Colonial BancGroup Completes Union Bank of Florida Acquisition.

MONTGOMERY, Ala. -- Colonial BancGroup (NYSE:CNB) Chairman and CEO Robert E. Lowder announced that the Company completed its acquisition of the stock of Union Bank of Florida (Union), on February 10th. The merger of Union, headquartered in Sunrise, Florida (Broward County) into Colonial Bank was also completed yesterday. The acquisition brings Colonial's Florida franchise to $6.7 billion in deposits and $10.2 billion in assets, or 54% of the Company's total deposits and 51% of its total assets, respectively, in the Sunshine State. The Union transaction coupled with Colonial's previously announced plan to acquire FFLC Bancorp, Inc. in Leesburg, Florida, is expected to make Colonial the fifth largest commercial bank in Florida when completed in the second quarter of 2005.

Additionally, the merger with Union increases Colonial's South Florida region to 45 branch locations with $2.8 billion in deposits and $3.4 billion in assets in the densely populated areas of Palm Beach, Broward and Miami-Dade counties.

Colonial BancGroup, a multi-state bank holding company headquartered in Montgomery, Alabama, has assets of approximately $20 billion and operates 309 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.