Municipal Bond New Issues

RE: $2,000,000,000*
STATE OF CONNECTICUT
TAXABLE GENERAL OBLIGATION BONDS
(TEACHERS’ RETIREMENT FUND, 2008 SERIES)

WE HAVE A RELEASE FOR DAY 2 OF THE RETAIL ORDER PERIOD UNTIL 4:00PM, EDT, TODAY, TUESDAY, APRIL 8, 2008.

RETAIL ORDERS WILL BE TAKEN UNTIL 4PM EACH DAY DURING THE RETAIL ORDER PERIOD.

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SUBJECT TO CHANGE, WE EXPECT TO RUN A RETAIL ORDER PERIOD THROUGH MONDAY, APRIL 14 AND FORMALLY PRICE THIS ISSUE ON WEDNESDAY, APRIL 16, 2008.

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RULES FOR THE RETAIL ORDER PERIOD
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1.) THE SCALE IS SUBJECT TO CHANGE IN PRICING AND STRUCTURE AND WILL BE FINALIZED ON WEDNESDAY, APRIL 16, 2008.

2.) A “RETAIL” ORDER IS DEFINED AS AN ORDER PLACED FOR THE ACCOUNT
OF A U.S. RESIDENT.

3.) ORDERS SUBMITTED FOR BANK TRUSTS AND INVESTMENT ADVISORS MUST BE FOR THE BENEFIT OF INDIVIDUALS DOMICILED IN THE UNITED STATES.

4.) RETAIL ORDERS WILL BE LIMITED TO 1000M PER ORDER, HOWEVER, THE STATE OF CONNECTICUT RESERVES THE RIGHT TO WAIVE THE MAXIMUM ORDER
LIMIT AT ITS DISCRETION.

5.) RETAIL ORDERS DO NOT INCLUDE BANK PORTFOLIOS, INSURANCE COMPANIES OR MUTUAL FUNDS.

6.) THE STATE OF CONNECTICUT RESERVES THE RIGHT TO REQUEST COPIES OF ANY OR ALL CONFIRMATIONS OF SALE AND MAY RECOVER TAKEDOWN AMOUNTS SHOULD NON BONAFIDE ORDERS BE DISCOVERED. ZIP CODES WILL BE REQUIRED.

7.) AT THE END OF THE RETAIL ORDER PERIOD, ORDERS WILL BE FILLED SUBJECT TO FINAL PRICING, STRUCTURE AND RETAIL DEMAND. RETAIL ORDER CONFIRMATIONS WILL BE INCLUDED ON YOUR FINAL ALLOTMENT WIRE.

8.) RETAIL ORDERS WILL BE GIVEN PRIORITY ONLY DURING THE RETAIL ORDER PERIOD. PRIORITY OF ORDERS WILL CHANGE DURING THE INSTITUTIONAL PRICING.

– –
1,600,000,000*
2008 SERIES A- CURRENT INTEREST BONDS

*********************** ATTENTION **********************
THE BONDS ARE TAXABLE MUNICIPAL SECURITIES AND THIS OFFERING IS
SUBJECT TO REGULATION BY THE MUNICIPAL SECURITIES RULEMAKING BOARD. ALL ACTIVITY UNDERTAKEN WITH RESPECT TO THIS OFFERING MUST BE SUPERVISED BY A MUNICIPAL SECURITIES PRINCIPAL.

MOODY’S: Aa3 S&P: AA FITCH: AA
MOODY’S GLOBAL SCALE RATING: Aaa

DATED: 04/30/2008 FIRST COUPON: 09/15/2008

DUE: 03/15

TAKEDOWN
MATURITY AMOUNT* COUPON PRICE (pts)

