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2nd QUARTER 2006 COMPARED WITH 2nd QUARTER 2005

• Strong execution generates record top line and bottom line results.
• 14 percent revenue increase fueled by March 1 Westcorp acquisition and organic growth.
• Revenue growth and expense discipline drive improved overhead efficiency ratio while investment for the future continues.
• 20 percent fee income growth, up in nearly every category.
• Average loans up 23 percent and average core deposits up 6 percent.
• Credit quality continues to be stellar, with nonperforming assets at a record low 0.25 percent.

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 $1.88 billion, or $1.17 per share, in the second quarter of 2006 compared with $1.65 billion, or $1.04 per share, in the second quarter of 2005.

Excluding after-tax net merger-related expenses of 1 cent per share in the second quarter of 2006 and 3 cents per share in the second quarter of 2005, earnings were $1.90 billion, or $1.18 per share, in the second quarter of 2006 compared with $1.70 billion, or $1.07 per share, in the second quarter of 2005.

"This was a strong quarter for Wachovia. In the face of a challenging yield curve environment, we generated double-digit revenue and earnings growth driven by solid execution. Our team delivered record results in three of our four major businesses, and the first full quarter of results in our new auto lending businesses exceeded our expectations," said Ken Thompson, Wachovia chairman and chief executive officer. "Our fundamentals remain strong with improving overhead efficiency, stellar asset quality and industry-leading customer service. We're excited about our prospects as we work with our merger partners to extend our brand promise to customers nationwide."

Results include the impact of the acquisition of Westcorp on March 1, 2006. Also announced during the quarter was the proposed acquisition of Golden West Financial Corporation, which is expected to close in the fourth quarter of this year.

In the second quarter of 2006 compared with the second quarter of 2005, Wachovia:

• Grew revenue 14 percent, driven by strong balance sheet growth and fee and other income related to solid capital markets results, including higher principal investing gains and strong trading profits.
  • Increased net interest income 8 percent, driven by strength in loans and deposits. Average commercial loans rose 12 percent, led by middle-market lending, while average consumer loans rose 39 percent due to higher real estate-secured loans, including the impact of year-end 2005 loan transfers from held for sale and Westcorp. Average core deposits rose 6 percent and average low-cost core deposits were up 3 percent. Balance sheet growth in conjunction with a flat yield curve resulted in 5 basis points of margin compression.
  • Generated a 20 percent increase in fee and other income, with growth in nearly every category. Results reflected strength in capital markets-related income, including the principal investing gains and stronger trading profits previously mentioned, as well as higher asset management and investment banking fees; record consumer service charges and strong interchange income. Securities gains were substantially less than gains in the second quarter a year ago.
• Noninterest expense rose 12 percent on higher personnel expense reflecting revenue-based incentives and the effect of the Westcorp acquisition.
• Recorded a provision for credit losses of $59 million. Net charge-offs were $51 million, or an annualized 0.08 percent of average net loans. Total nonperforming assets including loans held for sale were $741 million, declining to 0.25 percent of loans, foreclosed properties and loans held for sale.

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, other intangible amortization and discontinued operations. 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. Lines of business results reflect their respective amounts of stock compensation expense related to implementation of a new share-based payment accounting standard.

General Bank

The General Bank includes retail, small business and commercial customers. The second quarter of 2006 compared with the second quarter of 2005 included:

• Earnings of $1.2 billion on record revenue of $3.7 billion, driven by strong loan and deposit growth, including the impact of the Westcorp acquisition, and higher service charges driven by strength in consumer activity and higher debit card interchange fee income.
• 19 percent growth in average loans was led by real estate-secured loans and the addition of an average $14.0 billion from Westcorp. Higher interest spreads from the Westcorp portfolio partially offset the effect of a customer-driven shift from variable rate to fixed rate consumer real estate lending.
• Deposit growth led by consumer certificates of deposit and money market funds. Net new retail checking accounts increased by 327,000 year-to-date, compared with an increase of 270,000 in the same period of 2005.
• 25 percent growth in fee and other income included 31 percent growth in consumer service charges, 23 percent growth in debit card interchange income and 77 percent growth in mortgage banking income.
• 16 percent growth in noninterest expense included higher personnel costs related to hiring, de novo activity and branch consolidation, and increased revenue-based incentive expense, as well as the impact of Westcorp and costs related to reentering the credit card business. Despite the increased expense, the General Bank's overhead efficiency ratio declined 115 basis points to a record low 47.40 percent.

Capital Management

Capital Management includes retail brokerage services and asset management. The second quarter of 2006 compared with the second quarter of 2005 included:

• Record earnings of $195 million on 12 percent revenue growth, as strength in retail brokerage managed account fees overcame relatively flat brokerage transaction activity. Managed assets grew 35 percent to $121.9 billion.
• 41 percent growth in net interest income largely due to improved deposit spreads.
• 7 percent growth in noninterest expense primarily due to increased production-based commissions, employee stock compensation expense and the impact of two June 1, 2006, acquisitions. The overhead efficiency ratio improved 355 basis points to 78.33 percent due to strong net interest income growth, retail brokerage managed account fee growth and disciplined expense control.
• Total assets under management of $237.3 billion at June 30, 2006, were up 5 percent from June 30, 2005. Equity assets reached $90.6 billion, up 15 percent from June 30, 2005, including $5.5 billion in assets from the Metropolitan West Capital Management acquisition and market appreciation. Total brokerage client assets grew 3 percent from year-end 2005 and 7 percent from June 30, 2005.

