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The private placement represents an expansion of a longtime relationship that First Union has had with the Giants. The relationship began in 1976 with First Fidelity, which was acquired by First Union Corp. last year. First Union is the Giants' lead financial institution and provides the franchise a number of cash management and institutional trust services.

"First Union has been a tremendous partner over the years and we are pleased with the results of this transaction," said John K. Mara, general counsel and executive vice president for the Giants. "This private placement will allow us to reduce our financing costs and better manage our interest rate exposure, as well as expand our sources of financing and restore availability under our bank credit facility. We will be able to better meet our long-term capital needs through this financing."

Private placements typically are used by corporations to raise fixed interest rate capital and gain longer amortization schedules than traditional bank financing.

"We think very highly of the Giants organization and are pleased to provide financing that meets its needs," said Mark R. Smith, First Union senior vice president and corporate banking sales manager in New Jersey. "The organization is extremely well managed and considered one of the top franchises within the NFL."

"This private placement is another illustration of how our capital markets capabilities allow us to provide the full range of financing options to meet our clients' needs," said Mark B. Mahoney, managing director and head of investment banking within First Union Capital Markets. "The corporate bank's deep knowledge of the Giants organization combined with our capital markets expertise resulted in a financial solution that was optimal for our client."

As a member of the National Football League since 1925, the Giants organization has been instrumental in advancing the popularity and appeal of professional football. The Giants have won 16 NFL divisional championships and six NFL championships, including Super Bowls XXI and XXV. The Giants organization is jointly owned by the Mara family (50 percent) and Preston R. Tisch (50 percent).

First Union continues to expand its presence in the sports franchise market. First Union has significant relationships with a number of sports organizations, including the New York Giants, Charlotte Hornets, Jacksonville Jaguars, Atlanta Braves, Miami Dolphins, Vancouver Grizzlies, Tampa Bay Devil Rays and Carolina Panthers.

The Giants transaction represents the 11th private placement completed this year by First Union Capital Markets Corp.'s Private Finance Group. The Group acts as agent in the placement of long-term private debt and equity to middle market companies. The Group consists of 10 professionals and is headed by Peter Barry, who joined from BT Securities earlier this year.

First Union has grown its capital markets business substantially over the last three years. In 1996, First Union Capital Markets reported a 75 percent increase in fee income to $464 million from 1995 and a 46 percent increase in pretax net income to $422 million. First Union Capital Markets Corp. is the investment banking subsidiary of First Union Corp.

Charlotte-based First Union Corp. is a leading provider of financial products and services to approximately 12 million customers nationwide. First Union is the nation's sixth-largest bank holding company with assets of $143 billion as of June 30, 1997. It operates financial centers in 12 Eastern states, as well as in Washington, D.C.

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