PRESS RELEASES

Contact: Arati Sontakay
(704) 383-6996

March 02, 1999
First Union's Global Cash Management Division Launches Electronic Check Processing at Point of Sale
Customers can reduce deposit expenses and fraud with electronic check technology

CHARLOTTE--First Union's Global Cash Management Division introduces Electronic Check Processing at Point of Sale as an easy, inexpensive alternative to traditional paper check processing. Customers can reduce deposit expenses and fraud by using this innovative technology.

Electronic Check collection offers several advantages, especially for companies with many locations such as a retail chain, including:

Reduction of fraud by verifying check data against sophisticated fraud prevention databases; Increased probability of collecting return items by using the Automated Clearing House; and Simplified cash flow management by eliminating multiple depository accounts in favor of one consolidated account.

"We are delighted to be among the first in offering this electronic commerce service," said Nina Archer, Head of Global Cash Management and Executive Vice President. "Electronic Check Processing at Point of Sale is a convenient way for our customers to continue the migration from paper to electronic commerce because most companies have the necessary infrastructure in place."

Electronic Check Processing works quickly. When a customer pays with a paper check, the checkout clerk scans the check and the data is transmitted to the Electronic Check system. Within ten seconds, the check data is verified to protect against fraud, and the clerk gets a warning or an acceptance notice. If accepted, the voided check is returned to the customer and the point of sale system creates an electronic Automated Clearing House payment in its place.

Creative Hairdressers Inc., a longtime First Union customer, will pilot Electronic Check Processing at Point of Sale in up to 20 locations for several months. The Virginia company operates 700 HairCuttery locations along the East Coast.

"First Union is progressive and quick to roll out technology after thorough research and testing," said Lawrence Hirsh, Creative Hairdressers' Treasurer. "Electronic Check Processing promises to have several benefits. Our revenues will be consolidated into one account instead of the many different bank accounts our locations must maintain currently. In addition, the electronic returns will cost less than checks on a transaction charge basis."

"We are committed to being a leader in bringing innovative technology to market. Our goal is to enhance and protect our customers' treasury activities, said Michael Daley, Global Cash Management Head of Product Development and Senior Vice President. "Corporate check fraud is a concern for our customers, and the Electronic Check Processing at Point of Sale service minimizes risk of fraud and expedites the returns process.

In May, First Union's Global Cash Management Division announced a $70 million commitment to new product development over the next two years. Priorities include enhancing international trade and payment products to better suit customers' global reach and focusing on technology that gives customers direct access to products, information, fulfillment and servicing.

Electronic commerce, Internet services, nationwide lockbox processing and a variety of PC-based options are among the many cash management services available at First Union. First Union offers a full range of collection, disbursement, information reporting and electronic commerce services designed to improve day-to-day efficiency of company treasury operations and maximize company return on cash assets. First Union's cash management products have earned top marks in surveys by Phoenix-Hecht and Ernst & Young. First Union is the third largest cash management bank in the country, according to Ernst & Young.

Charlotte-based First Union Corporation is the nation's sixth-largest bank with assets of $237 billion. First Union serves more than 16 million retail and commercial customers and has offices throughout the East Coast from Florida to Connecticut.

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