AUBURN NATIONAL BANCORPORATION INC

QUANTITATIVE

AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

The information called for by ITEM 3 is set forth in ITEM 2 under the caption

“MARKET AND LIQUIDITY RISK

MANAGEMENT” and is incorporated herein by reference.

The Company, with the participation

of its management, including its Chief Executive Officer and

Chief Financial Officer,

carried out an evaluation of the effectiveness of the design and operation

of its disclosure controls and procedures (as

defined in Rules 13a-15(e)

and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the

period covered by this report. Based upon that evaluation and as of the end of the period covered by this report,

the

Company’s Chief Executive Officer

and Chief Financial Officer concluded that the Company’s

disclosure controls and

procedures were effective to allow timely decisions regarding disclosure

in its reports that the Company files or submits to

the Securities and Exchange Commission under the Securities Exchange Act of 1934,

as amended. There have been no

changes in the Company’s internal control

over financial reporting that occurred during the period covered by this report

that have materially affected, or are reasonably likely to

materially affect, the Company’s

internal control over financial

reporting.

PART

II. OTHER INFORMATION