1140657--3/20/2009--HUNTINGTON_PREFERRED_CAPITAL

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The current economic environment presents heightened risk which could adversely effect our business and operating results Our portfolio of commercial real estate loan participation interests has and will continue to be affected by the on-going correction in residential real estate prices and reduced levels of home sales. Declines in home values and reduced levels of home sales in our markets could continue to adversely affect us. We rely on the Bank s credit underwriting standards and on-going process of credit assessment. There can be no assurance that the Bank s standards and assessments will protect us from significant credit losses on loans underlying its participation interests. We have no control over changes in interest rates and such changes could negatively impact our financial condition, results of operations, and ability to pay dividends. Bank regulators may limit HPCI s ability to implement its business plan and may restrict its ability to pay dividends. HPCI could suffer adverse tax consequences if it failed to qualify as a REIT. HPCI is dependent, in virtually every phase of its operations, on the diligence and skill of the officers and employees of the Bank, the Bank s ability to retain key employees, and its relationship with the Bank may create potential conflicts of interest. HPCI s assets may be used to guarantee certain of the Bank s obligations that will have a preference over the holders of HPCI s preferred securities. HPCI may redeem the Class C and Class D preferred securities upon the occurrence of certain special events and holders of such securities may receive a redemption amount that is different than the then current market price for the securities.

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1140657--3/20/2009--HUNTINGTON_PREFERRED_CAPITAL_INC