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Contact: Bernadette Hearne
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Contact: Gordon Rodgers
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May 26, 1998
First Union Introduces CAP Account Asset Management Tool Throughout Former CoreStates System

PHILADELPHIA - First Union's innovative CAP family of asset management accounts is now available to former CoreStates customers in the northeastern United States.

Pioneered in 1985, CAP is a cornerstone of First Union's commitment to offering customers a full range of financial products to meet their needs at every stage of life. CAP combines everyday banking and investment activities in one account and allows customers to keep their cash invested until it is needed.

"First Union's family of CAP accounts offers the widest range of asset management account options available anywhere," said Monica Powell, the executive in charge of CAP accounts. "CAP is a wonderful way for people to see their complete financial picture at a glance, because you can manage your IRAs, stocks, bonds, annuities, mutual funds and cash in one account. Whether you're saving to buy your first home, investing for college or retirement or just trying to grow your assets, CAP is a powerful tool that evolves as your needs and goals evolve."

The account has been popular in the Northeast, where customers have opened more than 65,000 in just over two years. Corporatewide, more than $29 billion in assets are managed through more than 326,000 CAP accounts, and the number of accounts and assets under management has been growing at a rate of more than 30 percent annually.

CAP is the first new product introduced to CoreStates customers since the merger of First Union and CoreStates Financial was consummated April 28. "CAP is the product where traditional banking services converge with modern investment services," said Sue Perrotty, head of the General Banking Group for Pennsylvania and Delaware. "It's the essence of the kind of product capabilities available from a full-service financial services company, which makes it the perfect way to begin introducing former CoreStates customers to the full range of services that we can now offer. First Union customers in this region have embraced CAP, and we expect CoreStates customers to be enthusiastic."

Customers may choose among:

The flagship CAP Account, which requires a minimum balance of $15,000 in any combination of cash, stocks, mutual funds, bonds, annuities and First Union self-directed IRAs. The annual fee for CAP is $80, and benefits include unlimited check writing, automatic investment of cash in a variety of overnight options, access to thousands of load and no-load mutual funds, stocks and bonds, advice from a Personal Investment Counselor provided by First Union Brokerage Services Inc., a 5 percent discount on stock trade commissions, ATM usage, telephone and PC banking access and online bill paying with no First Union fees, automated expense category tracking, and a no-annual-fee Visa Gold card and CheckCard.
The CAP1 Account, which requires a minimum balance of $5,000 or $2,500 with a systematic investment plan of as little as $50 per month. The annual fee is $50, or $40 for customers with direct deposit. CAP1, which includes many of the features of CAP, is designed to help newer investors enjoy the benefits of an asset management account.
CAP1 for Kids, which has the same features as CAP1 but waives the annual fee until a child turns 18. CAP1 for Kids is an attractive way for parents or grandparents to save for the future of a child or grandchild.
CAP1 for College Students, which is a CAP1 account that waives the first year's fee. The college student product is an excellent way for young adults to become knowledgeable and responsible investors at an early age.
CAP for Business, a product for small businesses and organizations that have a low volume of transactions. The minimum account balance is $20,000, and the annual fee is $100. Benefits include a variety of overnight investment options, 100 free checks per month, 250 free deposited items per month, 5 percent stock trade discount, access to thousands of stocks, bonds and mutual funds, expense coding and check safekeeping.

Customers may open a CAP Account by visiting any First Union or CoreStates financial center or by calling CAP Client Services toll-free at 1-888-213-1352.

First Union is a leading provider of financial services to more than 16 million retail and corporate clients throughout the East Coast and the nation. It is the sixth-largest bank holding company in the United States with pro forma assets of $220 billion at March 31, 1998, reflecting the merger with CoreStates.

-- END -- *Brokerage services are provided by First Union Brokerage Services Inc., a registered broker-dealer, member NASD and separate non-bank affiliate of First Union Corporation. Stocks, bonds, mutual funds and annuities are not endorsed or guaranteed by First Union or any bank, are not deposits or obligations of First Union or any bank, are not insured or otherwise protected by the FDIC or any other government agency, and involve risks, including the possible loss of principal.