PRESS RELEASES

The division -- which will operate under the name First Capital Group -- will serve clients' investment and financial needs by providing a diverse array of products designed for the institutional marketplace. It will expand First Union's already b presence in the institutional market.

First Capital Group represents the latest expansion of First Union's accelerating asset management business. In just over three years, First Union has grown its mutual fund business from $3 billion to $32 billion and enhanced its brokerage, insurance, private banking and other business lines. Earlier this year, First Union formed First Investment Advisors to focus on serving the investment needs of the individual and family wealth market.

"First Capital Group is an integral part of First Union's strategic direction and continuing development of an asset management powerhouse," said Don McMullen, executive vice president and head of First Union's Capital Management Group. "First Capital Group will focus exclusively on institutional investors by offering an expanded menu of products and services, diverse portfolio management styles and a highly disciplined approach to money management aimed at ensuring b, consistent performance."

McMullen said First Capital Group is the culmination of more than two years of careful planning and structural enhancements within First Union's institutional investment management group. First Union already is a major institutional money management provider, with more than $16 billion of institutional assets under management, 11 existing investment products and 73 investment professionals who average over 19 years of investment experience.

Managers of First Capital Group include David Francis, managing director and chief investment officer; Glen Insley, director of fixed income; and Peter Nagle, director of sales and client services. Each has been instrumental in building First Union's success in the institutional marketplace.

First Capital Group's 11 existing institutional products -- seven fixed-income and four equity -- offer a diverse range of investment strategies to ensure diversification and meet the investment objectives of clients. Each of the products is managed by small, entrepreneurial teams that operate under well-defined investment principles. Later this year, a series of institutional mutual funds is planned to be introduced.

"Our strategy is to build upon our existing platform by providing institutional clients a full menu of products and services and offering them innovative and responsive solutions to meet their needs," Nagle said. "Our No. 1 priority is focusing on the needs of clients and making sure we are providing them the right mix of products that operate under the highest performance standards."

"We are excited to expand our business at a time when we believe there is tremendous opportunity within the institutional market," Francis said. "We plan to capitalize on that opportunity and continue our b growth through this more comprehensive approach to money management."

First Capital Group manages money in corporate, public and union pension funds, 401(k) and other retirement plans, endowments and foundations and capital reserve funds for corporations, government bodies and educational institutions.

Charlotte-based First Union Corp. is a leading provider of financial products and services to 12 million customers nationwide. First Union is the nation's sixth largest bank holding company with assets of $143 billion as of June 30, 1997.

-- FTU --