The recent financial headlines are full of dire economic news. The current financial crisis is severe and American's confidence in the financial system is shaken.

Recent bank failures, the stock market volatility and the need for a government bailout undoubtedly have consumers nervous. As members and consumers are losing confidence in sectors of the financial system we would like to point out a few key facts about Hamilton Horizons:

1. Hamilton Horizons is very safe and sound – HHFCU has no exposure to the bad investments that would be included in the Government bailout. Most of our assets are invested in our members in the form of member loans and the remaining assets are invested in Government backed bonds, insured credit unions or insured banks. Our Capital Ratio is over 13% which is well over the regulator’s minimum requirement of 7.00%. We are in absolutely no danger of failure and are not directly impacted by the current financial crisis.

2. National Credit Union Administration (NCUA) - Your share accounts are federally insured up to $250,000 by the NCUA (which is a $150,000 increase in coverage until December 31, 2009) and your IRA Accounts are federally insured up to an additional $250,000. Your funds are well protected. If you have further questions stop by and pick up a brochure or give us a call. You can also visit the NCUA website to learn more about your insured funds at www.ncua.gov.

3. Hamilton Horizons is not involved in Sub-Prime Mortgage Lending - we have never engaged in sub-prime mortgage lending. Sub-prime mortgages are generally described as mortgages to borrowers with low credit scores, are interest-only or Adjustable Rate Mortgages (ARM) loans with big payment adjustments, require little to no money down and in some cases didn't require proof of income. This has allowed millions of borrowers to purchase homes they may not have been able afford after the payment adjustment. In many cases when borrowers went to refinance or sell, the value of the home was lower and they couldn't refinance or sell for more than the mortgage balance, thus causing default. Hamilton Horizons does not have any of these loans. Hamilton Horizons is available to discuss options for members and encourage any member in this situation to call us and to act early if they are in financial trouble.

We want to assure you that Hamilton Horizons balance sheet is strong and contains no high risk assets. We have a 54 year track record of stewardship of our member's assets. Hamilton Horizons is safe and sound and your funds are insured by the Federal Government through NCUAI. Hamilton Horizons is one of the safest places to deposit your funds.

On behalf of the Board of Directors and Hamilton Horizons Staff,

Brenda J. Smith, Chairman of the Board

Cindy Rein-Zima, President/CEO