PRESS RELEASES

Capital Lease Funding has financed over $2 billion of credit tenant loans covering over 400 different properties net leased to more than 60 different credit tenants ranging from Wal-Mart and Home Depot to General Motors and Qwest. Capital Lease Funding also provides advisory services to institutions and individuals in the net-lease and asset-backed marketplace.

“Wachovia’s and Mr. Ranieri’s investment in Capital Lease Funding recognizes our valuable market franchise and further strengthens our balance sheet,” said Paul McDowell, chief executive officer of Capital Lease Funding. “This partnership will expand our ability to serve our customers’ needs as well as to take advantage of other credit tenant lease investment opportunities.”

“Wachovia Securities has long been a leader in the synthetic-lease and sale-lease-back arenas,” said Bill Green, head of Real Estate Capital Markets for Wachovia Securities. “Our investment in Capital Lease Funding complements these specialty finance businesses, allowing us to participate more directly in the credit lease market.”

“Capital Lease Funding’s national origination network and breadth of product line, combined with its dedicated staff and extensive expertise in structuring and underwriting loans, uniquely positions it for future growth. By becoming an equity partner with Capital Lease Funding, I will be able to participate in the growth of this attractive market segment with the market leader,” said Lewis Ranieri, chairman of Hyperion Partners.

Capital Lease Funding is based in New York and was founded in 1995. The company pioneered the development of the underwriting structures and methodologies that permit credit lease loans to be securitized in the capital markets. In 1997, Capital Lease Funding securitized the first rated multi-tenant pool of enhanced credit tenant loans.

Wachovia Corporation (NYSE:WB), created through the September 1, 2001, merger of First Union and Wachovia with assets of $326 billion as of September 30 and $29 billion in stockholders' equity, is a leading provider of financial services to 19 million retail and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices under the First Union and Wachovia names in 11 East Coast states and Washington, D.C., and offers full-service brokerage with offices in 48 states and global services through more than 30 international offices. Online banking and brokerage products and services are available through wachovia.com and firstunion.com.

Important Notice: Wachovia Securities is the trade name under which Wachovia Corporation conducts its investment banking, capital markets and institutional securities business through First Union Securities, Inc. (“FUSI”), Member NYSE, NASD, SIPC, and through other bank and non-bank and broker-dealer subsidiaries of Wachovia Corporation.

First Union Securities is the trade name under which Wachovia Corporation conducts its asset management and mutual fund, brokerage and insurance businesses through: (1) First Union Securities, Inc. (“FUSI”), a registered broker-dealer and member NYSE/NASD and SIPC; (2) First Clearing Corporation (“FCC”), a separately registered broker-dealer and member NYSE/NASD and SIPC, providing securities clearance and settlement services; (3) First Union Securities Financial Network Inc., a separately registered broker-dealer and member of the NASD and SIPC providing full-service brokerage services; (4) the Capital Management Group within First Union National Bank (“FUNB”), a national banking association, and its subsidiaries, providing asset management, lending, and fiduciary services; (5) various subsidiaries within Wachovia Corporation providing investment advisory, administrative and other services to the Evergreen and Mentor families of mutual funds; and (6) various wholly-owned state insurance agencies.

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