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Public Debt Announces Call 7-5/8 % Bonds of 2002-07

FOR IMMEDIATE RELEASE

October 15, 2001

CONTACT: Peter Hollenbach 202-691-3502

TREASURY CALLS 7-5/8 PERCENT BONDS OF 2002-07

The Treasury today announced the call for redemption at par on February 15, 2002, of the 7-5/8% Treasury Bonds of 2002-07, issued February 15, 1977, due February 15, 2007 (CUSIP No. 912810BX5). There are $4,234 million of these bonds outstanding, of which $2,668 million are held by private investors. Securities not redeemed on February 15, 2002, will cease to earn interest.

These bonds are being called to reduce the cost of debt financing. The 7-5/8% interest rate is significantly above the current cost of securing financing for the five years remaining to their maturity. Under current market conditions, we estimate that the budget outlay savings from the call and refinancing will be about $300 million.

Payment will be made automatically by the Treasury for bonds in book-entry form, whether held on the books of the Federal 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.

PA-520