PRESS RELEASES

"Since 'CAP 1' went on the market last month, we have significantly broadened the market by making a CAP account available to every client," said Don McMullen, executive vice president and head of First Union's Capital Management Group. "Throughout First Union's franchise, about 50-60 people a day are investing with 'CAP 1' -- people who were not able to invest a month ago."

"Twelve years of experience in offering the CAP Account have shown us how to engineer this account to suit different market groups that other financial institutions have not captured thus far," McMullen said. "With its convenience, control, cost savings and a minimum investment of just $2,500, no one else in the business offers an account equal to this capability today."

While First Union's original CAP Account requires a minimum deposit of $15,000 of assets in any combination of cash and securities, "CAP 1" is available to anyone with a minimum deposit of $2,500 in assets combined with a systematic investment plan (SIP) of $50 per month, or a minimum of $5,000 without the SIP.

Through First Union Brokerage Services, "CAP 1" offers: Broker Direct (telephone-based investment advice) brokerage services dividend reinvestment on selected stocks owned margin access upon request two overnight investment sweep options so that idle cash is always fully invested a gold credit card checks and a regular checking account. The annual fee for "CAP 1" is $50. "CAP 1 for Kids" and "CAP 1 for Graduates" accounts are available with a waiver of the $50 annual fee.

CAP is an asset management account that combines everyday banking and brokerage services through our broker-dealer, First Union Brokerage Services, Inc., into one account. It offers simplicity and convenience. It simplifies customers' finances and allows their money to be easily invested to help meet longer term investment goals. First Union is one of only a handful of financial institutions nationwide that offers an asset management account jointly through its banking and brokerage arms. It has been extremely successful in competing against similar accounts offered by brokerage houses.

First Union's CAP Account was dubbed by Smart Money Magazine in 1996 as "the oldest and probably the best of the new bunch [of bank managed accounts]." Since its introduction in 1985, total assets in CAP have grown to $25.2 billion through November 1997, up 37 percent from a year ago. The total number of CAP accounts has increased from 14,586 in 1992 to nearly 300,000 through November 1997, and First Union is opening an average of 9,000 new CAP accounts per month.

Brokerage services for First Union CAP and "CAP 1" Accounts are provided by First Union Brokerage Services, Inc., a registered broker-dealer, member of the National Association of Securities Dealers (NASD) and a non-bank affiliate of First Union Corporation.

In 1996, First Union Brokerage Services, Inc. ranked first among the nation's top ten bank-affiliated brokerages in a National Council of Individual Investors survey that compared commissions, proprietary mutual fund performance and disclosure practices.

The investment portion of CAP and "CAP 1" Accounts is not insured by the FDIC, is not endorsed or guaranteed by First Union National Bank and involves risk including possible loss of principal.

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