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U.S. Bancorp Community Development Corporation Receives $135 Million New Market Tax Credit Allocation to Attract Investment in Distressed and Underserved Areas

ST. LOUIS--(BUSINESS WIRE)--June 1, 2006--St. Louis based U.S. Bancorp Community Development Corporation (USBCDC) has received a $135 million New Market Tax Credit allocation award from the U.S. Treasury's Community Development Financial Institutions (CDFI) Fund. With this award, USBCDC will provide equity, equity-like debt and favorable loan rates and terms to for-profit and non-profit developers for the development and rehabilitation of real estate, including office, industrial, retail, mixed-use, and community facilities.

Kathy Bader, chairman of U.S. Bancorp Community Development Corporation, said, "We are the largest New Market Tax Credit investor in the country because we believe in the economic and social benefits of this program. In many economically disadvantaged areas, it has been the impetus to get America to work, revitalizing factories, creating construction jobs and spurring small business."

Zack Boyers, senior vice president of U.S. Bancorp Community Development Corporation added, "This program has only been in effect for five years, but we can already point to several NMTC developments nationwide that sparked a return of viable urban neighborhoods where for years, many feared to tread. It has worked equally well in rural areas where the NMTC incentive helped a business to remain competitive by retooling so that it could continue to provide the jobs needed to keep the community intact."

With each project it undertakes, U.S. Bank will be able to offer construction financing leading to permanent financing as well as highly flexible capital products to maximize the NMTC benefit to the qualifying borrowers and investees.

This allocation, as well as a $60 million NMTC award to St. Louis based developer McCormack Baron, is part of a $4.1 billion NMTC package announced by the U.S. Treasury. The allocation awards included $600 million allocated specifically for the redevelopment of the Hurricane Katrina Gulf Opportunity Zone (GO Zone). Nationally, 63 organizations were selected from the 254 that applied. The NMTC program permits taxpayers to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs). Substantially all of the qualified equity investments must in turn be used by the CDE to provide investments in low-income communities.

About U.S. Bancorp's Community Development Corporation

With assets of nearly $2 billion, U.S. Bancorp's Community Development Corporation (USBCDC) is one of the largest New Market Tax Credit (NMTC) investors in the country. It also makes equity investments in low-income housing and historic tax credits. Both are subsidiaries of U.S. Bancorp (NYSE:USB), the sixth largest financial holding company in the United States, with assets of $210 billion. The Company operates 2,430 banking offices and 4,941 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services and products to consumers, businesses and institutions. U.S. Bancorp is the parent company of U.S. Bank. For further information, visit www.usbank.com.

CONTACT: U.S. Bancorp
Media Relations
Lisa Clark, 608-877-7517
Pager 888-437-8620

SOURCE: U.S. Bancorp Community Development Corporation

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding U.S. Bancorp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

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