AmSouth Offers Disaster Relief to Customers Affected by Hurricane Katrina

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Aug. 31, 2005--In response to the serious human need in areas affected by Hurricane Katrina, AmSouth Bank (NYSE: ASO) has announced a package of disaster relief offers to assist consumer and small business customers affected by the storm. The offers give AmSouth customers in the affected areas flexibility on loan repayments, discounted loan rates, and fee waivers.

The company also plans to make a contribution to the American Red Cross Disaster Relief Fund and will accept individual contributions to the fund at all of its branches.

“As the 'Relationship People,' we are focused on meeting our customers' needs, particularly during difficult times like these. Our hearts go out to the people who have suffered loss because of this storm.”

The special offers for consumers and small business customers in the affected areas, available for a limited time, include:

-- ATM Fee Waivers - AmSouth will waive its ATM fee for customers using other banks' ATMs in the affected areas.

-- Skip-A-Payment - Customers with an AmSouth home equity line of credit in an affected area who qualify will receive a message on their next statement that no minimum payment is due. Plus, customers with an AmSouth installment loan may apply to skip their next payment with no extension fee by calling 1-800-AMSOUTH.

-- Mortgages - Consumers may apply for an array of competitive mortgage products, including affordable housing programs featuring little to no down payment and requiring no mortgage insurance.

-- Home Equity Line of Credit - Consumers may apply for a home equity line of credit with a variable interest rate that equals Prime minus .50% (currently 6.00% APR). This rate is good for the life of any transaction that posts in the first 30 days. Variable rates as low as Prime minus .25% (currently 6.25% APR) are available for transactions that post after 30 days(a). In addition, customers receive a $100 cash bonus with a new AmSouth Home Equity Line of Credit(b).

-- Special Unsecured Installment Loan Offer - Consumers in areas affected by Hurricane Katrina who qualify for an unsecured loan will receive a special rate with no loan processing fee.

-- Special Business Loan Program - Discounted loan rates are available for customers directly affected by the storm for working capital, construction or remodeling.

-- Special Business Loan Payment Assistance - Small business customers directly affected by the hurricane may request a 30-day extension for loan repayment.

-- Special FlexLine Skip-a-Payment - Business customers with a FlexLine who were directly affected by the hurricane may be allowed to skip one monthly payment on request.

AmSouth also recognizes that circumstances such as those caused by Hurricane Katrina can result in unintended situations where customers may find their accounts in an insufficient funds status. The bank encourages its customers to contact AmSouth to discuss those situations.

According to AmSouth Chairman, President and Chief Executive Officer C. Dowd Ritter, AmSouth is working hard to aid the recovery. "We want to help our customers and businesses that are located in the affected areas get back on their feet as quickly as possible," he said. "As the 'Relationship People,' we are focused on meeting our customers' needs, particularly during difficult times like these. Our hearts go out to the people who have suffered loss because of this storm."

Except for branches in the hardest hit areas, AmSouth anticipates reopening virtually all closed branches on Wednesday. AmSouth will update the status of its branches throughout the coming days on www.amsouth.com under the Hurricane Katrina Update. Customers can also call 1-800-AMSOUTH for the most up-to-date information on the locations of open branches. Many banking services - such as balance inquiries, transferring funds between accounts and paying bills - are also available at www.amsouth.com or through our TeleBanking Center at 1-800-AMSOUTH.

About AmSouth

AmSouth is a regional bank holding company with $50 billion in assets, more than 685 branch banking offices and 1,240 ATMs. AmSouth operates in Florida, Tennessee, Alabama, Mississippi, Louisiana and Georgia. AmSouth is a leader among regional banks in the Southeast in several key business segments, including consumer and commercial banking, small business banking, mortgage lending, equipment leasing, and trust and investment management services. AmSouth also offers a complete line of banking products and services at its web site, www.amsouth.com.

(a) Prime minus .50% (currently 6.00% as of 8/26/05) is available on transactions that post to your home equity line of credit for the first 30 days the account is open. This rate may vary. To qualify for this special pricing, you must either open or have an existing AmSouth checking account. If your home equity line of credit balance becomes 61 days past due, the promotional rate of Prime - 1/2% will revert back to the standard rate, calculated as described below. On transactions that post after the first 30 days, the Annual Percentage Rate (APR) at 80% loan to value and first lien position is currently as low as Prime minus 1/4%, currently 6.25% as of 8/26/05, and may vary. The APR is based on the Prime Rate minus a discount or plus a margin. The Prime Rate is merely a reference rate. The APR for your home equity line of credit will be based on several factors including your credit history and may be higher than the rate set out above. The maximum APR is 18%, except in Florida where it is 17%. AmSouth may pay your closing costs and fees, based on line amount and initial advance. Closing costs are estimated to range between $150 and $1,500, depending on the amount of your home equity line. The annual fee of $50 is waived as long as you make at least one advance per year on your account. If you close your Credit Line Account during the first three years after the Opening Date for any reason other than the sale of your Property, a prepayment penalty will be imposed as follows: $300 in the first year, $200 in the second year and $100 in the third year (except in Louisiana). Consult your tax advisor regarding the deductibility of interest.

(b) Your cash bonus will be paid to you by either cashier's check or a credit to your home equity line account after your rescission period ends.

Offer and rates are subject to change without notice. Subject to credit approval. Some restrictions may apply. Contact your AmSouth Banker for details. Equal Housing Lender. Member FDIC.