Colonial BancGroup to Repurchase Shares.

Business Editors

MONTGOMERY, Ala.--(BUSINESS WIRE)--May 29, 2002

Colonial BancGroup (NYSE:CNB) Chairman and CEO, Robert E. Lowder, announced today that the company may repurchase up to 3,000,000 shares of BancGroup's common stock through block purchases and/or open market transactions. This repurchase was authorized in connection with a recent acquisition. Such shares may be reissued in future acquisitions or for other business purposes. Any repurchase would be subject to certain restrictions of applicable federal and state securities laws, including the Rules and Regulations of the Securities and Exchange Commission.

Merrill Lynch has been retained as a broker dealer to handle the proposed repurchase program.

Colonial BancGroup is a multi-state bank holding company headquartered in Montgomery, Alabama, operating 263 offices in Alabama, Florida, Georgia, Tennessee, Texas and Nevada. Its common stock is traded on the New York Stock Exchange under the symbol CNB and is listed as ColBgp in most newspapers.

Pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 the reader is cautioned that this announcement contains "forward looking statements" which are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.