PRESS RELEASES

The Galtney Group is the leading independent property and casualty insurance broker focused exclusively on the healthcare industry.  Through its subsidiaries, the company specializes in structuring and placing medical malpractice and professional liability insurance policies for a wide range of medical professionals including hospital directors and officers, and physicians and hospitals involved in managed care.  In 2000, The Galtney Group placed approximately $300 million in premiums for its clients.

“The Galtney Group’s strong presence and long-standing relationships in the healthcare sector are an excellent match for the high-quality, global platform of Arthur J. Gallagher & Co.,” said Joe Kavanagh, of First Union Securities’ Financial Services Investment Banking Group. “The  transaction represents a continuation of the high level of acquisition activity we are currently seeing in the insurance brokerage sector, in which specialty and traditional insurance brokers are being actively pursued by many of the large national insurance brokers, banks and other financial institutions.”

First Union Securities Financial Services Investment Banking Group is comprised of more than 15 professionals with in-depth industry expertise, and offers the full array of capital markets products to solve the strategic needs of clients.  The group provides services to the insurance, specialty finance, e-finance and asset management sectors.

First Union (NYSE: FTU), with $253 billion in assets and stockholders' equity of $16 billion at March 31, 2001, is a leading provider of financial services to 15 million retail and corporate customers throughout the East Coast and the nation.  The company operates full-service banking offices in 11 East Coast states and Washington, D.C., and full-service brokerage offices in 47 states and internationally. Online banking products and services can be accessed through www.firstunion.com.

Important Notice: First Union Securities is the trade name under which Charlotte based First Union Corporation conducts its investment banking, merger and acquisition, asset management and mutual fund, brokerage and insurance businesses.

First Union Securities includes: (1) First Union Securities, Inc. (“FUSI”), a registered broker-dealer and member NYSE/NASD and SIPC providing investment banking, merger and acquisition advisory and brokerage services to corporations, individuals and other institutions throughout the United States; (2) First Clearing Corporation (“FCC”), a separately registered broker-dealer and member NYSE/NASD and SIPC, providing securities clearance and settlement services; (3) the Capital Markets and Capital Management Groups within First Union National Bank (“FUNB”), a national banking association, and its subsidiaries, providing asset management, lending, structured finance risk management, derivatives, and fiduciary services to institutions and individuals; (4) various subsidiaries within First Union Corporation providing investment advisory, administrative and other services to the Evergreen and Mentor families of mutual funds; and (5) various wholly-owned state insurance agencies.

Stocks, bonds, mutual funds or other securities offered or sold through First Union Corporation or any of its bank or non-bank subsidiaries are not deposits of any bank and are not insured, guaranteed or otherwise protected by the Federal Deposit Insurance Corporation or any other government agency; are not endorsed or guaranteed by First Union Corporation, FUNB or any bank; and involve investment risk, including possible loss of principal.