.8 million members who join together for insurance, educational and volunteer opportunities. Investment products are offered through AAL affiliates.