KeyCorp Reports Fourth Quarter and 2007 Earnings

- EPS from continuing operations of $0.06 for the fourth quarter and $2.38 for
the full year

CLEVELAND, Jan. 22 /PRNewswire-FirstCall/ -- KeyCorp (NYSE: KEY) today
announced fourth quarter income from continuing operations of $22 million, or
$0.06 per diluted common share. This compares to income from continuing
operations of $311 million, or $0.76 per share, for the fourth quarter of
2006, and $224 million, or $0.57 per share, for the third quarter of 2007.
Key's income from continuing operations for 2007 was $941 million, or $2.38
per diluted common share. This compares to income from continuing operations
- before the cumulative effect of an accounting change - of $1.193 billion, or
$2.91 per share, for 2006.
Net income totaled $25 million, or $0.06 per diluted common share, for the
fourth quarter of 2007, compared to net income of $146 million, or $0.36 per
share, for the fourth quarter of 2006 and $210 million, or $0.54 per share,
for the third quarter of 2007. Key's net income for 2007 was $919 million, or
$2.32 per diluted common share, compared to $1.055 billion, or $2.57 per
share, in 2006.
Key's continuing and discontinued operating results for comparative
quarters and for the twelve months ended December 31, 2007, and 2006, are
presented in the following table.

Three months ended Twelve months ended
in millions, except per
share amounts 12-31-07 9-30-07 12-31-06 12-31-07 12-31-06
Summary of operations
Income from continuing
operations before
cumulative effect of
accounting change $22 $224 $311 $941 $1,193
Income (loss) from
discontinued operations,
net of taxes (a) 3 (14)c (165)d (22) (143)d
Cumulative effect of
accounting change, net of
taxes - - - - 5
Net income $25 $210 $146 $919 $1,055

Per common share - assuming
dilution (b)
Income from continuing
operations before cumulative
effect of accounting change $.06 $.57 $.76 $2.38 $2.91
Income (loss) from
discontinued operations (a) .01 (.03)c (.40)d (.05) (.35)d
Cumulative effect of
accounting change - - - - .01
Net income $.06 $.54 $.36 $2.32 $2.57

(a) Key sold the subprime mortgage loan portfolio held by the Champion
Mortgage finance business in November 2006, and completed the sale of
Champion's origination platform in February 2007. As a result of
these actions, Key has accounted for this business as a discontinued
operation.

(b) Earnings per share may not foot due to rounding.

(c) The loss from discontinued operations recorded in the third quarter
of 2007 was attributable largely to a write-down on the building
lease for the former Champion headquarters.

(d) Includes a net after-tax charge of $165 million, or $.40 per share,
consisting of: (1) a $170 million, or $.42 per share, write-off of
goodwill associated with Key's 1997 acquisition of Champion and (2) a
net after-tax credit of $5 million, or $.01 per share, from the net
gain on sale of the Champion Mortgage loan portfolio and disposal
transaction costs.

