AUBURN NATIONAL BANCORPORATION INC

In addition to the other information set forth in this report, you should carefully consider

the factors discussed in Part I,

in the Company’s Annual

which could materially affect our business, financial condition

or future results. The risks described in our annual report on

Form 10-K are not the only the risks facing our Company.

The persistence of inflation above the Federal Reserve’s

long

term targets, and the maintenance of or further increases in,

tightened Federal Reserve monetary policy by increased target

interest rates and reductions in the Federal Reserve’s

securities portfolio, have and are expected to continue to affect

the

levels of interest rates, mortgage originations and income, the market values of

our securities portfolio and loans and have

resulted in unrealized losses that have adversely affected our stockholders’

equity.

These have affected and are expected to

continue to affect our deposit costs and mixes, and consumer savings

and payment behaviors.

These may also affect our

borrower’s operating costs, expected returns and cash flows

available to service our loans.

Additional risks and

uncertainties not currently known to us or that we currently deem to be

immaterial also may materially adversely affect our

business, financial condition, and/or operating results in the future.