News Release:

July 10, 2006

Survey reveals construction costs are expected to escalate next quarter

Edmonton- Although Alberta's economy is expected to continue to sizzle, there may soon be economic implications for average Albertans, particularly given the anticipated rising cost of construction, according to the latest ATB Financial Business Sentiments Index™. The Index is compiled by the Western Centre for Economic Research at the University of Alberta School of Business based on a survey of over 400 Alberta businesses.

"Although the overall news is good, there are indications that anticipated challenges in some industries may affect ordinary people," says Dr. Bob Ascah, Vice President at ATB Financial. "Specifically, construction costs are rising and are expected to continue to rise, according to the majority of respondents. This would affect housing affordability and the cost of building roads and infrastructure." Conversely, material shortages do not seem to be a factor for the construction firms surveyed. Businesses in all leading economic sectors have indicated they expect strong activity and hiring to persist into the third quarter of 2006. Renewed strength in the oil and gas sector is providing a considerable amount of stimulus to other sectors in the Alberta economy.

Labour shortages are being cited as the major constraint affecting many industries, particularly the construction industry. Based on the responses about businesses' hiring intentions, the strength of the job market is evident throughout the province. The Index of Hiring Intentions, at 142 for quarter three, is close to the level of the index for quarter two. "The responses imply increased job opportunities across the sectors," says Ascah. "However, given the acute shortage of labour in Alberta, many firms may be finding ways to get the job done without hiring more people."

For the third quarter of 2006, the Business Sentiments Index™ was 153.8 compared with 152.1 for the second quarter. The results show a consistency of business sentiments found across Alberta businesses for a positive set of anticipations. Compared to the second quarter results, the Business Sentiments Index™ in quarter three shows a significantly increased level for oil and gas firms.

About the ATB Financial Business Sentiments Index™
"The ATB Financial Business Sentiments Index™ was commissioned in late 2005 as a tool to understand the intentions of Alberta business," says Dr. Ted Chambers, Research Professor, Western Centre for Economic Research, School of Business, University of Alberta. "As we continue to evaluate an expanding database of results and emerging patterns, this quarterly barometer of business confidence will be an even greater benefit to current and prospective Alberta business owners and investors."

The Index is developed from the findings of a WCER/ATB poll conducted from May 9 to May 23 2006. For the survey, a representative sample of over 400 Alberta businesses in key industries were interviewed by telephone. With a sample of this size, the results are considered accurate to within ± 5.5 percentage points, 19 times out of 20. The margin of error will be larger within regions and for other sub-groupings of the survey population.

About ATB Financial
ATB Financial is a leading full-service financial institution based in Edmonton, Alberta, Canada. ATB serves over 600,000 Albertans in 245 communities through 151 branches and 135 agencies, as well as a customer contact centre in Calgary, Alberta. Services are also available through automated banking machines and online banking. A wide range of wealth management products and services are provided under the banner of ATB Investor Services. For further information on ATB Financial please visit our website at www.atb.com.

About the Alberta School of Business, Western Centre for Economic Research
The Western Centre for Economic Research (WCER) monitors the performance of Western Canada's economy, its policies and programs, and implications for business enterprises. Drawing on a wide range of expertise, the recent work of the WCER has included analyses of the Alberta resource economy, Western Canadian international trade, the effects of free trade agreements, barriers to trade and the role of small business in the West. For further information please visit our website at www.bus.ualberta.ca/wcer.

For the full results, please see the attached backgrounder or visit the Western Centre for Economic Research web site at www.bus.ualberta.ca/wcer.

For further information please contact:

Brian Countryman
Director, Corporate Communications
ATB Financial
(780) 408-7307
E-mail: bcountryman1@atb.com

Jean Frost
Research Assistant
Western Centre for Economic Research, School of Business, University of Alberta
(780) 492-2235
wcer@ualberta.ca

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