PRESS RELEASES

The program - the first of its kind - has been launched in North Carolina, Virginia, Maryland and Washington, D.C. It will be expanded in phases to other states within First Union's East Coast franchise.

The insurance will be sold through First Union Insurance Group, a full-service insurance affiliate of First Union Corp. Small business owners can contact the Small Business Insurance Center by calling 800-771-7004. An experienced, licensed account representative can provide a quote within 15 minutes.

"This strategic partnership with Hartford is consistent with our mission statement in proactively providing premier products and services to our customers through leading-edge systems at the lowest possible cost," said David de Gorter, president of First Union Insurance Group. "Providing insurance programs to small businesses is an integral part of our overall business strategy to offer an assortment of insurance products and services to meet the needs of our diverse customer base."

The partnership represents the first time an insurance company is partnering with a bank-affiliated agency to provide a direct response marketing and servicing commercial insurance program to small business customers.

The property-casualty insurance coverages available to First Union's small business customers through the Hartford partnership include workers' compensation, commercial automobile, general liability, commercial property and package, and umbrella liability.

Don McMullen, executive vice president and head of First Union's Capital Management Group, said the partnership underlines First Union's commitment to providing customers a full array of insurance and investment products. "First Union is fully dedicated to helping its corporate and individual customers meet their investment and business goals by providing innovative, customized financial solutions."

The Hartford has established a unit to handle all direct mail, direct response and servicing of First Union customers. Insurance claims will be handled 24 hours a day by Hartford claim representatives located throughout the country.

"Through this partnership, The Hartford can integrate its small business insurance expertise with its sophisticated marketing and servicing capabilities to provide superior insurance products and service to First Union's small business customers," said William Stanway, The Hartford's senior vice president of commercial operations.

Martha Hayes, senior vice president and head of First Union's Small Business Banking Division (SBBD), described the new insurance program as another value-added service for small business customers in addition to the traditional lending and depository relationships. Other services offered by SBBD include 24-hour turnaround time on loan decisions, a daily fax service with up-to-date account information, cash management, business and personal investment expertise, and a commercial CAP Account, which combines a company's banking and investment services into one consolidated account.

The Hartford (NYSE: HIG) is one of the nation's oldest and largest international insurance and financial services operations, with 1996 revenues of $12.5 billion. As of Dec. 31, 1996, The Hartford had assets of $108.8 billion and shareholder equity of $4.5 billion. It is a leading provider of commercial property and casualty insurance, automobile and homeowners coverages, and a variety of life insurance, annuities, employee benefits and asset management plans.

First Union Insurance Group offers a wide array of personal and business insurance products and services, including life, health, automobile, property and casualty and employee benefits. Last year, First Union Insurance Group was the leading bank provider of annuities with sales of more than $1 billion. Under the Bank Holding Company Act, First Union is grandfathered to sell insurance -- and has been doing so for more than 30 years.

Charlotte-based First Union Corp. (NYSE: FTU) is a leading provider of financial products and services to more than 12 million customers. First Union is the nation's sixth-largest bank holding company with assets of more than $136 billion as of March 31, 1997. It operates financial centers in 12 Eastern states from Connecticut to Florida, as well as in Washington, D.C.

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