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Contact: Arati Sontakay
(704) 383-6996

April 06, 1998
First Union Gets "A+" Grades for Cash Management Products in National Phoenix-Hecht Quality Index

CHARLOTTE-First Union's Cash Management Division earned top marks for the performance of its wholesale lockbox, wire transfer, controlled disbursement and Automated Clearing House products in Phoenix-Hecht's 1998 Cash Management Monitor. This market research survey polled 1,062 senior financial executives of U.S. corporations with sales of more than $100 million.

First Union scored three A+ grades and six A grades for these products used by companies in the $100 million to $500 million sales category. This quality assessment focused on speed and accuracy of processing and reporting, timeliness, reliability and error correction. Phoenix-Hecht surveys cash management products and services once every two years.

"This benchmark study confirms our commitment to deliver superior quality products, and we are proud to get the best grades possible," said Nina Archer, First Union Senior Vice President and Head of the First Union Cash Management Division. "Quick processing and accuracy are important to our customers, and we have worked hard to meet their needs through electronic product development and focus on technology."

Product areas included in the survey are:

Wholesale Lockbox
- processing and reporting accuracy
- processing speed
Wire Transfers
- timeliness of initiation and processing
- accuracy and reliability
Controlled Disbursement
- timeliness,
- consistency, and
- accuracy of notification
Automated Clearing House
- speed of error correction
- processing and reporting accuracy

First Union scored high on these products despite the dramatic drop in overall provider quality documented by the survey, and First Union also has the largest market share at 19.7% in the upper-middle market, according to Phoenix-Hecht. "Overall we believe that the cash management business has grown by 13% for the upper-middle market," according to David Bochnovic, Phoenix-Hecht Executive Vice President. The Phoenix-Hecht Cash Management Monitor surveys companies on a broad array of cash management issues, including pricing, quality of service, product usage and future plans and intentions. Phoenix-Hecht is a research company based in North Carolina's Research Triangle Park.

Electronic commerce, Internet services and a variety of PC-based options are among the many cash management services available at First Union. First Union offers a full range of collection, disbursement, information reporting and electronic commerce services designed to improve day-to-day efficiency of company treasury operations and maximize company return on cash assets.

Charlotte-based First Union Corporation is the nation's sixth-largest bank with assets of $157 billion as of Dec. 31, 1997. First Union serves more than 12 million retail and commercial customers and has offices throughout the East Coast from Florida to Connecticut.

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