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FOR IMMEDIATE RELEASE

Contact:
Terri McKay, FHLBank of Pittsburgh: 412-288-2830; cell: 412-523-8511

FHLBANK PITTSBURGH ANNOUNCES THIRD QUARTER 2006 FINANCIAL RESULTS

PITTSBURGH, November 9, 2006 — The Federal Home Loan Bank of Pittsburgh (FHLBank Pittsburgh) announced unaudited financial results for the quarter ended September 30, 2006.

Operating Results
Net income for the third quarter of 2006 was $54.7 million, compared to $65.1 million in the same period of 2005. The earnings decrease was primarily due to a net loss on derivatives and hedging activities of $1.5 million in the third quarter of 2006, compared to a net gain of $24.3 million in the third quarter of 2005. This variance was primarily due to the termination of the index-amortizing swap portfolio, which had resulted in significant gains for the third quarter of 2005. Net income for the nine months ended September 30, 2006, was $158.3 million, compared to $145.4 million for the same period in 2005. Note that these comparisons include results from changes in strategy regarding hedging and derivatives activities. These strategic changes, made by management in conjunction with FHLBank Pittsburgh's earnings restatement, significantly impact comparisons to prior periods. A full discussion of the restatement is available in FHLBank Pittsburgh's Form 10 registration statement.

Net interest income after provision for credit losses increased $11.3 million, or 15%, to $89.3 million in the third quarter of 2006, from $78.0 million in the third quarter of 2005. For the nine months ended September 30, 2006, net interest income after provision for credit losses increased to $253.9 million, from $231.6 million for the same period in 2005. Net interest income increases in both the quarter and the nine-month comparisons were due to growth in interest-earning assets, primarily loans to members and investment securities, as well as a higher short-term interest rate environment.

"Operating results for the third quarter were strong, allowing us to continue adding value for our members and, importantly, supporting affordable housing for lower-income individuals and families," said John R. Price, president and CEO of FHLBank Pittsburgh.

Balance Sheet Highlights
Total assets at September 30, 2006, were $78.3 billion, up from $72.9 billion at year-end 2005. Loans to members outstanding increased to $49.7 billion at September 30, 2006, compared to $47.5 billion at year-end 2005. Net mortgage loans held for portfolio decreased to $7.2 billion, from $7.7 billion at December 31, 2005. FHLBank Pittsburgh's total capital at September 30, 2006, was $3.7 billion, including retained earnings of $238.0 million, compared to total capital of $3.3 billion and retained earnings of $188.5 million at December 31, 2005.

More detailed financial information can be found in the 10-Q filing, which can be accessed through FHLBank's Web site at www.fhlb-pgh.com, or on the SEC's Web site at www.sec.gov.

FHLBank Pittsburgh is a wholesale bank that serves the housing finance and community and economic development needs of its owner-members. FHLBank Pittsburgh provides reliable access to low-cost funds, competitive pricing in the purchase of mortgage loans, correspondent banking, technical assistance, affordable housing grants and other programs so members can better serve their own communities. FHLBank Pittsburgh is privately capitalized and funded, does not use taxpayer dollars, and enjoys a triple-A rating. It currently has 333 members in its district of Delaware, Pennsylvania and West Virginia and approximately $78.3 billion in assets. FHLBank Pittsburgh is one of twelve Banks in the Federal Home Loan Bank System, established by Congress in 1932 to support the residential mortgage activities of local financial institutions.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as "projected," "expects," "may," or their negatives or other variations on these terms. FHLBank Pittsburgh cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.