PRESS RELEASES

January 06, 2002
Wachovia Securities Acts as Sole Advisor and Placement Agent in Private Equity Raise for Employers Direct Corporation

CHARLOTTE, NC -- Wachovia Securities, Inc., announced today that it served as sole advisor and placement agent in a $55.35 million private equity offering for Employers Direct Corporation, the parent of Employers Direct Insurance Company (“EDIC”), a newly-formed direct writer of workers’ compensation insurance, based in Glendale, Calif.

EDIC was founded by James E. Little, Chairman and Chief Executive Officer, and by Ronald A. Groden, Vice Chairman and Chief Financial Officer. With this initial private equity raise, EDIC enters the workers' compensation market with the support of Securitas Capital based in New York and Golden Gate Capital based in San Francisco. EDIC principals have also made significant personal investments in the company.

"Jim Little and Ron Groden are two of the most knowledgeable professionals in the workers' comp industry," said Joe Kavanagh, director in the Financial Institutions Investment Banking Group. "It was a privilege to advise Jim and Ron on the formation of their company and to raise the initial capital from a group of highly experienced private equity investors."

"Wachovia's effort in raising the capital for the company was exemplary," said EDIC's Little. "Its team of insurance investment banking professionals was critical to the successful creation of the company."

Wachovia Securities Financial Institutions Investment Banking Group is comprised of more than 20 professionals with in-depth industry expertise and offers a full array of capital markets products to solve the strategic needs of clients. The group provides services to the insurance, specialty finance and asset management sectors.

Wachovia Corporation (NYSE:WB), created through the September 1, 2001, merger of First Union and Wachovia, had assets of $334 billion and stockholder's equity of $32 billion at September 30, 2002. Wachovia is a leading provider of financial services to 20 million retail, brokerage and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices under the First Union and Wachovia names in 11 East Coast states and Washington, D.C., and offers full-service brokerage with offices in 49 states and global services through more than 30 international offices. Online banking and brokerage products and services are available through wachovia.com.

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