Key's provision for loan losses from continuing operations was $363
million for the fourth quarter of 2007, up from $53 million for the same
period one year ago. The increase was due primarily to deteriorating market
conditions in the commercial real estate portfolio. Also, during the fourth
quarter of 2007, the fixed income markets continued to experience
extraordinary volatility, widening credit spreads and significantly reduced
liquidity. The widening of credit spreads has adversely impacted the market
values of Key's loans held for sale and trading portfolios. During the fourth
quarter, Key recorded net losses of $6 million from loan sales and write-
downs, $1 million from dealer trading and derivatives, and $23 million from
certain real estate-related investments for a total of $30 million in net
losses. This compares to net gains of $58 million from these activities for
the fourth quarter of 2006 and net losses of $77 million for the third quarter
of 2007.
"Key's results for the fourth quarter of 2007 were adversely affected by a
number of charges related to additional reserves for loan losses, separation
expense, losses associated with volatility in the fixed income markets and the
strategic decision to exit certain business activities," said Chairman and
Chief Executive Officer Henry L. Meyer III. "With these actions, previously
announced on December 20, we believe Key is entering 2008 with adequate loan
loss reserves and a disciplined approach to managing its expense structure."
Meyer continued: "Key has been positioning itself for a potential downturn
in the credit cycle. We moved two years ago to curtail our Florida
condominium exposure, completed the sale of our subprime home mortgage lending
business during the fourth quarter of 2006 and just recently announced our
decisions to exit dealer-originated home improvement lending activities and
cease conducting business with non-relationship homebuilders outside of our
Community Banking footprint. Further, we have no meaningful CLO, CDO, ABCP or
SIV exposure."
Meyer concluded: "We experienced a number of positive trends in the fourth
quarter. Our commercial loan growth remained strong and several of our fee-
based businesses, including institutional asset management, had favorable
performances. Additionally, on January 1, 2008, we completed the acquisition
of U.S.B. Holding Company, headquartered in Orangeburg, New York. This
acquisition doubles our branch penetration in the attractive Lower Hudson
Valley area and reflects our continued focus on our core relationship banking
businesses.
"Recognizing the underlying strength of our company, on December 20, 2007,
the Board of Directors declared the 2008 first-quarter regular quarterly cash
dividend of $0.375 per common share. This represents a 2.7% increase over the
prior quarterly dividend, marking the 43rd consecutive year of dividend
increases."
SUMMARY OF CONTINUING OPERATIONS
Taxable-equivalent net interest income was $750 million for the fourth
quarter of 2007, compared to $744 million for the year-ago quarter. Average
earning assets grew by $5.4 billion, or 7%, while the net interest margin for
the current quarter declined to 3.48% from 3.66% for the fourth quarter of
2006. The reduction was due largely to both loan and deposit spreads which
have been under pressure due to competitive pricing. During the fourth
quarter of 2007, an $18 million lease accounting adjustment contributed
approximately 9 basis points to Key's taxable-equivalent net interest margin.
In the year-ago quarter, the net interest margin also benefited from a $16
million lease accounting adjustment, as well as an $8 million principal
investing distribution received in the form of a dividend. These two items
added approximately 12 basis points to Key's taxable-equivalent net interest
margin for that period.
Compared to the third quarter of 2007, taxable-equivalent net interest
income grew by $38 million, and the net interest margin rose by 8 basis
points. The improvement reflected a $2.7 billion, or 13% annualized, increase
in average earning assets, as well as the lease accounting adjustment recorded
during the fourth quarter of 2007. The growth in average earning assets was
driven by strong demand for commercial loans in Key's National Banking
operation.
Key's noninterest income was $488 million for the fourth quarter of 2007,
compared to $558 million for the year-ago quarter. The decrease was
attributable to the impact of continued market volatility on several of Key's
capital markets-driven businesses, as well as the sale of the McDonald
Investments branch network completed in the first quarter of 2007. Results
for the current quarter include $6 million in net losses from loan sales and
write-downs, including $31 million in net losses pertaining to commercial real
estate loans held for sale, offset in part by $28 million in net gains from
the sales of commercial lease financing receivables. This compares to net
gains of $42 million for the same period last year, including $14 million in
net gains related to commercial real estate loans, and a $25 million gain from
the securitization and sale of education loans. Income from investment
banking and capital markets activities decreased by $57 million, due to a $22
million reduction in investment banking income and declines in the fair values
of certain real estate-related investments held by the Private Equity unit
within the Real Estate Capital line of business. Trust and investment
