Patronage Refund

Fort Worth, Texas - 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 2005 earnings. This payment will occur in April of 2006 and lowers the effective interest rate paid by a majority of our borrowers by approximately 1.2% (dependent on loan size, interest rate and interest paid) and assures Lone Star remains 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 $28,641,076 since 1998.

"The return of borrower capital is the single greatest advantage of doing business with a cooperatively owned bank. As a customer-owned financing cooperative, Lone Star, places a high priority on sharing our success with our customers," said CEO, Daron Gates. "Our customers have become accustomed to receiving competitive rates and excellent customer service and when you add our cash patronage distribution to the mix we don't believe you can find another lender that can compete," said Gates.

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 12, 2006