Wealth Management

Wealth Management includes private banking, personal trust, investment advisory services, charitable services, financial planning and insurance brokerage. The second quarter of 2006 compared with the second quarter of 2005 included:

• A 9 percent decline in earnings as higher expenses largely related to implementation of a new investment platform and severance outpaced revenue growth.
• Revenue growth driven equally by net interest income and fee and other income growth.
• 5 percent growth in net interest income fueled by continued momentum in loans and growth in average core deposits.
• 5 percent growth in fee and other income reflected higher assets under management and a full quarter of insurance brokerage commissions related to the Palmer & Cay acquisition in May 2005. Trust and investment management fees were up modestly from a strong year ago period.
• Provision expense rose to $2 million.

Corporate and Investment Bank

The Corporate and Investment Bank includes corporate lending, investment banking, and treasury and international trade finance. Second quarter 2006 results compared with the second quarter of 2005 included:

• Record earnings of $522 million on the second highest quarter for revenue, following a record first quarter 2006.
• 32 percent revenue growth reflected a 54 percent increase in fee and other income offsetting a 4 percent decline in net interest income.
• Net interest income declined 4 percent, primarily due to spread compression in asset-based lending, cross-border leasing runoff, and a decline in trading-related income that was offset in trading profits.
• 54 percent growth in fee income reflecting strong investment banking results, primarily in trading, advisory and underwriting fees, as well as principal investing. The principal investing income included a $116 million unrealized gain in the fund portfolio.
• A 24 percent increase in noninterest expense due primarily to higher revenue-based compensation and strategic hiring in 2005, and the impact of acquisitions.
• Strong core deposit growth primarily from higher commercial mortgage servicing and international correspondent banking; loan growth primarily from higher corporate loans and international correspondent banking business.
• The provision reflected strong loan loss recoveries.

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Wachovia Corporation (NYSE:WB) is one of the nation's largest diversified financial services companies, providing 13.4 million household and business relationships with a broad range of banking, asset management, wealth management and corporate and investment banking products and services. Wachovia has retail and commercial banking operations in 16 states with 3,109 offices from Connecticut to Florida and west to Texas and California. Two core businesses operate under the Wachovia Securities brand name: retail brokerage in 49 states and in Latin America, and corporate and investment banking in selected industries nationwide. Globally, Wachovia serves clients through more than 40 international offices. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com, and investment products and services at evergreeninvestments.com. Wachovia had assets of $553.6 billion, market capitalization of $86.0 billion and stockholders' equity of $48.9 billion at June 30, 2006.

The proposed merger with Golden West Financial Corporation (NYSE: GDW), parent of World Savings Bank, is expected to close in the fourth quarter of 2006, pending shareholder and regulatory approval. With this proposed merger, Wachovia would strengthen its position in California, Texas, Florida, New Jersey and New York, and enter attractive metropolitan areas in five additional states: Arizona, Colorado, Illinois, Kansas and Nevada. The combined company would serve banking customers through 3,400 offices in 21 states and Washington, D.C. In addition, Wachovia would gain mortgage lending operations under the World Savings Bank name in 39 states.

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 20, 2006.

Additional Information

The proposed merger between Wachovia and Golden West (the "Merger") will be submitted to Wachovia's and Golden West's shareholders for their consideration, and, on June 1, 2006, Wachovia filed a registration statement on Form S-4 with the SEC containing a preliminary joint proxy statement/prospectus of Wachovia and Golden West and other relevant documents concerning the proposed Merger. Shareholders are urged to read the registration statement and the definitive joint proxy statement/prospectus regarding the proposed Merger when they become available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. You will be able to obtain a free copy of the registration statement and the joint proxy statement/prospectus, as well as other filings containing information about Wachovia and Golden West, at the SEC's website (http://www.sec.gov). You will also be able to obtain these documents, free of charge, at Wachovia's website (http://www.wachovia.com) under the tab "Inside Wachovia - Investor Relations" and then under the heading "Financial Reports - SEC Filings". Copies of the definitive joint proxy statement/prospectus and the SEC filings that will be incorporated by reference in the definitive joint proxy statement/prospectus can also be obtained, free of charge, by directing a request to Wachovia Corporation, Investor Relations, One Wachovia Center, 301 South College Street, Charlotte, NC 28288-0206, (704) 374-6782; or to Golden West, Investor Relations Department, 1901 Harrison Street, Oakland, CA 94612, (510) 445-3420.

Wachovia and Golden West and their respective directors and executive officers, may be deemed to be participants in the solicitation of proxies from the shareholders of Wachovia and/or Golden West in connection with the proposed Merger. Information about the directors and executive officers of Wachovia is set forth in the proxy statement for Wachovia's 2006 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 13, 2006. Information about the directors and executive officers of Golden West is set forth in the proxy statement for Golden West's 2006 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 10, 2006. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the definitive joint proxy statement/prospectus regarding the proposed Merger when it becomes available. You may obtain free copies of these documents as described in the preceding paragraph.

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", "Earnings Excluding Merger-Related and Restructuring Expenses, and Discontinued Operations" and "Earnings Excluding Merger-Related and Restructuring Expenses, Other Intangible Amortization and Discontinued Operations", 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, discontinued operations 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, discontinued operations 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 Tom Wurtz will review Wachovia's second quarter 2006 results in a conference call and audio webcast beginning at 10 a.m. Eastern Daylight Saving 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 888-357-9787 for U.S. callers or 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: Thursday, July 20, at 2 p.m. EDT and continuing through 5 p.m. EDT Friday, August 25. Replay telephone number is 706-645-9291; access code: 1921744.

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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.