KeyCorp Commences Capital Raise of $750 Million

CLEVELAND, May 11 /PRNewswire-FirstCall/ -- KeyCorp (NYSE: KEY) today
announced that it plans to sell up to $750 million aggregate principal amount
of its common shares in a so-called "at the market" offering and has filed a
prospectus supplement to its existing automatic shelf registration statement
on file with the Securities and Exchange Commission in connection with the
offering.

Today's announcement was the first leg of KeyCorp's action plan for increasing
its Tier 1 common equity capital following the announcement on May 7, 2009,
that KeyCorp needed to increase its Tier 1 common equity by $1.8 billion in
order to satisfy the requirements of the federal government's Supervisory
Capital Assessment Program -- or "stress test" -- under which the regulators
are requiring the tested bank holding companies to hold additional capital
buffers against a "more adverse than expected" macroeconomic scenario were it
to become a reality. KeyCorp has named Morgan Stanley as its sales agent in
connection with the offering.

The widely-reported government stress tests of the largest 19 U.S. bank
holding companies were, according to the government, a "what-if" exercise to
determine appropriate levels of capital for a worse than anticipated economic
environment. Although KeyCorp meets the regulatory requirements for being
"well-capitalized" today, and holds capital significantly in excess of all
required regulatory measures, under the "what-if" scenario of a much harsher
economic environment, the stress test determined that Key would be best served
by raising the level of its Tier 1 common equity by $1.8 billion.

KeyCorp reported that additional actions are also contemplated, including
possibly public and/or private transactions in which certain currently
outstanding Tier 1 capital instruments are exchanged for common shares, a move
that would further enhance KeyCorp's Tier 1 common equity.

KeyCorp also noted that the government's pre-provision earnings scenarios used
under the "more adverse than expected" scenario were extremely conservative
and below KeyCorp's own internal expectation, and that an economic environment
that is better than the tested scenario would likely yield additional capital
generation through earnings.

Cleveland-based KeyCorp is one of the nation's largest bank-based financial
services companies, with assets of approximately $97 billion. BusinessWeek
Magazine named Key the top bank in its Customer Service Champ 2009 edition,
ranking Key 11th out of the top-25 companies that include many known for their
customer service acumen. 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. For more information, visit
https://www.key.com/.

KeyCorp has filed a registration statement (including a prospectus) with the
SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the company has filed with the SEC for more complete information
about the company and this offering. You may obtain these documents for free
by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, KeyCorp
or the sales agent will arrange to send you the prospectus if you request it
by contacting KeyCorp, Investor Relations, at 216 689-4221 or Morgan Stanley
at 866 718-1649 or by e-mail at prospectus@morganstanley.com.

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements
about our financial condition, results of operations, asset quality trends
and profitability. Forward-looking statements are not historical facts but
instead represent only management's current expectations and forecasts
regarding future events, many of which, by their nature, are inherently
uncertain and outside of Key's control. Key's actual results and financial
condition may differ, possibly materially, from the anticipated results and
financial condition indicated in these forward-looking statements.

Factors that may cause actual results to differ materially include, among
other things: (1) adverse capital markets conditions and the inability to
raise equity and other funding in the capital markets; (2) further downgrades
in our credit ratings; (3) unprecedented volatility in the stock markets,
public debt markets and other capital markets, including continued disruption
in the fixed income markets; (4) changes in interest rates; (5) changes in
trade, monetary or fiscal policy; (6) asset price deterioration has had (and
may continue to have) a negative effect on the valuation of certain asset
categories represented on Key's balance sheet; (7) continuation of the recent
deterioration 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; (8) continued disruption in the housing markets
and related conditions in the financial markets; (9) increased competitive
pressure among financial services companies due to the recent consolidation of
competing financial institutions and the conversion of certain investment
banks to bank holding companies; (10) heightened legal standards and
regulatory practices, requirements or expectations; (11) the inability to
successfully execute strategic initiatives designed to grow revenues and/or
manage expenses; (12) increased FDIC deposit insurance premiums; (13)
difficulty in attracting and/or retaining key executives and/or relationship
managers; (14) consummation of significant business combinations or
divestitures; (15) operational or risk management failures due to
technological or other factors; (16) changes in accounting or tax practices or
requirements; (17) new legal obligations or liabilities or unfavorable
resolution of litigation; and (18) disruption in the economy and general
business climate as a result of terrorist activities or military actions.

For additional information on KeyCorp and the factors that could cause Key's
actual results or financial condition to differ materially from those
described in the forward-looking statements consult Key's Annual Report on
Form 10-K for the year ended December 31, 2008, and subsequent filings with
the Securities and Exchange Commission available on the Securities and
Exchange Commission's website (www.sec.gov). 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.

SOURCE KeyCorp

Media: William C. Murschel, +1-216-828-7416, william_c_murschel@keybank.com,
Analysts: Vernon L. Patterson, +1-216-689-0520, vernon_patterson@keybank.com,
or Christopher F. Sikora, +1-216-689-3133, chris_sikora@keybank.com; Key Media
Newsroom: www.Key.com/newsroom, INVESTOR RELATIONS: www.key.com/ir