Colonial Bancgroup Announces Increase in Dividend and Extension of Share Repurchase.

Business Editors

MONTGOMERY, Ala.--(BUSINESS WIRE)--April 19, 2000

Colonial BancGroup, Inc. (NYSE:CNB) Chairman and CEO Robert E. Lowder announced that a regular quarterly dividend of $0.11 per share of Colonial BancGroup common stock was declared at the board of directors meeting held today. The board of directors approved the payment of dividends on May 12, 2000 to shareholders of record as of April 28, 2000.

Mr. Lowder also announced that the directors authorized the repurchase of additional shares of BancGroup's common stock up to a maximum of 2,500,000 shares. The board of directors approved the repurchase of 2,500,000 shares at its meeting on January 19, 2000. Today's action brings the number of shares authorized for repurchase to 5,000,000. Any repurchases will be subject to certain restrictions of applicable federal and state securities laws, including the Rules and Regulations of the Securities and Exchange Commission. The shares may be used for various corporate purposes including use in acquisitions and fulfillment of obligations under various benefit and stock option plans.

Colonial BancGroup currently operates 237 over offices in Alabama, Florida, Georgia, Tennessee, Texas and Nevada and its common stock is traded on the New York Stock Exchange under the symbol CNB. In most newspapers the stock is listed as ColBgp.