Residents Cash in Savings Bonds at Treasurer’s Office

$5,000 College Bonds Mature Today

August 1, 2008

Starting today, Illinois State Treasurer Alexi Giannoulias’ Banking Division will be flooded with
Illinois residents cashing in the matured $5,000 college savings bonds they invested in years ago.

The Illinois State Treasurer’s Office serves as the bond registrar and co-paying agent under the
Baccalaureate Savings Act, which was passed by the General Assembly in 1988 to provide
financial incentives for parents who save for their children’s college education.

Every August, a new series of college savings bonds mature, and bondholders can cash in their
investments in room 100D of the Illinois State Treasurer’s Banking Division, located at 300 W.
Jefferson St., Springfield.

“This is a very special day in the Treasurer’s Office, where we have responsibility to take these
college bonds and turn around $5,000 checks,” Giannoulias said. “These bondholders leave our
office with money in their pockets that they can use for their children’s higher education.”

A bondholder can collect the $5,000 payment from their respective paying agent in person or by
mailing their certificate to the paying agent’s appropriate address. In order to receive the $5,000,
an individual must present the original bond and a completed W-9 tax form or face a 20 percent
penalty. In addition, bondholders must provide a valid proof of identification if cashing the bond in
person.

If the bondholder has moved during the term of the bond, a filed change of address form—signed
by all registered owners—must be submitted. If the bondholder’s information has changed due to
divorce, marriage, or death the individual should directly contact the paying agent for specific
instructions regarding documentation requirements and processing procedures.

A bondholder who purchased a college bond in 1988 and wanted it to mature to $5,000 in 1993
would have paid $3,542.90. However, if a bondholder did not need the bond to mature until this
year, he or she would have paid only $1,020.65 in 1988.

These investments are considered municipal securities and are exempt from federal and state of
Illinois income taxes.

While these bonds were intended to help parents pay for children’s college costs, the bonds are
not required to be used for college expenses. However, rights to a bonus incentive grant handled
by the Illinois Student Assistance Commission would be forfeited if the bond is not used toward
college education.

Since the program’s start, more than $2 billion in college savings bonds have been issued. The
last bond series was issued in October 2002 with a final maturity date set at August 1, 2024.

If the bond is not cashed within the particular paying agent’s allotted time frame, the bond funds
will be reverted to the state of the bondholder’s last known address. In Illinois, this money is
deposited into a Matured Bond and Coupon Fund maintained by the Illinois State Treasurer’s
Banking Division, so outstanding bond requests may still be efficiently processed.

With the introduction and evolution of more effective 529 college savings plans like the Bright Start
College Savings Program, the Governor’s Office of Management and Budget has chosen not to
seek renewal from the General Assembly for further issuance of college savings bonds.

Bright Start is an easy-to-use and tax-advantaged 529 education savings and investment plan
sponsored by the Illinois State Treasurer’s Office and managed by trusted industry leaders,
OppenheimerFunds, Inc. and its affiliates, The Vanguard Group.

For further information regarding Bright Start, visit the website at www.brightstartsavings.com.