services income was down $11 million, due to lower brokerage income resulting
from the sale of the McDonald Investments branch network. Excluding the
impact of the McDonald Investments sale, trust and investment services income
increased by $21 million, or 19%, driven by growth in both personal and
institutional asset management income. The company also experienced higher
noninterest income from deposit service charges and operating lease revenue,
which grew by $13 million and $9 million, respectively.
Compared to the third quarter of 2007, noninterest income grew by $50
million. The improvement reflected a $47 million reduction in net losses from
loan sales and write-downs, as well as higher trust and investment services
income. Noninterest income for the third quarter included a $27 million gain
related to the sale of MasterCard Incorporated shares.
Key's noninterest expense was $896 million for the fourth quarter of 2007,
compared to $809 million for the same period last year. Personnel expense
decreased by $48 million, due primarily to lower incentive compensation
accruals, offset in part by higher costs associated with salaries and
severance. Approximately $27 million of the reduction in total personnel
expense was attributable to the sale of the McDonald Investments branch
network. Nonpersonnel expense rose by $135 million from the year-ago quarter.
During the fourth quarter of 2007, nonpersonnel expense included a $64 million
charge, representing the estimated fair value of Key's liability to Visa Inc.
In accordance with Visa USA Bylaws, each Visa USA member is obligated to
indemnify Visa for a broad range of costs, damages, liabilities and other
expenses incurred by Visa. A primary factor used by each member in
determining the amount of its liability is its membership proportion. Also
contributing to the increase in nonpersonnel expense was a $25 million
provision for losses on lending-related commitments, compared to a $6 million
credit for the year-ago quarter; a $9 million increase in costs associated
with operating leases; and franchise and business tax expense of $7 million
for the fourth quarter of 2007, compared to a $7 million credit in the year-
ago quarter which resulted from settlements of disputed amounts. The McDonald
Investments sale reduced Key's total nonpersonnel expense by approximately $16
million.
Compared to the third quarter of 2007, noninterest expense grew by $143
million. The increase included a $16 million rise in personnel expense, due
largely to higher costs associated with severance. Nonpersonnel expense rose
by $127 million, reflecting the liability to Visa Inc., a higher provision for
losses on lending-related commitments and an increase in professional fees.
ASSET QUALITY
Key's provision for loan losses from continuing operations was $363
million for the fourth quarter of 2007, compared to $53 million for the year-
ago quarter and $69 million for the third quarter of 2007. During the fourth
quarter of 2007, Key's provision exceeded its net loan charge-offs by $244
million. The additional provision was a result of deteriorating market
conditions in the commercial real estate portfolio. As previously announced
on December 20, 2007, Key has moved to cease conducting business with non-
relationship homebuilders outside of its 13-state Community Banking footprint.
Based on this determination and its prior decision to curtail condominium
development lending activities, Key has transferred approximately $1.1 billion
of homebuilder-related loans and $800 million of condominium exposure to its
special asset management group. The majority of these portfolios is currently
performing and is expected to continue to perform.
Net loan charge-offs for the quarter totaled $119 million, or 0.67% of
average loans from continuing operations, compared to $54 million, or 0.33%,
for the same period last year and $59 million, or 0.35%, for the previous
quarter.
At December 31, 2007, Key's nonperforming loans totaled $687 million and
represented 0.97% of period-end portfolio loans, compared to 0.72% at
September 30, 2007, and 0.33% at December 31, 2006. At December 31, 2007,
nonperforming assets totaled $764 million and represented 1.08% of portfolio
loans, other real estate owned and other nonperforming assets, compared to
0.83% at September 30, 2007, and 0.41% at December 31, 2006. The increase in
nonperforming assets during the fourth quarter of 2007 was attributable
primarily to deteriorating market conditions in the residential properties
segment of Key's commercial real estate construction portfolio, principally in
Florida and California.
Key's allowance for loan losses was $1.200 billion, or 1.69% of loans
outstanding, at December 31, 2007, compared to $955 million, or 1.38%, at
September 30, 2007, and $944 million, or 1.43%, at December 31, 2006.
CAPITAL
Key's capital ratios continued to exceed all "well-capitalized" regulatory
benchmarks at December 31, 2007. Key's tangible equity to tangible assets
ratio was 6.46% at quarter end, compared to 6.78% at September 30, 2007, and
7.01% at December 31, 2006.
During the fourth quarter of 2007, Key did not repurchase any of its
common shares and reissued .1 million shares under employee benefit plans. At
December 31, 2007, Key had 14.0 million common shares remaining for repurchase
under the current authorization.
Share repurchases and other activities that caused the change in Key's
outstanding common shares over the past five quarters are summarized in the
table below.

