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Media Contact: Danielle Dietz
(704) 383-5392

April 16, 2000
First Union Securities, Inc. Advises US LEC on Investments from Thomas H. Lee Partners and Bain Capital

CHARLOTTE, NC - First Union Securities, Inc. recently served as financial advisor and placement agent for leading telecommunications company US LEC Corp. (NASDAQ: CLEC) in raising equity financing in the amount of $300 million.

The convertible preferred stock investments were provided by Bain Capital, Inc. and Thomas H. Lee Partners, L.P. and will help fund US LEC's growth strategies and product portfolio expansion. Bain Capital, Inc. and Thomas H. Lee have initially funded $200 million at a conversion price of $35 per share. The investors have an option to purchase an additional $100 million of convertible preferred stock during the next year at a conversion price of $46.50 per share.

Christy Wright, the Director in First Union Securities' mergers and acquisitions group who led the transaction team, said, "This was an important transaction for both USLEC and First Union. First Union brought significant relationships and expertise to this transaction, and we are delighted to have been able to play a significant role in finding the right investors to support US LEC's continued growth."

US LEC is a switch-based CLEC providing local, long-distance, data, Internet, and enhanced services to medium and large-sized businesses in the southern, mid-Atlantic, and northeastern United States.

First Union (NYSE:FTU), with $254 billion in assets and stockholders' equity of $17 billion at March 31, 2000, is a leading provider of financial services to 16 million retail and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices in 12 East Coast states and Washington, D.C., and full-service brokerage offices in 41 states. Online banking products and services can be accessed through www.firstunion.com.

Important Notice: First Union Securities is the trade name under which First Union Corporation conducts its investment banking, merger and acquisition, asset management and mutual fund, brokerage and insurance businesses.

First Union Securities includes: (1) First Union Securities, Inc. ("FUSI"), a registered broker-dealer and member NYSE/NASD and SIPC providing investment banking, merger and acquisition advisory and brokerage services to corporations, individuals and other institutions throughout the United States; (2) First Union Brokerage Services, Inc. ("FUBS"), a separately registered broker-dealer and member NASD and SIPC providing primarily retail brokerage services; (3) First Clearing Corporation ("FCC"), a separately registered broker-dealer and member NYSE/NASD and SIPC, providing securities clearance and settlement services; (4) the Capital Markets and Capital Management Groups within First Union National Bank ("FUNB"), a national banking association, and its subsidiaries, providing asset management, lending, structured finance risk management, derivatives, and fiduciary services to institutions and individuals; (5) various subsidiaries within First Union Corporation providing investment advisory, administrative and other services to the Evergreen and Mentor families of mutual funds; and (6) various wholly-owned state insurance agencies.

Stocks, bonds, mutual funds or other securities offered or sold through First Union Corporation or any of its bank or non-bank subsidiaries are not deposits of any bank and are not insured, guaranteed or otherwise protected by the Federal Deposit Insurance Corporation or any other government agency; are not endorsed or guaranteed by First Union Corporation, FUNB or any bank; and involve investment risk, including possible loss of principal.

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