April 9, 2004

The Federal Home Loan Bank of Seattle is pleased to announce an earned dividend on Class B(2) stock of 0.641 percent for the first quarter of 2004. The dividend is calculated at a rate which is the lesser of: (a) the Class B(1) dividend declared for the same quarter or (b) 73.47 percent of the Seattle Bank’s funding cost, which is approximately 3-month LIBOR minus 25 basis points.

The Seattle Bank announced recently an earned dividend rate on Class B(1) stock of 4.00 percent. The Class B(1) dividend is calculated based on the capital stock outstanding as of March 31. For stock purchased or redeemed during the quarter, the dividend is computed on the actual pro rata portion of the number of days in the current quarter that the stock was owned.

Under the provisions of the Seattle Bank’s capital plan, you may request redemption of your excess Class B(1) or B(2) stock at any time. Redemption is subject to a statutory five-year notice period; however, the Seattle Bank may, at its discretion, repurchase your stock earlier, as long as the bank complies with its capital requirements.

If you wish to request redemption of excess stock, or you have any questions regarding the first-quarter Class B(2) stock earned dividend, please contact Financial Services at 800.426.7538 or 206.340.8666.

This Member News contains forward-looking statements regarding events that may impact the bank's future financial performance. Forward-looking statements are subject to known and unknown risks and uncertainties. Actual performance may differ materially from projections because of many factors. Such factors may include, but are not limited to factors that affect the Seattle Bank’s net income, including without limitation demand for advances, business and capital plan adjustments, changes in the bank's management and Board of Directors, regulatory actions or approvals, competitive pressure from other Federal Home Loan Banks and alternative funding sources, accounting adjustments or requirements, interest rate volatility, the bank's ability to maintain adequate capital levels, changes in projected business volumes, our ability to appropriately manage our cost of funds, changes in our membership profile or the withdrawal of one or more large members, the cost-effectiveness of our funding, hedging, and asset-liability management activities, shifts in demand for our products and consolidated obligations, and general economic conditions. Additional factors are discussed in the Seattle Bank's annual report, available at www.fhlbsea.com . The Seattle Bank does not undertake to update any forward-looking statements made in this announcement.