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2nd QUARTER 2005 COMPARED WITH 2nd QUARTER 2004

• Record net income up 32 percent as revenues rose at twice the pace of expenses. Results include the impact of acquisitions.
• Merger savings and expense discipline drove a 417 basis point improvement in the overhead efficiency ratio to 59.29 percent.
• Credit quality continued to be exceptional with annualized net charge-offs of 0.09 percent of average loans and total nonperforming assets at a record low 0.44 percent of loans, foreclosed properties and loans held for sale.
• Solid sales activity, good merger integration progress and record customer satisfaction and loyalty overcame challenging industry trends.

Lines of Business Highlights: General Bank, Capital Management, Wealth Management, Corporate and Investment Bank

CHARLOTTE, N.C. – Wachovia Corp. (NYSE:WB) today reported record net income of $1.65 billion, or a record $1.04 per share, in the second quarter of 2005 compared with $1.25 billion, or 95 cents per share, in the second quarter of 2004.

Excluding after-tax net merger-related expenses of 3 cents per share in the second quarter of both years, second quarter 2005 earnings were $1.70 billion, or a record $1.07 per share, compared with $1.30 billion, or 98 cents per share, in the second quarter of 2004.

“Our team generated excellent second quarter results by focusing on the right things: serving our customers and maintaining expense discipline,” said Ken Thompson, Wachovia chairman and chief executive officer. “We’re seeing great execution on our revenue strategies and expense initiatives, which produced a dramatic improvement in our overhead efficiency ratio. Once again, our diversified business model produced record results despite the industry-wide narrowing of net interest margins and weak retail brokerage and trading environment. In addition, we’re benefiting from the smooth integration of SouthTrust, which continues on track and on budget. I’m confident we’re building a strong foundation for future growth.”

In the second quarter of 2005 compared with the second quarter of 2004, Wachovia:

• Increased revenue 16 percent. Revenue growth largely reflected the acquisitions of SouthTrust Corporation on November 1, 2004, and the Palmer & Cay, Inc., insurance brokerage firm on May 6, 2005.
  • Higher loans and deposits, largely related to SouthTrust, boosted net interest income 17 percent.
  • Fee and other income grew 14 percent. In addition to the acquisition impact, growth reflected stronger service charges, investment banking fees, asset securitizations and securities gains, partially offset by lower retail brokerage commissions and weaker trading profits.
• Achieved merger and other expense efficiencies, limiting noninterest expense growth to 8 percent.
• Had a provision for credit losses of $50 million. Net charge-offs declined 25 percent to $51 million, or an annualized 0.09 percent of average net loans. Total nonperforming assets including loans held for sale were $1.07 billion, or 0.44 percent of loans, foreclosed properties and loans held for sale at June 30, 2005.

Lines of Business

The following discussion covers the results for Wachovia’s four core business segments and is on a segment earnings basis, which excludes net merger-related and restructuring expenses and other intangible amortization. Segment earnings are the basis on which Wachovia manages and allocates capital to its business segments. Pages 13 and 14 include a reconciliation of segment results to Wachovia’s consolidated results of operations in accordance with GAAP.

General Bank

The General Bank includes retail, small business and commercial customers. Results include the impact of the fourth quarter 2004 acquisition of SouthTrust. Key General Bank trends in the second quarter of 2005 compared with the second quarter of 2004 included:

• 24 percent revenue growth driven by 27 percent higher net interest income and 14 percent higher fee and other income, largely due to SouthTrust.
  • Strength in low-cost core deposits as well as higher commercial and consumer loans largely related to SouthTrust drove the increase in net interest income.
  • Increased fee and other income, in addition to SouthTrust, was driven by strong debit card interchange income, offset by continued weakness primarily in commercial service charges.
• 16 percent growth in noninterest expense due to SouthTrust.
• Strong expense management and merger efficiencies, which drove improvement in the overhead efficiency ratio to a record 48.18 percent.

Capital Management

Capital Management includes retail brokerage services and asset management. Key Capital Management trends in the second quarter of 2005 compared with the second quarter of 2004 included:

• Relatively flat revenue was offset by lower expenses to deliver 13 percent earnings growth.
  • Fee and other income was dampened by sluggish retail brokerage transaction activity, which largely offset an increase in recurring and other income. Fee income in the second quarter this year was lower than a year ago by $21 million from divested businesses.
  • Net interest income growth of 19 percent largely due to average core deposits growth of 22 percent primarily related to the FDIC-insured money market sweep product.
• A 5 percent decline in expenses primarily due to efficiencies gained from the now-completed retail brokerage integration, driving a 242 basis point improvement in the overhead efficiency ratio.
• Total assets under management of $254.0 billion at June 30, 2005, which were essentially stable from December 31, 2004. Positive equity mutual fund sales were offset by declining equity market valuations.
• Total brokerage client assets reached a record $655.6 billion at June 30, 2005.

Wealth Management

Wealth Management includes private banking, personal trust, investment advisory services, charitable services, financial planning and insurance brokerage. Results include the impact of the May 6, 2005, acquisition of Palmer & Cay, Inc., an insurance brokerage firm. Key Wealth Management trends in the second quarter of 2005 compared with the second quarter of 2004 included:

• Strong revenue growth driven by a 21 percent increase in both net interest income and fee and other income.
  • Net interest income growth was fueled by strength in both consumer and commercial lending and growth in average core deposits. Compared with the first quarter of 2005, average core deposits were essentially flat as growth was offset by a shift in money market deposits to off-balance sheet investment alternatives.
  • Fee and other income growth included $30 million from the Palmer & Cay acquisition. In addition, higher trust and investment management fees and insurance commissions offset a decline in commercial service charges.
• 15 percent expense growth, which included $26 million related to the Palmer & Cay acquisition.
• 350 basis point improvement in the overhead efficiency ratio.

