PRESS RELEASES

"Art's proven leadership during his tenure at HomEq, along with his excellent track record in multiple roles within our company, make him the obvious choice to lead this growing business,” said Bob Burton, Head of Specialty Finance for Wachovia. “He is passionate about the business opportunity and committed to building HomEq into a leader in the industry."

HomEq is a leading full service sub-prime loan servicing company comprised of 850 employees located on the West Coast in Sacramento and Roseville, Calif.; and 250 employees on the East Coast in Raleigh and Boone, N.C. The company provides a full range of mortgage servicing activities. Lyon will succeed Mark Hudson, who served as president since 2000. Hudson is retiring after 24 years with the company in a number of senior management roles.

Lyon has held key management positions in the financial services industry throughout his 21-year career, including senior management roles at First Union Mortgage Corporation, The Money Store and First Fidelity Bancorporation. He is a native of El Paso, Texas and holds a Master’s in business administration from the University of Texas at Austin; a Bachelor’s degree from Texas Tech University and is a certified public accountant. Lyon is married with two sons and is active in community programs throughout the Sacramento area.

HomEq is becoming a leader in the sub-servicing business by leveraging its experience in originating and servicing home equity and home improvement loans. The portfolio currently includes close to 420,000 loans, which equates to approximately $20 billion in outstanding principal balances. The company recently earned "Above Average" ratings from Standard & Poor's in the categories of Sub-Prime servicing and Alternative-A servicing, and is continuing to drive the positive momentum it has gained since its inception in June 2000.

Wachovia Corporation (NYSE:WB), created through the September 1, 2001, merger of First Union and Wachovia, had assets of $330 billion at December 31 and $28 billion in stockholders' equity. Wachovia is a leading provider of financial services 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 49 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.