PRESS RELEASES

The Public Sector Group consists of the newly formed Municipal Securities Group (MSG), headed by Alex Wallace, and the regionally managed Government Banking Division. The Municipal Securities Group is a consolidation of the firm's public finance and municipal finance divisions. The MSG will work in close partnership with First Union's Municipal Sales and Trading Desk, which is headed by James McCoy. These two groups are primarily responsible for the marketing and delivery of First Union's capital markets capabilities. The Government Banking Division remains primarily responsible for the more traditional banking products.

The Public Sector Group was designed to meet the unique needs of its targeted clients and the markets in which they borrow, invest and transact, and it capitalizes on First Union's business model of 50 percent securities and 50 percent traditional banking. The group will combine its regional-based delivery of depository, cash management and other traditional commercial banking products with its expertise in capital markets products and services.

"The new structure will enable us to continue to deliver our extensive capital markets capabilities to our traditional government, educational and not-for-profit client base. Furthermore, it will enhance our ability to sell traditional banking products and services to customers whose relationship with our company has historically been capital markets-based only," said Bracken. "Our coordinated cross-over model differentiates us in the marketplace."

First Union will continue to pursue senior-managed bond opportunities while leveraging the firm's balance sheet capabilities in the public market to provide increasing financing flexibility for its customers. In addition to its investment banking efforts, the group will continue to offer private placements, distribution, credit enhancements and risk management products.

During 2000, the Municipal Securities Group has teamed with Municipal Sales and Trading to underwrite 387 senior- and co-managed bond deals in the negotiated and competitive markets worth $9.9 billion. The Municipal Securities Group continues to be a leading provider for municipal credit facilities. To date the group has provided $200 million in private placements and more than $3 billion in credit enhancements in both the primary and secondary markets. The Municipal Sales and Trading Group is currently ranked eighth in competitive underwritings.

Through a comprehensive customer-management approach, First Union expects to add considerable value by broadening and deepening customer relationships while actively soliciting new clients. The group's team of market professionals and regional-based bankers will provide a full array of market-leading products in a coordinated fashion.

"Through a recent review of all products and service lines of business within First Union, we determined that we have an opportunity to prudently grow our business within this client sector," said Tom Pacer, EVP and head of First Union's Commercial Bank. "Today more than ever, we believe it is essential to constantly re-evaluate traditional business models in order to adapt to the ever-changing markets where our capabilities and our customers meet. Creating value for this specialized customer base through the use of our financial, intellectual and human capital remains our top priority."

The Public Sector Group includes 62 Government Banking employees strategically located throughout First Union's franchise. The Municipal Securities Groups 27 employees and Municipal Sales and Trading's 28 employees operate offices in Charlotte, N.C.; Chicago, Ill.; Hartford, Conn.; Orlando, Fla.; Philadelphia, Pa.; Richmond, Va.; Summit, N.J.; West Trenton, N.J.; and Washington, D.C.

About First Union Corporation

First Union (NYSE:FTU), with $258 billion in assets and stockholders' equity of $14 billion at June 30, 2000, is a leading provider of financial services to 15 million retail and corporate customers throughout the East Coast and the nation. As the nations sixth-largest brokerage, First Union operates full-service brokerage offices in 44 states and international offices worldwide, and full-service banking offices in 12 East Coast states and Washington, D.C. Online banking products and services can be accessed through www.firstunion.com.