North Dakota's College SAVE Plan Expands Matching Grant
More North Dakota Families Now Eligible for Matching Grant Program

BISMARCK–December 22, 2008–Bank of North Dakota (BND) today announced the expansion of the College SAVE matching grant program. College SAVE is North Dakota’s 529 college savings plan established by the state to encourage savings through tax-exempt investments for the purpose of paying for higher education expenses.

With the new expansion, effective January 1, 2009, the $300 matching grant program will now benefit College SAVE investors who earn less than $40,000 annually (or $80,000 for couples who file jointly). Under the previous provisions, only College SAVE investors earning less than $20,000 annually (or $40,000 for couples who file jointly) were eligible for the program.*

In addition to the new income parameters, investors who earn less than $20,000 annually (or $40,000 for couples who file jointly) can apply for matching grants for three consecutive years.

“Expanding the eligibility of the matching grant program demonstrates our commitment to assist North Dakota families with future education costs,” said Eric Hardmeyer, BND President. “Also, the opportunity for families earning less than $40,000 to receive up to $900 from Bank of North Dakota in matching funds can be a substantial boost to their college saving efforts.”

Due to funding limitations, the first 1,000 beneficiaries per calendar year who qualify for the matching grant program will receive funds, so there is incentive to enroll early. To receive the funds, the beneficiary of the account must be 12 years of age or younger. Plus, those who enrolled in the program since July 1, 2007 who meet the new parameters also qualify with additional contributions and should apply.

The College SAVE Plan offers a number of important benefits, including:

• A state tax deduction of up to $5,000 ($10,000 for couples filing jointly) for North Dakota taxpayers**
• UgiftSM – Give College Savings, a new way for Participants to invite family and friends to make gift contributions to their College SAVE accounts
• Tax-free qualified withdrawals***
• Low minimum investment, high contribution maximum

“We are excited about the program's expansion,” said Hardmeyer. “In this economy, families need help saving for college, and we are proud to have a program that provides assistance in doing so.”

North Dakota families can learn more about the matching grant program and the College SAVE Plan by going to www.collegesave4u.com or calling 1-866-SAVE-529.

College SAVE is administered by Bank of North Dakota. The nation’s only state-owned bank, BND was established in 1919 to encourage and promote agriculture, commerce and industry in North Dakota. BND is overseen by the Industrial Commission of North Dakota, consisting of Gov. John Hoeven as chairman, Attorney General Wayne Stenehjem, and Agriculture Commissioner Roger Johnson.


*Matching grants are subject to the availability of funds and can be reduced or stopped at Bank of North Dakota’s discretion.

**Rollovers from another state’s 529 plan are not considered eligible for the state income tax deduction.

***Earnings on non-qualified distributions are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.

For more information about North Dakota's College SAVE Plan, call 1-866-SAVE-529
(1-866-728-3529) or visit www.collegesave4u.com to obtain a Plan Disclosure Statement. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Disclosure Statement; read and consider it carefully before investing. Upromise Investments, Inc., Distributor and Underwriter.

If you are not a North Dakota taxpayer, consider before investing whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

The College SAVE Plan is a 529 Plan established by the State of North Dakota. Bank of North Dakota acts as trustee of the College SAVE Trust and is responsible for administering the Plan. Upromise Investments, Inc. and Upromise Investment Advisors, LLC serve as the Plan Manager and Recordkeeping and Servicing Agent, respectively, with overall responsibility for the day-to-day operations, including effecting transactions and marketing and distribution of the Plan. The Vanguard Group, Inc., provides underlying investments for the Plan. The Plan's Portfolios, although they invest in mutual funds, are not mutual funds. Units of the Portfolios are municipal fund securities and the value of units will vary with market conditions.

Ugift is a registered service mark of Upromise, Inc.

Investment returns are not guaranteed, and you could lose money by investing in the College SAVE Plan.

Not FDIC Insured. No Bank, State or Federal Guarantee. May Lose Value.

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