News Release

Zions Bancorporation Renews AT&T Relationship With $7.5 Million Networking Contract

AT&T's networking solution saves money and expands capabilities

SALT LAKE CITY -- Zions Bancorporation ("Zions") has extended its long-term business relationship with AT&T by awarding a $7.5 million contract renewal for an integrated networking solution to support consolidating bank-processing operations at selected regional banks. Zions operates approximately 400 full-service banking offices in eight western states.

Using a portfolio of AT&T voice and data services, Zions gains a number of corporate efficiencies, including more centralized network operations, the benefit of receiving uniform services across all banks from a single communications provider and call-center consolidation benefits. When the bank's "Project Unify" project is complete, Zions expects to achieve meaningful expense reduction through improved productivity.

"For more than 20 years, we have had a positive business relationship with AT&T, and this renewal agreement deepens our relationship," said Mike DeVico, executive vice president and chief information officer of Zions Bancorporation. "The quality and reliability of AT&T's services will help us consolidate banking services, reduce our costs and streamline customer service operations."

The AT&T networking solution includes frame relay, private line, calling card and voice services.

AT&T will integrate Zions' regional bank operations in Arizona, California, Colorado, Nevada and Utah with AT&T OneNet® Service, which bundles a custom solution of voice, data and Internet services into one contract.  In addition, through the award-winning secure AT&T BusinessDirectÒ portal, Zions gains online access to tools that provide real-time monitoring and management of network performance and direct access to AT&T's ordering, status, account management, billing and payment systems.

About Zions Bancorporation:

Zions Bancorporation (NASDAQ: ZION) is one of the nation's premier financial services companies, consisting of a collection of great banks in select high growth markets. Under local management teams and community identities, Zions operates approximately 400 full-service banking offices in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Utah and Washington. In addition, Zions is a national leader in SBA lending, public finance advisory services, agricultural finance and electronic bond trading. The company is included in the S&P 500 Index. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.

About AT&T

For more than 125 years, AT&T (NYSE 'T') has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.