FOR IMMEDIATE RELEASE

Contact:

Corporate Communications
Federal Home Loan Bank of Dallas
www.fhlb.com
(214) 441-8445

FHLBank of Dallas Announces Second Quarter Dividend

DALLAS, TEXAS, May 23, 2008 -- The Board of Directors of the Federal Home Loan Bank of Dallas (Bank) has declared a dividend in the form of capital stock for the second quarter of 2008 at an annualized rate of 3.18 percent, which equates to the average effective federal funds rate for the first quarter of 2008. The second quarter dividend, applied to average capital stock held during the period from January 1, 2008 through March 31, 2008 and based upon operating results for that same period, will be paid on June 30, 2008.

On July 31, 2008, the Bank will repurchase the portion of members’ excess stock identified as surplus stock as of that date. Surplus stock is currently defined as the amount of capital stock held by a member that exceeds 105 percent of its minimum investment requirement. A member’s surplus stock will not be repurchased if the amount of surplus stock is $250,000 or less.

The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. The Bank, with total assets of $68.7 billion as of March 31, 2008, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the Bank’s web site at fhlb.com.

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