The grant, paid over a three-year period, marks the first majorcontribution to NCLR's Campaign for Stronger American Communities intendedto strengthen the organization's affiliates, improve its programmaticoutreach, and enhance its effectiveness and impact by strategicallyfocusing financial, human and technical resources in the field on issues ofstrategic importance to Latino communities across the U.S., such aseducation. To support this work, NCLR is raising $15 million over the nextthree years.

"State Farm is a long-time partner of NCLR and has worked with us tostrengthen Latino communities by supporting our education programs," saidJanet Murguía, NCLR President and CEO. "This latest commitment takes thatwork to a new level and supports our outreach efforts through our nearly300 Affiliates. We're excited by the prospective impact these grants willhave on decreasing school drop-out rates and building future leaders."NCLR's Affiliates reach throughout 41 states Puerto Rico and the Districtof Columbia.

"It's vital that young members of this growing part of the Americancommunity attain the knowledge and skills that will allow them to be fulland equal participants in the economy," said Ed Rust Jr., State FarmChairman & CEO. "NCLR and State Farm share a vision that begins with makingsure our children stay in school and ends with all children achieving theirgreatest potential."

The announcement of the grant was made today at a partnership luncheonhosted by the National Council of La Raza (NCLR) for State Farm torecognize the long-standing support and contributions made to NCLR, thelargest national Hispanic civil rights and advocacy organization in theU.S. At the event, held at NCLR Headquarters in Washington, Ms. Murguíarecognized Mr. Rust for his corporation's support of NCLR's initiatives.

State Farm's commitment to NCLR, spans over a decade, including NCLR'scommunity efforts, annual conference, Capital Awards, the Raul YzaguirreBuilding Capital Campaign, and the NCLR ALMA Awards. Barbara Cowden,executive vice president at State Farm, sits on NCLR's Corporate Board ofAdvisors and is the Chair of NCLR's Education Task Force. As an earlycontributor to NCLR's "Empowering an American Community" campaign when itwas launched in 2002, State Farm's commitment was a cornerstone in NCLR'sefforts to strengthen its long-term institutional abilities. "Latinos havea growing role in our nation's future prosperity and well-being. At NCLR,we appreciate having such a dedicated and supportive partner as State Farmin our work to improve opportunities for Hispanic Americans," said Ms.Murguía.

The grant to NCLR is one of State Farm's major commitments under its "StateFarm Es Para Mí(TM)" campaign, which focuses on citizenship, civicengagement and education in the Latino community. Other education elementsinclude a directory of scholarships, internships and fellowships for Latinostudents and grant applications to non-profit organizations and publicschools for 200 grants of $1,000 each, (due November 4, 2008). For moreinformation, please call 1-877-564-3119 to find a participating State Farmagent.

About State Farm

State Farm® insures more cars and homes than any other insurer in theU.S., is the leading insurer of watercraft and is also a leading insurer inCanada. State Farm's 17,000 agents and 67,000 employees serve over 77million auto, fire, life and health policies in the United States andCanada, and more than 1.9 million bank accounts. State Farm MutualAutomobile Insurance Company is the parent of the State Farm family ofcompanies. State Farm is ranked No. 32 on the Fortune 500 list of largestcompanies. For more information, please visit statefarm.com® or in Canadastatefarm.ca®.

About State Farm Es Para Mí(TM)

The State Farm campaign "State Farm Es Para Mí(TM)" (State Farm Is For Me)is in collaboration with many community partners including the NationalAssociation of Latino Elected and Appointed Officials (NALEO), NCLR, andCongressional Hispanic Caucus Institute (CHCI). State Farm Es Para Mífocuses on three pillars important to the Hispanic community: U.S.citizenship, voter registration, and education. Bilingual information onU.S. citizenship, voter registration, and educational resources areavailable at participating State Farm Agents' offices. Contact1-877-564-3119 to locate a State Farm Agent!

About NCLR

The National Council of La Raza (NCLR) -- the largest national Hispaniccivil rights and advocacy organization in the United States -- works toimprove opportunities for Hispanic Americans. Through its network of nearly 300affiliated community-based organizations (CBOs), NCLR reaches millionsof Hispanics each year in 41 states, Puerto Rico, and the District ofColumbia. To achieve its mission, NCLR conducts applied research, policyanalysis, and advocacy, providing a Latino perspective in five key areas --assets/investments, civil rights/immigration, education, employment andeconomic status, and health. In addition, it provides capacity-buildingassistance to its Affiliates who work at the state and local level toadvance opportunities for individuals and families.

For more on NCLR, www.nclr.org

State Farm Insurance CompaniesAymee RuizEmail Contact786-897 7208NCLRMarie WatteauEmail Contact(202) 785-1670