CLEVELAND, June 2 /PRNewswire-FirstCall/ -- KeyCorp (NYSE: KEY) today announced it has increased the aggregate gross sales price of the common shares to be sold in connection with its previously announced "at-the-market" offering from $750 million to $1.0 billion and that it has successfully issued all $1.0 billion in new common shares.

Upon completion of the offering, Key will have issued 205,438,975 shares at an average price of $4.87 per share.

With the completion of this offering, KeyCorp will have raised approximately $1.3 billion of $1.8 billion in additional common equity as it moves to adjust its capital mix as required by the Supervisory Capital Assessment Program (SCAP) buffer set by the U.S. Department of the Treasury and Federal banking regulators. The $1.3 billion total includes exchanges of approximately $154 million of its Series A Convertible Preferred Stock for its common shares and the sale of select securities and assets providing approximately $127 million in common equity.

Key currently anticipates that further exchanges of its Series A Convertible Preferred Stock and trust preferred securities for its common shares, together with additional securities and other asset sales, will fund the balance of the $1.8 billion.

"We are pleased to have completed this significant portion of our capital activities," said Henry L. Meyer III, KeyCorp chief executive officer. "We'll focus now on completing the remaining capital activities which will fortify Key should the economy deteriorate later this year and these conditions persist through 2010. It is our intention to be in a position to repay the TARP Capital Purchase Program investment as promptly as permitted."

Cleveland-based KeyCorp is one of the nation's largest bank- based financial services companies, with assets of approximately $97 billion. BusinessWeek Magazine named Key the top bank in its Customer Service Champ 2009 edition, ranking Key 11th out of the top- 25 companies that include many known for their customer service acumen. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. For more information, visit https://www.key.com/.

KeyCorp has filed registration statements (including a prospectus) with the SEC for the offerings to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the company has filed with the SEC for more complete information about the company and this offering.