The annualized dividend rate is lower than previous third quarter guidancebecause of recent volatility in the financial markets and a more conservativefinancial management approach in light of these conditions. In addition, theBank will change its dividend declaration and payment schedule beginning inthe fourth quarter of 2008 so a dividend can be declared and paid to memberaccounts after net income is calculated for the preceding quarter. Toaccommodate this change, the Bank will declare any fourth quarter dividend atthe end of Jan. 2009 and pay it into member accounts at that time.

The Bank recognizes the value our dividend provides to member financialinstitutions. During the first three quarters of 2008, the Bank has paid anannualized dividend rate of 4.88 percent, which exceeds average three-monthLIBOR by approximately 190 basis points. "Dividends are an attractive aspectof our cooperative, and we anticipate that once we move beyond this transitionperiod, members will appreciate the certainty associated with the new dividendschedule," said Richard A. Dorfman, President and CEO of FHLBank Atlanta.

If you have additional questions, please contact FHLBank Atlanta's FundingDesk at 1.800.536.9650, ext. 8011.

About FHLBank Atlanta

The Bank is a cooperative financial services organization that providesfunding, community development products, and a host of other banking servicesto more than 1,200 member financial institutions in Alabama, Florida, Georgia,Maryland, North Carolina, South Carolina, Virginia, and the District ofColumbia.

Some of the statements made in this announcement are "forward-lookingstatements," which include statements with respect to FHLBank Atlanta'sbeliefs, plans, objectives, goals, expectations, anticipations, assumptions,estimates, intentions, and future performance, and involve known and unknownrisks, uncertainties and other factors, many of which may be beyond FHLBankAtlanta's control, and which may cause the Bank's actual dividend payment,results, performance or achievements to be materially different from thefuture results, performance or achievements expressed or implied by theforward-looking statements.

The forward-looking statements may not be realized due to a variety offactors, including, without limitation: the FHLBank Atlanta's actual netincome results; legislative and regulatory actions or changes; future economicand market conditions; changes in demand for advances or consolidatedobligations of FHLBank Atlanta and/or the FHLBank System; changes in interestrates; political, national and world events; and adverse developments orevents affecting or involving other Federal Home Loan Banks or the FHLBankSystem in general. Additional factors that might cause FHLBank Atlanta'sresults to differ from these forward-looking statements are provided in detailin our filings with the Securities and Exchange Commission, which areavailable at www.sec.gov .

SOURCE Federal Home Loan Bank of Atlanta