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SunTrust Selected for New Markets Tax Credit Allocation

PRNewswire-FirstCall
ATLANTA
Nov 5, 2008

SunTrust Banks, Inc. has been selected by the U.S. Treasury Department's Community Development Financial Institutions Fund to receive $50 million in tax credit allocation authority in the 2008 round of the New Markets Tax Credit (NMTC) Program. The company's subsidiary, SunTrust Community Development Enterprises, LLC, was one of 70 recipients receiving awards totaling $3.5 billion. This latest allocation to SunTrust is in addition to $175 million in previous rounds of which SunTrust has deployed $96.3 million. This is the third year SunTrust has been selected as a recipient.

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 continue to make loans and investments with reduced interest rates and/or non-traditional terms and conditions.

"SunTrust is extremely proud of its success in the New Markets Tax Credit industry and this new award is testimony to that success. The communities that we serve here at SunTrust will continue to grow and thrive as a result of these important investments," said Chris McGillis, President of SunTrust Community Capital, LLC. "SunTrust has distinguished itself among financial institutions within the New Markets Tax Credit industry by supporting the broadest range of both project type and project size. These additional resources allow us to expand our efforts to offer non-traditional financing in low-income communities. 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 capital investment, 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 September 30, 2008, SunTrust had total assets of $174.8 billion and total deposits of $115.9 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, investment management, equipment leasing and capital markets services. SunTrust's Internet address is www.suntrust.com

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SOURCE: SunTrust Banks, Inc.

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