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SunTrust Selected by Treasury Department for $100 Million New Markets Tax Credit Allocation

PRNewswire-FirstCall
ATLANTA
Oct 10, 2007

SunTrust Banks, Inc. has been selected by the U. S. Treasury Department's Community Development Financial Institutions Fund to receive $100 million in tax credit allocation authority in the 2007 round of the New Markets Tax Credit (NMTC) Program. The company's subsidiary, SunTrust Community Development Enterprises, LLC, was one of 61 recipients receiving awards totaling $3.9 billion. This latest allocation to SunTrust is in addition to $75 million in a previous round of which SunTrust has deployed $73.7 million.

The NMTC Program is designed to attract private-sector capital investment into the nation's urban and rural low-income areas to help finance community development projects, stimulate economic growth and create jobs.

The award will allow SunTrust to make loans and investments, starting in the first quarter of 2008, with reduced interest rates and/or non-traditional terms and conditions.

"SunTrust is proud to continue building on its success in the New Markets Tax Credit industry and is eager to begin using this new award to help strengthen the communities we serve," said Walter Mercer, executive vice president of Real Estate Finance at SunTrust Bank. "This resource will allow us to expand our efforts to offer non-traditional financing in low-income communities across a broader range of project types. The New Markets Tax Credit Program enhances our capabilities as a leading provider of community development financial solutions to clients throughout the Southeast and Mid- Atlantic. Our clients' efforts, supported by this infusion of capital, will create jobs and economic opportunities in areas of severe economic distress."

The NMTC program, established by Congress in December of 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven- year period. Substantially all of the taxpayer's investment must in turn be used by the CDE to make qualified investments in low-income communities.

SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. As of June 30, 2007, SunTrust had total assets of $180.3 billion and total deposits of $122.9 billion. The Company operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states and a full array of technology-based, 24- hour delivery channels. The Company also serves customers in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the Company provides mortgage banking, insurance, brokerage, equipment leasing and capital markets services. SunTrust's Internet address is suntrust.com

First Call Analyst:
FCMN Contact: hugh.suhr@suntrust.com

SOURCE: SunTrust Banks, Inc.

CONTACT: Hugh Suhr, SunTrust Banks, Inc., +1-404-827-6813