November 14, 2003

To All Members of Capital City Savings and Credit Union Limited

I am very pleased to announce to all members of Capital City Savings that your Board of Directors has passed a unanimous resolution supporting an amalgamation with Yellowhead Credit Union Ltd. The terms of the agreement will be presented to the memberships of both credit unions early in 2004. If approved by the members, the proposed credit union will come into being by November 1, 2004, initially operating under the name of Capital City Savings with a blended Board of Directors.

This amalgamation presents great opportunities for both credit unions. A well-capitalized and progressive regional credit union has the opportunity to grow rapidly over the next ten years.  Greater resources will enable us to be more competitive. The proposed credit union will be the largest in Alberta with $2 billion in assets and over 153,000 members. The regional credit union will operate in 19 Alberta communities through a network of 35 locations.  The branch network will stretch from Fort McMurray to Devon and from Lamont to Jasper.

Yellowhead Credit Union is a strong organization with 70 employees, 15,000 members, seven branches and $197 million in assets.  The branches are in Drayton Valley, Entwistle, Hinton, Jasper, Sangudo, Stony Plain and Wabamun.  The credit union carries the same member service philosophy as Capital City Savings.

Doug Forsyth, General Manager of Yellowhead Credit Union will be appointed Regional Vice President. A regional administration office will be maintained in Stony Plain and a corporate office in Edmonton. All branches of both credit unions will remain open and all employees will become part of the new organization.

Over the next few months, the respective management teams will work out details of the amalgamation in preparation for the membership votes in early 2004. Should you have any questions pertaining to the proposed amalgamation, please contact the Board of Directors by calling (780) 496-2004.

This is an exciting opportunity. As a larger, stronger credit union is better for both our employees and members, I encourage you to help us communicate the benefits of the proposed amalgamation to our membership.

Sincerely,
Peter Galloway
Chairman, Board of Directors
Capital City Savings and Credit Union Limited