Year 2000 Readiness Disclosure

Lee Bank & Trust Company began implementation of its Year 2000 Project Plan in 1997. All Year 2000 efforts are progressing on schedule, and Lee Bank & Trust Company is following the FFIEC (Federal Financial Institutions Examination Council) Interagency Guidance related to Year 2000 issues. Customers have been kept informed of the bank's Year 2000 plans by two mass mailings that were done in 1998 and 1999. Year 2000 information is also available at any of our bank's offices. Select groups of business customers have been surveyed to ensure that they, too, are addressing Year 2000 issues.

The bank's core system software for customer processing, Jack Henry & Associates' CIF 20/20, is Year 2000 compliant. It has been tested for compliance by both the vendor and banks that use the software. Testing has included actual processing of dates and transactions in the Year 2000. Lee Bank & Trust Company has conducted a complete inventory and assessment of all its Year 2000 sensitive systems. In addition to its core processing system, the bank has verified Year 2000 compliance with vendors of other software it uses. Lee Bank & Trust Company completed testing of all "mission-critical" and "non-mission critical" systems by June 30, 1999, in accordance with regulatory guidelines.

We have also developed a detailed Year 2000 Business Resumption Contingency Plan that will allow us to still operate should any of our "mission critical" systems fail because of some Year 2000 related problem. We will be conducting tests of this Contingency Plan during the third quarter of 1999.

The banking industry continues to be recognized as taking the lead in Year 2000 preparations. Lee Bank & Trust Company is no exception. We are taking whatever steps necessary to assure that the high level of service the bank has been known for, will continue into the next millennium

Additional helpful information can be viewed at the FDIC Y2K site .