Compass' Business Leaders Confidence Index for 3rd Quarter Predicts Economy to Continue Modest Improvement; Impact of Corporate Missteps and Bankruptcies Unknown.

Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--July 24, 2002

Alabama business leaders are cautiously optimistic that the state and national economies will continue to show moderate improvement, though they are slightly less certain of a rebound than they were in the second quarter, according to the Compass Bank (Nasdaq:CBSS) Business Leaders Confidence Index (BLCI) released today. Although still positive, the BLCI fell from 63 in the second quarter to 60 this quarter.

"I think the more conservative outlook is a direct reflection of the news that has rocked the financial markets during the past several months," said Dr. Carl Ferguson, director of the University of Alabama's Center for Business and Economic Research and director of the BLCI project. "It seems that a day does not pass that we do not learn of some accounting irregularity or other corporate misstep, and the markets are very volatile as a result. Keep in mind, too, that this survey was conducted pre-WorldCom and some of the other news that has recently come to light."

Sales are expected to show the most improvement during the third quarter, with about two-thirds of panelists forecasting sales increases in their industry. Profit growth will lag sales, as only half of respondents expect higher profits during the quarter. Capital spending should continue to rebound moderately. However, hiring will remain weak. Sales growth will likely be satisfied by productivity improvements and use of temporary workers until earnings rebound and confidence in a sustained economic recovery increases.

"The BLCI is beginning to establish itself as a reliable business barometer for both the state and national economies. The results of both the first and second quarter surveys have, indeed, come to fruition in the way the economy has performed," said George M. Boltwood, Compass' executive vice president and head of corporate banking. "The BLCI provides yet another useful tool for Alabama business leaders to utilize in managing their enterprises."

Complete results of the third quarter survey are available via the Internet at www.blcindex.com. Compass Bank is a subsidiary of Compass Bancshares, Inc., a Sunbelt-based financial holding company with $23.5 billion in assets and 343 full-service banking offices in Alabama, Arizona, Colorado, Florida, Nebraska, New Mexico and Texas. Compass is among the top 40 U.S. bank holding companies by asset size and ranks among the top earners of its size based on return on equity. The company's earnings per share have increased for 14 consecutive years and dividends per share have increased for 21 consecutive years. Shares of Compass' common stock are traded through the Nasdaq stock market under the symbol CBSS.