Patronage Refund

Fort Worth, Texas –Lone Star, ACA (Lone Star Ag Credit), the premier ag-lender in Texas, is pleased to announce its cash patronage payout of $7,000,000.  Due to the excellent financial position of the Association, the Board of Directors voted in January to return this cash payment to our stockholders from 2006 earnings.  This payment occurred in April of 2007 and lowers the effective interest rate paid by a majority of our borrowers by approximately 1 percent (dependent on loan size, interest rate and interest paid) and assures Lone Star remained the lowest cost lender to do business with in our market.  With this payout the total amount of capital returned to our stockholders in cash totals $34,773,000 since 1998.

“Our cash patronage program is the greatest benefit of doing business with a cooperatively owned bank.  Lone Star Ag Credit takes pride in sharing our success with our customers,” said Daron Gates, CEO.  “The combination of our competitive interest rates, excellent customer service and cash patronage program allows Lone Star to be the lender of choice for all Texans.”

For more than 90 years, Lone Star Ag Credit has been a reliable source of financing for Rural America.  Lone Star Ag Credit provides a unique view in today's banking environment by being a strong, customer-owned bank committed to providing courteous, accurate service through a well-trained, highly motivated staff. Lone Star Ag Credit offers a wide variety of loan programs at competitive rates including agricultural and recreational real estate, rural homes, operating, equipment, livestock and agribusiness loans.   Lone Star Ag Credit has offices located in Fort Worth, Sweetwater, Abilene, Stephenville, Weatherford, Cleburne, Denton, Sherman, Paris and New Boston.

May 21, 2007