Summary of Changes in Common Shares Outstanding

in thousands 4Q07 3Q07 2Q07 1Q07 4Q06
Shares outstanding at
beginning of period 388,708 389,362 394,483 399,153 402,748
Issuance of shares under
employee benefit plans 85 1,346 879 3,330 1,405
Repurchase of common shares - (2,000) (6,000) (8,000) (5,000)
Shares outstanding at end of
period 388,793 388,708 389,362 394,483 399,153

LINE OF BUSINESS RESULTS
The following table shows the contribution made by each major business
group to Key's taxable-equivalent revenue and income from continuing
operations for the periods presented. The specific lines of business that
comprise each of the major business groups are described under the heading
"Line of Business Descriptions." For more detailed financial information
pertaining to each business group and its respective lines of business, see
the tables at the end of this release.

Major Business Groups

Percent change
4Q07 vs.
dollars in millions 4Q07 3Q07 4Q06 3Q07 4Q06
Revenue from continuing operations
(TE)
Community Banking $651 $626 $677 4.0 % (3.8)%
National Banking 614 511 670 20.2 (8.4)
Other Segments 17 14 (11) 21.4 N/M
Total Segments 1,282 1,151 1,336 11.4 (4.0)
Reconciling Items (44) (1) (34) N/M (29.4)
Total $1,238 $1,150 $1,302 7.7 % (4.9)%

Income (loss) from continuing
operations
Community Banking $109 $130 $101 (16.2)% 7.9 %
National Banking (65) 73 195 N/M N/M
Other Segments 21 16 2 31.3 950.0
Total Segments 65 219 298 (70.3) (78.2)
Reconciling Items (43) 5 13 N/M N/M
Total $22 $224 $311 (90.2)% (92.9)%

TE = Taxable Equivalent, N/M = Not Meaningful

Community Banking
Percent change
4Q07 vs.
dollars in millions 4Q07 3Q07 4Q06 3Q07 4Q06
Summary of operations
Net interest
income (TE) $432 $409 $438 5.6 % (1.4)%
Noninterest income 219 217 239 .9 (8.4)
Total revenue (TE) 651 626 677 4.0 (3.8)
Provision for loan
losses 36 1 23 N/M 56.5
Noninterest
expense 441 418 493 5.5 (10.5)
Income before
income taxes (TE) 174 207 161 (15.9) 8.1
Allocated income
taxes and TE
adjustments 65 77 60 (15.6) 8.3
Net income $109 $130 $101 (16.2)% 7.9 %

Percent of
consolidated
income from
continuing
operations 495 % 58 % 32 % N/A N/A

Average balances
Loans and leases $27,236 $26,947 $26,697 1.1 % 2.0 %
Total assets 29,911 29,716 29,666 .7 .8
Deposits 47,253 46,727 47,348 1.1 (.2)

TE = Taxable Equivalent, N/M = Not Meaningful, N/A = Not Applicable

Percent change
Additional Community Banking Data 4Q07 vs.
dollars in millions 4Q07 3Q07 4Q06 3Q07 4Q06
Average deposits
outstanding
NOW and money market
deposit accounts $20,471 $20,305 $20,586 .8 % (.6)%
Savings deposits 1,513 1,569 1,639 (3.6) (7.7)
Certificates of deposit
($100,000 or more) 4,918 4,566 4,329 7.7 13.6
Other time deposits 11,454 11,485 11,915 (.3) (3.9)
Deposits in foreign office 1,249 1,128 818 10.7 52.7
Noninterest-bearing
deposits 7,648 7,674 8,061 (.3) (5.1)
Total deposits $47,253 $46,727 $47,348 1.1 % (.2)%

Home equity loans
Average balance $9,658 $9,690 $9,881
Weighted-average loan-to-
value ratio 70 % 70 % 70 %
Percent first lien
positions 57 58 59

Other data
On-line households /
household penetration 737,393/45 % 743,909/45 % 682,955/53 %
Branches 955 954 950
Automated teller machines 1,443 1,439 2,050

