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For Immediate Release
January 14, 2004

AUSTIN, TX - Farm Credit Bank of Texas (FCBT), a $7.3-billion rural lender, has established a capital markets group to originate and invest in large syndicated loan transactions.

Partnering with commercial banks, insurance companies and other Farm Credit institutions, the Austin-based bank will buy and sell participations in national and multinational agribusiness firms, timber companies, rural utilities and rural telecommunications providers. The bank also provides financing directly to borrowers.

"We have selected a team of highly talented, seasoned lenders to be the bank's earnings engine in the capital markets arena," said Larry Doyle, FCBT chief executive officer. "With their extensive experience handling syndicated transactions in the agribusiness, food and utility sectors, they will play a key role in helping Farm Credit Bank of Texas reach its goal of a $2 billion capital markets portfolio."

The new FCBT capital markets group includes four capital markets officers, who also will serve as vice presidents. They are Isaac E. Bennett, previously with AgFirst Farm Credit Bank, Columbia, S.C.; Horace R. Harrod, most recently with CoBank, Denver, Colo.; Eric J. Paul, formerly employed by Bank of America, Charlotte, N.C.; and Luis H. M. Requejo, previously with Harris Bank in Chicago.

Farm Credit Bank of Texas issued more than $250 million in loan commitments to customers nationwide during the fourth quarter of 2003.

The 87-year-old Farm Credit Bank of Texas is owned by 21 rural financing cooperatives. Together, these institutions are one of the largest sources of needed liquidity and financial solutions for rural America.

At Sept. 30, 2003, Farm Credit Bank of Texas had $6.1 billion in loans outstanding, $393.2 million in capital and $7.3 billion in assets. Net income totaled $9.3 million and $25.5 million for the quarter and nine months ended Sept. 30, 2003, respectively. In November, the bank issued $100 million in preferred stock to support its recent growth and increase its risk management capacity.