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Treasury Calls 7-7/8 Percent Bonds of 2002-07

FOR IMMEDIATE RELEASE

July 15, 2002

The Treasury today announced the call for redemption at par on November 15, 2002, of the 7-7/8% Treasury Bonds of 2002-07, issued November 15, 1977, due November 15, 2007 (CUSIP No. 912810BZ0). There are $1,495 million of these bonds outstanding, of which $1,022 million are held by private investors. Securities not redeemed on November 15, 2002, will stop earning interest.

These bonds are being called to reduce the cost of debt financing. The 7-7/8% interest rate is significantly above the current cost of securing financing for the five years remaining to their maturity. In current market conditions, Treasury estimates that interest savings from the call and refinancing will be about $150 million.

Payment will be made automatically by the Treasury for bonds in book-entry form, whether held on the books of the FedĀ­eral Reserve Banks or in TreasuryDirect accounts. Bonds held in coupon or registered form should be presented for redemption to financial institutions or mailed directly to the Bureau of the Public Debt, Definitives Section, P.O. Box 426, Parkersburg, WV 26106-0426.