Community Banking Summary of Operations
Community Banking recorded net income of $109 million for the fourth
quarter of 2007, up from $101 million for the year-ago quarter. The
improvement was attributable to a decrease in noninterest expense which more
than offset declines in net interest income and noninterest income, and an
increase in the provision for loan losses.
Taxable-equivalent net interest income decreased by $6 million, or 1%,
from the fourth quarter of 2006, as interest rate spreads on both average
earning assets and deposits have remained under pressure due to the
continuation of competitive pricing. The decrease also reflected the effect
of the February 2007 sale of the McDonald Investments branch network in which
Key transferred approximately $1.3 billion of NOW and money market deposit
accounts to the buyer. McDonald Investments' NOW and money market deposit
accounts averaged $1.6 billion for the fourth quarter of 2006.
Noninterest income decreased by $20 million, or 8%. The decrease was
attributable to the McDonald Investments sale. Excluding the impact of this
sale, noninterest income rose by $20 million, or 10%, from the same period one
year ago, due to growth in deposit service charge income, gains from the sales
of securities in the fourth quarter of 2007, and higher income from trust and
investment services.
The provision for loan losses increased by $13 million, or 57%, compared
to the fourth quarter of 2006.
Noninterest expense declined by $52 million, or 11%, from the year-ago
quarter. Reductions in costs resulting from the sale of the McDonald
Investments branch network accounted for $43 million of the decline, including
a $27 million decrease in personnel expense. The remainder of the decline in
total noninterest expense reflected decreases in various direct and indirect
charges, due in part to a reduction in the number of average full-time
equivalent employees.
On January 1, 2008, Key acquired U.S.B. Holding Co., Inc., the holding
company for Union State Bank, a 31-branch state-chartered commercial bank
headquartered in Orangeburg, New York. U.S.B. Holding Company had assets of
$2.8 billion and deposits of $1.8 billion at the date of acquisition. The
acquisition doubles Key's branch penetration in the attractive Lower Hudson
Valley area.

National Banking
Percent change
4Q07 vs.
dollars in millions 4Q07 3Q07 4Q06 3Q07 4Q06
Summary of operations
Net interest
income (TE) $391 $359 $365 8.9 % 7.1 %
Noninterest
income 223 152 305 46.7 (26.9)
Total revenue
(TE) 614 511 670 20.2 (8.4)
Provision for
loan losses 327 68 30 380.9 990.0
Noninterest
expense 388 328 328 18.3 18.3
(Loss) income
from continuing
operations
before income
taxes (TE) (101) 115 312 N/M N/M
Allocated income
taxes and TE
adjustments (36) 42 117 N/M N/M
(Loss) income
from continuing
operations (65) 73 195 N/M N/M
Income (loss)
from
discontinued
operations, net
of taxes 3 (14) (165) N/M N/M
Net (loss)
income $(62) $59 $30 N/M % N/M %

Percent of
consolidated
income from
continuing
operations N/M % 33 % 63 % N/A N/A

Average balances from
continuing
operations
Loans and leases $42,037 $40,277 $38,469 4.4 % 9.3 %
Loans held for
sale 4,709 4,692 4,521 .4 4.2
Total assets 53,324 50,954 49,033 4.7 8.8
Deposits 12,630 12,633 11,876 - 6.3

