Colonial Bank Expands Hurricane Relief Efforts.

MONTGOMERY, Ala. -- Colonial Bank (NYSE:CNB) has committed up to $10 million in recovery relief loans for homeowners suffering property damage from Hurricane Ivan. With proof of insurance and a FEMA claim number, customers can receive a home equity line of credit up to $25,000 per household at no interest through December 2004.(1)

"We're pleased to provide assistance for property owners to expedite their home repairs," said Patti Hill, Colonial's Executive Vice President of Retail Banking. "As a bank committed to its community, we believe it's our responsibility to assist in every possible way."

The disaster repair home equity program is open to all qualified homeowners affected by Hurricane Ivan. Interest-only payments are deferred until January 2005.

Colonial BancGroup is a $17.6 billion multistate bank holding company headquartered in Montgomery, Alabama, with more than 297 locations in Florida, Alabama, Georgia, Nevada, Tennessee and Texas. It is traded on the New York Stock Exchange under the symbol CNB, listed in most newspapers as ColBgp, and located on the Internet at www.colonialbank.com. Colonial Bank member FDIC and Equal Housing Lender.

(1) Until January 2, 2005, Annual Percentage Rate (APR) is 0% and monthly payments are deferred. On January 2, 2005, the APR will vary and will equal The Wall Street Journal Prime Rate plus a margin. Currently, the Prime Rate is 4.50%, and the margin is as low as 0%. Rates may be higher based on credit history. After January 2, 2005, the APR may change on the first day of each monthly billing cycle and monthly payments will resume. The maximum APR is 18%. Colonial Bank will pay all closing costs (except for hazard insurance premiums) if the initial advance is at least $10,000. Annual $75 maintenance fee is waived first year only. Minimum loan amount is $10,000. Any remaining balance is due in full at the end of 15 years. Available only for one-to-four family residential properties. Line must be secured by a first or second mortgage. Not available if home equity line of credit at another financial institution exists. Subject to credit approval and other underwriting requirements. Existing Colonial Bank lines are nontransferable. Offer valid through November 30, 2004.