Corporate and Investment Bank

The Corporate and Investment Bank includes corporate lending, investment banking, and treasury and international trade finance. Key trends in Corporate and Investment Bank second quarter 2005 results compared with the second quarter of 2004 included:

• A slight decline in revenue as higher fee and other income was more than offset by lower net interest income.
  • Net interest income declined 13 percent due primarily to higher funding costs resulting from the second quarter 2004 resolution of tax matters relating to our commercial leasing portfolio.
  • Fee income increased 11 percent on 29 percent growth in advisory and underwriting results, driven by strong merger and acquisition advisory activity, loan syndications and investment grade underwriting, and higher other income, including growth in asset-backed/structured products.
• A 15 percent increase in noninterest expense due primarily to increased strategic hiring in key positions. Increased expense and slightly lower revenue resulted in a higher overhead efficiency ratio.
• Strong core deposit growth primarily from higher commercial mortgage servicing and international money market deposits and increased loans primarily reflecting higher leasing balances due to the income tax settlement and to SouthTrust.
• Economic capital usage increased due to higher loan balances and an increased expense base.

Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with retail operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Wachovia had assets of $511.8 billion, market capitalization of $78.2 billion and stockholders’ equity of $47.9 billion at June 30, 2005. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve 13 million household and business relationships primarily through 3,126 offices in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, also serves clients through 699 offices in 49 states and five Latin American countries. Our Corporate and Investment Bank serves clients primarily in 10 key industry sectors nationwide. Global services are offered through 33 international offices. Online banking and brokerage products and services also are available through Wachovia.com.

Forward-Looking Statements
This news release contains various forward-looking statements. A discussion of various factors that could cause Wachovia Corporation's actual results to differ materially from those expressed in such forward-looking statements is included in Wachovia's filings with the Securities and Exchange Commission, including its Current Report on Form 8-K dated July 19, 2005.

Explanation of Wachovia’s Use of Certain Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this news release includes certain non-GAAP financial measures, including those presented on page 1 and on page 10 under the captions “Earnings Excluding Merger-Related and Restructuring Expenses” and “Earnings Excluding Merger-Related and Restructuring Expenses, and Other Intangible Amortization”, and which are reconciled to GAAP financial measures on pages 21 and 22. In addition, in this news release certain designated net interest income amounts are presented on a tax-equivalent basis, including the calculation of the overhead efficiency ratio.

Wachovia believes these non-GAAP financial measures provide information useful to investors in understanding the underlying operational performance of the company, its business and performance trends and facilitates comparisons with the performance of others in the financial services industry. Specifically, Wachovia believes the exclusion of merger-related and restructuring expenses and the cumulative effect of a change in accounting principle permits evaluation and a comparison of results for on-going business operations, and it is on this basis that Wachovia’s management internally assesses the company’s performance. Those non-operating items are excluded from Wachovia’s segment measures used internally to evaluate segment performance in accordance with GAAP because management does not consider them particularly relevant or useful in evaluating the operating performance of our business segments. In addition, because of the significant amount of deposit base intangible amortization, Wachovia believes the exclusion of this expense provides investors with consistent and meaningful comparisons to other financial services firms. Wachovia’s management makes recommendations to its board of directors about dividend payments based on reported earnings excluding merger-related and restructuring expenses, other intangible amortization and the cumulative effect of a change in accounting principle, and has communicated certain dividend payout ratio goals to investors on this basis. Management believes this payout ratio is useful to investors because it provides investors with a better understanding of and permits investors to monitor Wachovia’s dividend payout policy. Wachovia also believes the presentation of net interest income on a tax-equivalent basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry standards. Wachovia operates one of the largest retail brokerage businesses in our industry, and we have presented an overhead efficiency ratio excluding these brokerage services, which management believes is useful to investors in comparing the performance of our banking business with other banking companies.

Although Wachovia believes the above non-GAAP financial measures enhance investors’ understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures.

Earnings Conference Call and Supplemental Materials
Wachovia CEO Ken Thompson and CFO Bob Kelly will review Wachovia's second quarter 2005 results in a conference call and audio webcast beginning at 10 a.m. Eastern Daylight Savings Time today. This review may include a discussion of certain non-GAAP financial measures. Supplemental materials relating to second quarter results, which also include a reconciliation of any non-GAAP measures to Wachovia’s reported financials, are available on the Internet at Wachovia.com/investor, and investors are encouraged to access these materials in advance of the conference call.

Webcast Instructions: To gain access to the webcast, which will be "listen-only," go to Wachovia.com/investor and click on the link "Wachovia Second Quarter Earnings Audio Webcast." In order to listen to the webcast, you will need to download either Real Player or Media Player.

Teleconference Instructions: The telephone number for the conference call is 1-888-357-9787 for U.S. callers or 1-706-679-7342 for international callers. You will be asked to tell the answering coordinator your name and the name of your firm. Mention the conference Access Code: Wachovia.

Replay: Tuesday, July 19, at 12 p.m. EDT and continuing through 5 p.m. EDT Friday, August 19. Replay telephone number is 1-706-645-9291; access code 6891035.

Investors seeking further information should contact the Investor Relations team: Alice Lehman at 704-374-4139, Ellen Taylor at 704-383-1381 or Jeff Richardson at 704-383-8250. Media seeking further information should contact the Corporate Media Relations team: Mary Eshet at 704-383-7777 or Christy Phillips at 704-383-8178.