TE = Taxable Equivalent, N/M = Not Meaningful, N/A = Not Applicable

National Banking Summary of Continuing Operations
National Banking recorded a net loss of $65 million from continuing
operations for the fourth quarter of 2007, compared to net income of $195
million from continuing operations for the same period last year. Lower
noninterest income along with increases in the provision for loan losses and
noninterest expense accounted for the reduction, and more than offset an
increase in net interest income.
Taxable-equivalent net interest income rose by $26 million, or 7%, from
the fourth quarter of 2006 as a result of increases in average earning assets
and deposits, offset in part by tighter interest rate spreads. Average loans
and leases grew by $3.6 billion, or 9%, while average deposits rose by $754
million, or 6%, from the year-ago quarter.
Noninterest income declined by $82 million, or 27%, as several capital
markets-driven businesses were adversely affected by continued volatility in
the financial markets. Results for the current quarter include $9 million in
net losses from loan sales and write-downs, including $31 million in net
losses pertaining to commercial real estate loans held for sale, offset in
part by $28 million in net gains from the sales of commercial lease financing
receivables. This compares to net gains of $37 million for the same period
last year, including $14 million in net gains related to commercial real
estate loans and a $25 million gain from the securitization and sale of
education loans. Income from investment banking and capital markets
activities decreased by $60 million, due to a $20 million decline in
investment banking income, a $29 million decrease in the fair values of
certain real estate-related investments held by the Private Equity unit within
the Real Estate Capital line of business, and less favorable results from
trading activities conducted in the Debt Capital Markets area. The decrease
in total noninterest income was offset in part by an $18 million increase in
trust and investment services income and a $10 million increase in operating
lease revenue.
The provision for loan losses rose by $297 million, reflecting
deteriorating market conditions in the residential properties segment of Key's
commercial real estate construction portfolio. As recently announced, Key has
moved to cease conducting business with non-relationship homebuilders outside
of its 13-state Community Banking footprint. Based on this determination and
its prior decision to curtail condominium development lending activities, Key
has transferred approximately $1.1 billion of homebuilder-related loans and
$800 million of condominium exposure to its special asset management group.
The majority of these portfolios is currently performing and is expected to
continue to perform.
Noninterest expense grew by $60 million, or 18%, from the year-ago
quarter. Contributing to the growth was a $22 million increase in the
provision for losses on lending-related commitments and a $9 million rise in
costs associated with operating leases.
During the fourth quarter of 2007, Key's management made the strategic
decision to exit dealer-originated home improvement lending activities, which
involve prime loans but are largely out-of-footprint. Key also decided to
cease offering its Payroll Online services which were not of sufficient size
to provide the company with economies of scale to compete profitably.
On October 1, 2007, Key acquired Tuition Management Systems, Inc., one of
the nation's largest providers of outsourced tuition planning, billing and
related technology services. Headquartered in Warwick, Rhode Island, Tuition
Management Systems serves more than 700 colleges, universities, elementary and
secondary educational institutions. The payment plan systems and technology
in place at Tuition Management Systems and the array of payment plan products
offered by Key's Consumer Finance line of business will create one of the
largest, most robust payment plan offerings in the nation.
Other Segments
Other segments consist of Corporate Treasury and Key's Principal Investing
unit. These segments generated net income of $21 million for the fourth
quarter of 2007, compared to $2 million for the same period last year.
Results for the fourth quarter of 2006 were reduced by a $24 million charge
recorded in connection with the redemption of certain trust preferred
securities.
Line of Business Descriptions

