Hibernia CEO: New SBA Loan Program for Small Businesses a Needed Step in the Right Direction

Hibernia Corp. (NYSE:HIB) announced today that it will
be part of a new loan program introduced this week by the U.S. Small
Business Administration (SBA) that allows designated banks to make
SBA-backed loans to businesses impacted by hurricanes Katrina and
Rita.
   Under the Gulf Opportunity Pilot Loan Program, new "GO Loans" will
be available through Sept. 30, 2006, to small businesses in the
counties and parishes of Texas, Louisiana, Mississippi, Alabama and
western Florida that are included in the Presidential disaster
declarations for the hurricanes, and the contiguous counties and
parishes.
   "This program is a needed first step toward revitalizing the
communities affected by the storms," said Hibernia President and CEO
Herb Boydstun. "We look forward to even greater flexibility from the
SBA so that private-sector lenders can become full partners in the
recovery effort."
   The SBA program, announced this week by the SBA, is a
public-private partnership. It allows local banks, which know their
customers best, to make credit decisions and reduces paperwork in the
application and funding process, making it easier for small businesses
to receive help.
   "We agree with the SBA's assessment that providing funds through
locally based financial institutions will speed delivery of loans to
small-business owners much more quickly than the SBA could accomplish
alone," said Boydstun.

   Hibernia is on Forbes magazine's list of the world's 2,000 largest
companies and Fortune magazine's list of America's top 1,000 companies
according to annual revenue. Hibernia has $23.2 billion in assets and
326 locations in 34 Louisiana parishes and 36 Texas counties. Hibernia
Corporation's common stock (HIB) is listed on the New York Stock
Exchange.