03/15/2014 10,000M 4.20 % 100.00 1/2
03/15/2015 10,000M 4.40 % 100.00 1/2
03/15/2016 10,000M 4.55 % 100.00 1/2
03/15/2017 10,000M 4.65 % 100.00 1/2
03/15/2018 10,000M 4.75 % 100.00 1/2
03/15/2019 10,000M 4.875 % 100.00 1/2
03/15/2020 10,000M 4.95 % 100.00 1/2
03/15/2021 10,000M 5.00 % 100.00 1/2
03/15/2022 10,000M 5.05 % 100.00 1/2
03/15/2023 10,000M 5.10 % 100.00 1/2
03/15/2024 10,000M 5.15 % 100.00 1/2
03/15/2025 10,240M 5.20 % 100.00 1/2
03/15/2026 156,960M NO RETAIL ORDERS -
03/15/2027 180,360M NO RETAIL ORDERS -
03/15/2028 100,000M *STEPPED COUPON-SEE BELOW*

03/15/2032 1,042,440M NO RETAIL ORDERS -

CALL FEATURES: Optional call in 03/15/2018 @ 100.00

100,000,000*
STEPPED COUPON BONDS

MATURITY AMOUNT INITIAL COUPON PRICE TAKEDOWN
(pts)

03/15/2028 100,000M 5.00 % 100.00 1/2

*SUBJECT TO CHANGE

*THE FOLLOWING IS THE SCHEDULE OF STEP-UP DATES AND COUPON RATES.

STEP-UP DATE COUPON

03/15/2014 5.50 %
03/15/2019 5.75 %
03/15/2024 6.00%

CALL FEATURES: Optional call in 03/15/2014 @ 100.00

——————————————————————————–
400,000,000*
2008 SERIES B- CAPITAL APPRECIATION BONDS

MOODY’S: Aa3 S&P: AA FITCH: AA
MOODY’S GLOBAL SCALE RATING: Aaa

DUE: 03/15

Capital Appreciation Bonds

APPROX.
$ PRICE
PRINCIPAL MATURITY YLD TO PER TAKEDOWN
MATURITY AMOUNT* VALUE MAT $100 (%)

03/15/2014 - 7,710M 4.50 76.993 1/2
03/15/2015 16,833,294 NO RETAIL ORDERS -
03/15/2016 21,499,148 NO RETAIL ORDERS -
03/15/2017 25,861,313 NO RETAIL ORDERS -
03/15/2018 - 48,800M 5.10 60.816 1/2
03/15/2019 33,712,246 NO RETAIL ORDERS -
03/15/2020 37,216,557 NO RETAIL ORDERS -
03/15/2021 40,463,455 NO RETAIL ORDERS -
03/15/2022 43,516,704 NO RETAIL ORDERS -
03/15/2023 46,365,963 NO RETAIL ORDERS -
03/15/2024 49,116,529 NO RETAIL ORDERS -
03/15/2025 49,506,657 NO RETAIL ORDERS -

CALL FEATURES: No optional call

* - APPROXIMATE SUBJECT TO CHANGE

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PRIORITY OF ORDERS AS FOLLOWS:
1. Member

Order period until 4:00 P.M., E.D.T., today, Tuesday, 04/08/08.

The managers reserve the right to terminate or extend the order period prior to or later than the above mentioned time and date and to confirm bonds at their discretion.

The compliance addendum MSRB Rule G-11 will apply.

The award is expected on Wednesday, April 16, 2008.

Delivery is firm for April 30, 2008.

This issue is book entry through DTC.

Bear, Stearns & Co. Inc.
J.P. Morgan Securities Inc.
Merrill Lynch & Co.

Citigroup Global Markets Inc.
Lehman Brothers
M.R. Beal & Company
Morgan Stanley & Co. Incorporated
Ramirez & Co., Inc.
Siebert Brandford Shank & Co.
UBS Securities LLC

Banc of America Securities LLC
Belle Haven Investments, L.P.
DEPFA First Albany Securities LLC
Goldman, Sachs & Co.
Jackson Securities, LLC
Loop Capital Markets
Raymond James & Associates
Roosevelt & Cross, Inc.
RBC Capital Markets
Wachovia Bank, National Association
William Blair & Company, L.L.C.

Cabrera Capital Markets Inc.
Corby Capital Markets, Inc.
Estrada Hinojosa & Company
Melvin Securities
Prager, Sealy & Co., LLC
Rice Financial Products Company (formerly Apex Pryor Securities)
S.B.K- Brooks Investment Corp.
Sterne, Agee & Leach, Inc.
Webster Bank

By: Bear, Stearns & Co. Inc. New York, NY