Community Banking

Regional Banking provides individuals with branch-based deposit and
investment products, personal finance services and loans, including
residential mortgages, home equity and various types of installment loans.
This line of business also provides small businesses with deposit, investment
and credit products, and business advisory services.
Regional Banking also offers financial, estate and retirement planning,
and asset management services to assist high-net-worth clients with their
banking, trust, portfolio management, insurance, charitable giving and related
needs.
Commercial Banking provides midsize businesses with products and services
that include commercial lending, cash management, equipment leasing,
investment and employee benefit programs, succession planning, access to
capital markets, derivatives and foreign exchange.
National Banking
Real Estate Capital provides construction and interim lending, permanent
debt placements and servicing, and equity and investment banking services to
developers, brokers and owner-investors. This line of business deals
exclusively with nonowner-occupied properties (i.e., generally properties in
which at least 50% of the debt service is provided by rental income from
nonaffiliated third parties).
Equipment Finance meets the equipment leasing needs of companies worldwide
and provides equipment manufacturers, distributors and resellers with
financing options for their clients. Lease financing receivables and related
revenues are assigned to other lines of business (primarily Institutional and
Capital Markets, and Commercial Banking) if those businesses are principally
responsible for maintaining the relationship with the client.
Institutional and Capital Markets provides products and services to large
corporations, middle-market companies, financial institutions, government
entities and not-for-profit organizations. These products and services
include commercial lending, treasury management, investment banking,
derivatives and foreign exchange, equity and debt underwriting and trading,
and syndicated finance.
Through its Victory Capital Management unit, Institutional and Capital
Markets also manages or gives advice regarding investment portfolios for a
national client base, including corporations, labor unions, not-for-profit
organizations, governments and individuals. These portfolios may be managed
in separate accounts, common funds or the Victory family of mutual funds.
Consumer Finance includes Indirect Lending, Commercial Floor Plan Lending,
Home Equity Services and Business Services.
Indirect Lending offers loans to consumers through dealers. This business
unit also provides federal and private education loans to students and their
parents, and processes payments on loans that private schools make to parents.
Commercial Floor Plan Lending finances inventory for automobile and marine
dealers.
Home Equity Services works with home improvement contractors to provide
home equity and home improvement financing solutions.
Business Services provides payroll processing solutions for businesses of
all sizes.
Cleveland-based KeyCorp is one of the nation's largest bank-based
financial services companies, with assets of approximately $100 billion. Key
companies provide investment management, retail and commercial banking,
consumer finance, and investment banking products and services to individuals
and companies throughout the United States and, for certain businesses,
internationally. The company's businesses deliver their products and services
through 955 branches and additional offices; a network of 1,443 ATMs;
telephone banking centers (1.800.KEY2YOU); and a Web site,
https://www.key.com/ (R), that provides account access and financial products
24 hours a day.
Notes to Editors:
A live Internet broadcast of KeyCorp's conference call to discuss
quarterly earnings and currently anticipated earnings trends and to answer
analysts' questions can be accessed through the Investor Relations section at
https://www.key.com/ir at 9:00 a.m. ET, on Tuesday, January 22, 2008. An
audio replay of the call will be available through January 29.
For up-to-date company information, media contacts and facts and figures
about Key's lines of business visit our Media Newsroom at
https://www.key.com/newsroom.
This news release contains forward-looking statements, including
statements about our financial condition, results of operations, earnings
outlook, asset quality trends and profitability. Forward-looking statements
express management's current expectations or forecasts of future events and,
by their nature, are subject to assumptions, risks and uncertainties.
Although management believes that the expectations and forecasts reflected in
these forward-looking statements are reasonable, actual results could differ
materially due to a variety of factors including: (1) changes in interest
rates; (2) changes in trade, monetary or fiscal policy; (3) changes in general
economic conditions, or in the condition of the local economies or industries
in which we have significant operations or assets, which could, among other
things, materially impact credit quality trends and our ability to generate
loans; (4) increased competitive pressure among financial services companies;
(5) the inability to successfully execute strategic initiatives designed to
grow revenues and/or manage expenses; (6) consummation of significant business
combinations or divestitures; (7) operational or risk management failures due
to technological or other factors; (8) heightened regulatory practices,
requirements or expectations; (9) new legal obligations or liabilities or
unfavorable resolution of litigation; (10) adverse capital markets conditions;
(11) continued disruption in the fixed income markets; (12) disruption in the
economy and general business climate as a result of terrorist activities or
military actions; and (13) changes in accounting or tax practices or
requirements. Forward-looking statements are not guarantees of future
performance and should not be relied upon as representing management's views
as of any subsequent date. We do not assume any obligation to update these
forward-looking statements. For further information regarding KeyCorp, please
read KeyCorp's reports that are filed with the Securities and Exchange
Commission and are available at www.sec.gov.
SOURCE KeyCorp

Vernon L. Patterson, Analyst, +1-216-689-0520, Vernon_Patterson@KeyBank.com,
or William C. Murschel, Media, +1-216-828-7416,
William_C_Murschel@KeyBank.com, both of KeyCorp/ /FIRST AND FINAL ADD --
TABULAR MATERIAL -- TO FOLLOW