Cash is King -- But Not for All Business Owners; Guaranty Bank Study Reveals Potential Weakness for Small/Medium (SMB) Businesses That Lack a Cash Management Strategy.

DALLAS -- Nearly one in four SMB decision makers in Texas and three in ten SMB decision makers in California admit they do not have a cash management strategy. While cash may be the lifeblood of commerce, these owners and decision makers appear to be more focused on other aspects of their business -- such as revenue growth or introducing new products -- than on the basics of cash management.

The study, conducted by Guaranty Bank, surveyed 485 SMB decision makers in major markets in Texas and California. The line between a company's success and failure is often marked by the ability of senior management to understand their cash flow and use their cash positions strategically. Successful SMB managers know exactly where they are on a day-to-day basis and take full advantage of tools and services that give them accurate information on their transactions and balances as well as greater control and efficiency both in making and receiving payments.

"Small businesses should be using basic services such as Internet Banking to view account balances, verify transaction details, or pay bills," says Scott Martin, Vice President, Guaranty Bank Treasury Management Services. "Larger companies often use these tools plus wire transfers, Automated Clearinghouse (ACH) payment services and wholesale lockboxes."

The study shows the three most pressing needs in terms of improving overall cash management are increasing the speed of collections, gaining better control of cash outflow, and maximizing return on idle cash. SMB decision makers that do not have a cash management strategy would benefit from a conversation with their banker to learn more about the products and services available to address these needs. For example, a Zero Balance Account (ZBA) can provide centralized control over available cash. A Sweep Investment Account, which automatically moves idle funds into an interest-earning account, provides a greater return on idle cash.

"As your company grows, your cash management needs become more complex," notes Martin. "If you don't know where to start, talk with your banker to find out which options are right for your situation," he recommends. "Ultimately these products and services are designed to make it easier for you to manage your business."

About Guaranty Bank

Guaranty Bank, with $16 billion in assets, is owned by Temple-Inland Inc., a Fortune 500 company with interests in financial services, forest products and corrugated packaging. Guaranty Bank is a member of the FDIC and an Equal Housing Lender.

The bank and its affiliates are owned by Temple-Inland Inc., a Fortune 500 company. Temple-Inland is a major manufacturer of corrugated packaging and forest products, with a diversified financial services operation. The company manages its 2 million acres of forestland in accordance with the Sustainable Forestry Initiative (SFI) SM program of the American Forest & Paper Association to ensure that forest management is conducted in a scientifically sound and environmentally sensitive manner. Temple-Inland's common stock (TIN) is traded on the New York Stock Exchange and the Pacific Exchange. Temple-Inland's address on the World Wide Web is www.templeinland.com.

Note to Editors:

A media summary of this research is available from Guaranty Bank by calling Tiffany Dixon at 214-520-7550 or by e-mail to [e-mail].