PRESS RELEASES

Contact: Tara Bullock
(704) 383-8164

July 07, 1998
LEAH KITTLESON WINS $25,000 IN FIRST UNION "CAP ACCOUNT INVESTMENT CHALLENGE"

ORLANDO - - Leah Kittleson of Mt. Plymouth is the winner of the First Union CAP Account Investment Challenge grand prize. After outperforming more than 3,920 competitors in the Orlando area, she will be awarded a "big check" for $25,000 during a surprise visit by Marshall Vermillion, First Union area president.

In May, First Union launched the CAP Account Investment Challenge as a unique program, open to the public, encouraging Florida residents to learn about investment tools, increasing awareness of First Union's combined banking and investment account, and supporting local Reading is Fundamental((RIF) chapters (First Union made a cash donation for each contest applicant). Applicants "invested" $15,000 in "fun" money by choosing three New York Stock Exchange (NYSE) stocks. Because the contest focused on investing, applicants had to keep their initial stock picks for the duration of the contest.

The CAP Account Investment Challenge raised more than $7,900 to be donated to local RIF initiatives as part of First Union's Excellence in Education program, a component of First Union's "Keep Florida Green" campaign. RIF is the oldest and largest children's literacy nonprofit organization in the United States.

Mrs. Kittleson's "stock portfolio" increased in value by 19.20 percent, netting her first place. The second place portfolio had a 16.63 percent increase. The contest lasted from May 11, 1998 until June 5, 1998.

First Union Corporation (NYSE:FTU) is the nation's sixth largest bank holding company and a leading provider of financial services to more than 16 million retail and corporate customers along the East Coast and throughout the nation. At March 31, 1998, First Union had assets of $220 billion. Total stockholders' equity was $16 billion. The company operates full-service banking offices in Connecticut, Delaware, Florida, Georgia, Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and Washington, D.C.

OTHER DATA:

NYSE Composite for the same period: +.006%
DOW performance for the same period: -.06%
36% of contestants had a positive portfolio change. Of those, the average portfolio change was 3.3%, equal to 39.6% annualized over 12 months
Top 25% of contestants had a portfolio change of 4.49%, equal to 53.84% annualized over 12 months
Top 50 contestants had a portfolio change of 11.5%, equal to 138.01% annualized over 12 months

-- END --