A Note to Our Depositors about the Financial Environment and Key With the financial services industry making daily headlines, it's understandable that Key's clients have questions and concerns. Fortunately, we can confidently say that Key remains a safe place for our clients' money and business. The following information offers perspective on the current situation. Key is in a solid financial position. While the financial services industry certainly is under pressure, Key is in a solid financial position. We want to assure you that Key is a strong, "well-capitalized" bank, and we believe our depositors' funds are not in any jeopardy whatsoever. Key has the funding and capital it needs. During 2008, Key successfully raised $4.24 billion in new capital with two transactions: An oversubscribed $1.74 billion offering of common and preferred shares in June, and we added $2.5 billion in new capital in November as a partici- pant in the U.S. Treasury’s Capital Purchase Program. In the aggregate, Key raised a total of $8.0 billion in term debt and equity during 2008, to fortify the company for challenging markets in 2009. The equity capital infusions raised Key’s regulatory ratios at year-end levels considerably above the “well capital- ized” industry thresholds. The company’s Tier 1 ratio increased to 10.81 percent at year-end, up from 8.55 percent the previous quarter. We are one of the nation's largest bank-based financial service companies, with assets of approximately $105 billion. We are ranked number 321 on the Fortune 500. We are well diversified, both in our business mix and our geographical reach. Key's strength has been affirmed by major credit rating agencies. We continue to be rated "investment grade" by the four primary credit rating agencies. And our long-term deposit ratings are "A1" from Moody's, "A" from Standard and Poor's and "A+" from Fitch Ratings. Deposits held at KeyBank are FDIC-insured up to applicable limits. The head of the FDIC has said that no insured depositor has ever lost a penny of FDIC-insured deposits. We can add that, throughout Key's 183-year history, no depositor has ever lost money with Key. You can determine the insurance coverage on your account(s) at KeyBank by reading the FDIC brochure, "Insuring Your Deposits." The brochure is available online at www.fdic.gov. You also can calculate your FDIC deposit insurance cov- erage by using the agency's Electronic Deposit Insurance Estimator, which is available online at www.fdic.gov/edie. We have a very long history Through its predecessor banks, KeyBank has been in business since 1825. There have been many difficult economic cycles in that time, and KeyBank has always been able to honor the needs of its depositors. No depositor has lost even a dime with KeyBank, and we pledge to continue that record. This document contains forward-looking statements, including statements about our financial condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management's current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Key's control. Key's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that may cause actual results to differ materially include, among other things: (1) changes in interest rates; (2) changes in trade, monetary or fiscal policy; (3) continued disruption in the fixed income markets; (4) adverse capital markets conditions; (5) continuation of the recent deterioration in general economic conditions, or in the condition of the local economies or industries in which we have significant operations or assets, which could, among other things, materially impact credit quality trends and our ability to generate loans; (6) continued disruption in the housing markets and related conditions in the financial markets; (7) increased competitive pressure among financial services companies due to the recent consolidation of competing financial institutions and the conversion of certain investment banks to bank holding companies; (8) heightened legal standards and regulatory practices, requirements or expectations; (9) the inability to successfully execute strategic initiatives designed to grow rev- enues and/or manage expenses; (10) increased FDIC deposit insurance premiums; (11) consummation of significant business combinations or divestitures; (12) opera- tional or risk management failures due to technological or other factors; (13) changes in accounting or tax practices or requirements; (14) new legal obligations or liabilities or unfavorable resolution of litigation; and (15) disruption in the economy and general business climate as a result of terrorist activities or military actions. For additional information on KeyCorp, consult Key's filings with the Securities and Exchange Commission that are available on the Securities and Exchange Commission's website (www.sec.gov).