Colonial BancGroup Announces Forward Equity Transaction.

MONTGOMERY, Ala. -- Colonial BancGroup (NYSE: CNB) today announced a public offering of 8,400,000 shares of its common stock through Lehman Brothers Inc. as sole book-running manager in a forward sale transaction.

In connection with the forward sale agreement an affiliate of Lehman Brothers has agreed to borrow and sell 8,400,000 shares of Colonial's common stock, plus up to 1,260,000 additional shares to cover overallotments. Colonial will not receive any proceeds from the sale of its common stock until settlement of all or a portion of the forward sale agreement, which is scheduled to settle no later than November 23, 2005.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. A shelf registration statement has been filed and declared effective by the Securities and Exchange Commission. A prospectus supplement related to the public offering will be filed with the Securities and Exchange Commission. When available, copies of the prospectus supplement relating to the offering may be obtained from the offices of Lehman Brothers Inc., c/o ADP Financial Services, Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717.

Colonial BancGroup, a multi-state bank holding company headquartered in Montgomery, Alabama, has assets of $18.2 billion and operates 289 offices in Florida, Alabama, Georgia, Nevada and Texas and is traded on the New York Stock Exchange under the symbol CNB. In most newspapers the stock is listed as ColBgp.

Special Note Regarding Forward Looking Statements

The statements contained in this press release that are forward looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward looking statements involve risks and uncertainties that may affect the Colonial's business and the outcome of the transaction described in this press release. Some of these risks and uncertainties are described in the Company's prospectus related to this transaction.