TierOne Corporation Declares Second Quarter 2008 Cash Dividend

LINCOLN, Neb.--(Business Wire)--
The Board of Directors of TierOne Corporation (NASDAQ: TONE)
announced today it has declared a quarterly cash dividend of $0.04 per
share on its common stock, payable July 8, 2008 to shareholders of
record at the close of business on June 30, 2008.

The latest declared cash dividend reflects a reduction from the
previous $0.08 per share quarterly level paid to TierOne shareholders.

"Our board recognizes that quarterly dividends are important to
our shareholders," said Gilbert G. Lundstrom, chairman and chief
executive officer. "Yet in today's very volatile economic and credit
environment, this reduction is an appropriate step to preserve our
capital and build our reserves through these challenging times."

TierOne Corporation is the parent company of TierOne Bank, a $3.4
billion federally chartered savings bank and the largest publicly
traded financial institution headquartered in Nebraska. Founded in
1907, TierOne Bank offers customers a wide variety of full-service
consumer, commercial and agricultural banking products and services
through a network of 69 banking offices located in Nebraska, Iowa and
Kansas and nine loan production offices located in Arizona, Colorado,
Florida, Minnesota, Nevada and North Carolina.

Statements contained in this news release which are not historical
facts may be forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause
actual results to differ materially from those currently anticipated
due to a number of factors. Factors which could result in material
variations include, but are not limited to, changes in interest rates
or other competitive factors which could affect net interest margins,
net interest income and noninterest income; changes in demand for
loans, deposits and other financial services in the Company's market
area; changes in asset quality and general economic conditions;
unanticipated issues associated with the execution of the Company's
strategic plan, including issues associated with a more diversified
loan portfolio; unanticipated issues associated with increases in the
levels of losses, customer bankruptcies, claims and assessments;
unanticipated issues that may arise relative to loan loss provisions
and charge-offs in connection with the Company's loan portfolio and
the resolution of the TransLand matter, as well as other factors
discussed in documents filed by the Company with the Securities and
Exchange Commission from time to time. These factors should be
considered in evaluating the forward-looking statements and undue
reliance should not be placed on such statements. The Company
undertakes no obligation to update these forward-looking statements to
reflect events or circumstances that occur after the date on which
such statements were made.

TierOne Corporation
Edward J. Swotek, 402-473-6250
Senior Vice President
Investor Relations Department
investorrelations@tieronecorp.com

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