Colonial Bank Organizes Hurricane Relief Efforts, Offers Special Services for Storm Victims.

MONTGOMERY, Ala. -- Colonial BancGroup (NYSE:CNB) announced today that it will begin accepting donations for the American Red Cross Hurricane Katrina relief efforts at all Colonial Bank branch offices throughout the company's five-state footprint.

"The devastation left in the wake of Hurricane Katrina has made an indelible mark on our employees and the people in the communities we serve. The Colonial family is proud to assist the American Red Cross with their disaster relief efforts," said Robert E. Lowder, chairman of the board and CEO of Colonial BancGroup.

In addition, to show its commitment to helping rebuild our communities, Colonial is offering selected products and services to support customers and residents in the emergency relief areas. The bank has committed up to $10 million in recovery relief loans for homeowners suffering home damage from Hurricane Katrina.

With proof of insurance and a FEMA claim number, customers can receive a home equity line of credit up to $40,000 per household at zero interest and no payment for 90 days. The disaster repair home equity program is available to qualified customers through December 2005.

"We are pleased to provide assistance for property owners to expedite their home repairs," said Patti Hill, senior executive vice president of Retail Banking. "As a bank committed to the communities it serves, Colonial believes it is our responsibility to assist in every possible way."

The disaster repair home equity program is available through December 2005 to qualified customers and residents in FEMA-designated areas of Alabama including Baldwin, Mobile and Washington counties. Colonial also is extending the offer to qualified customers and residents of Escambia County, Ala., and Okaloosa and Walton counties in Florida.

Colonial is offering disaster relief and loan extension and payment options. Temporary payment relief is available to qualified customers in the affected areas to help them work through rebuilding facilities, homes and businesses. In addition, qualified Colonial Credit Card customers in hurricane-affected areas can defer their September payment. For more information on accessing these special services, customers should contact their local Colonial Bank office.

Colonial Bank, working through its check provider Clarke American, also will provide one box of checks at no charge to personal and business customers who lost their checks in the storm. Personal banking customers should call Service Line Plus at [phone]; business customers should call Expert Solution at [phone].

Customers who lost debit and/or credit cards in the storm should call Colonial Connection at [phone] to report their cards lost and to request replacement cards.

At the height of the hurricane, approximately 75 offices in Florida and Alabama were affected by the storm. "Thanks to our business continuity plan and the hard work of our employees, we successfully restored operations in all branches within a short period of time after the event," Hill said. "We are appreciative of the response from our area utility providers and other governmental agencies for their role in helping us get Colonial Bank branches restored in order to serve our customers."

About Colonial BancGroup Inc.

Colonial BancGroup Inc. is a $20.9 billion bank holding company operating 309 banking offices in Florida, Alabama, Georgia, Nevada and Texas. The company's common stock is traded on the New York Stock Exchange under the symbol CNB. Additional information about Colonial can be found at www.colonialbank.com.