December 13, 2005

Mr. Al Huntley, Chair of the Board of Directors of SAFECU Credit Union, and Mr. Peter Galloway, Chair of the Board of Directors of Capital City Savings, announced that their Boards have passed resolutions recommending an amalgamation of the two credit unions.

The terms of the amalgamation agreement will be presented to the members of SAFECU Credit Union at a Special Membership Meeting on January 11, 2006. If approved by the members, SAFECU Credit Union and Capital City Savings will formally amalgamate on November 1, 2006. SAFECU will join a credit union formed by the amalgamation of Capital City Savings and Servus Credit Union that is effective the same date. Servus Credit Union will be the name of the proposed new credit union as of that date.

"SAFECU Credit Union has been studying amalgamation for some time and we concluded Capital City Savings represents the best opportunities for our members and our employees," stated Mr. Huntley of SAFECU. "As well as a larger branch network that overlaps the area where our members live and work, Capital City Savings can give our employees enhanced training and promotional opportunities."

The new credit union will operate under the name of Servus Credit Union as of November 1, 2006. All current SAFECU, Servus and Capital City Savings employees will remain part of the amalgamated credit union. The new credit union will be the largest in Alberta with nearly $3 billion in assets and 181,000 members. Approximately 800 employees will provide members with financial services through a network of 48 locations serving 26 central and northern Alberta communities.

"We are pleased to welcome the members and employees of SAFECU to our credit union family," said Mr. Galloway. "The proposed Servus Credit Union will embrace the legacies of more than 60 Alberta credit unions, each of which has loaned its strength to an organization that continues to embrace service, local ownership, integrity and community support."

"Our members are looking forward to the expanded range of products and services that a larger organization can offer," stated Mr. Rick Kapty, General Manager of SAFECU Credit Union. "SAFECU members live across Alberta, so they will benefit immensely from the large Capital City Savings branch network, plus sophisticated services like trust and estate planning."

Servus Credit Union and Capital City Savings announce intent to amalgamate

The Boards of Servus Credit Union and Capital City Savings and Credit Union announce that they have passed resolutions recommending an amalgamation of the two credit unions. The terms of the amalgamation agreement will be presented to the members of Servus Credit Union at a Special Membership Meeting on January 19, 2005.

If approved by the members, Servus Credit Union and Capital City Savings will formally amalgamate on November 1, 2006. Servus will join a credit union formed by the recent amalgamations of Capital City Savings, Yellowhead Credit Union, Wildrose Credit Union and Clover Bar Credit Union.

"Servus Credit Union saw the opportunity to join with Capital City Savings as a means to create a new credit union with more advantages for members, employees and the communities we serve," said Mr. Denis Richer, President of the Board of Directors of Servus Credit Union. "We are shaping modern day credit unions as organizations that come together to benefit from the efficiency of size without ever losing the unique qualities that make a credit union special - local ownership, sharing our profits and serving our members with the very best products and personal service."

Servus decided to partner with Capital City Savings because of greater learning and promotional opportunities for employees, more access for member-owners who travel to other areas of Alberta and the sharing of resources, including a dedicated call centre, state of the art information technology and employee learning centre.

The new credit union will operate under the name of Servus Credit Union, with regional representation on the Board of Directors. All current Servus and Capital City Savings employees will remain part of the amalgamated credit union. As of November 1, 2006, the new credit union will be the largest in Alberta with nearly $3 billion in assets and 179,000 members. Approximately 800 employees will provide members with financial services through a network of 47 locations serving 26 central and northern Alberta communities.

"Years of careful planning and hard work at Servus and Capital City Savings have created loyalty amongst our members that is the envy of the banking community. We don't take that for granted; we intend to make the experience of dealing with us even more positive, more financially beneficial," said Mr. Peter Galloway, Chair of Capital City Savings. "In agreeing to change our name to Servus Credit Union, we will let more people know about our superior service, and that we remain a credit union with roots in the communities where we live and work."

"The cultures at Servus and Capital City Savings are similar - we both tend to make decisions by asking ourselves if the outcome is good for the members, good for the employees, good for the credit union and good for the communities we serve," stated Mr. Ray Duchesneau, CEO of Servus Credit Union. "As we reviewed this amalgamation, we answered yes in all cases. Our members will receive the best in branch location convenience and service levels while the staff can take advantage of improved career opportunities and superior training."

Significant benefits expected from the proposed amalgamation, include:

• Continued banking services in communities and neighbourhoods assured by a stronger credit union with almost $3 billion in assets

"This amalgamation is not about today - it is all about tomorrow, the future! We are about to create a new credit union, one that is strong with solid values and is 100% owned by Albertans," explained Mr. Harry Buddle, President and CEO of Capital City Savings.