State Treasurer Begins Cutting Edge Way to Invest in Iowa

CONTACT PERSON(S):

Michael Fitzgerald, Treasurer of State 515-281-5368 Karen Sinclair, Executive Officer 515-281-7677

June 20, 2002

State Treasurer Michael L. Fitzgerald announced today that starting in July, he will begin investing in Iowa banks by auctioning available funds over the internet. "This is an exciting, cutting edge way to invest money in Iowa," Fitzgerald stated. "The Internet has revolutionized the way Iowans do business. We will now be using the internet to allow financial institutions in Iowa to "bid" on money that will be invested in Iowa."

The internet auctions are the newest innovation in the Invest in Iowa program created by Fitzgerald in 1983. The program’s goal is to place state funds in Iowa institutions at competitive rates. This money can then be used by the financial institution to make loans and stimulate the local economy.

"This is an efficient and effective way to invest money," Fitzgerald stated. "No more phone calls, faxes, or mailings. Most importantly, the new Invest in Iowa auction process will ensure fairness and improve competitiveness in the placement of funds in Iowa financial institutions."

Auctions are scheduled for the second Tuesday of January, April, July and October. The first online auction for the Invest in Iowa program is scheduled for July 9 at 10:00 a.m. with $50 million in funds available for bidding. Each auction will have an established minimum interest rate and a minimum bid of $100,000. Each certificate of deposit is required to be held by the bank for a six-month term.

For more information about the Invest in Iowa program, visit the Treasurer’s website at www.treasurer.state.ia.us/investments/invest.cfm or contact the State Treasurer’s Office at 515-281-5368.