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Contact: Donna Smart
(704) 374-6999

October 12, 1999
First Union Children's Cap Account Goes Hi-tech
Interactive Web Site Teaches Kids About Financial Responsibility

CHARLOTTE, NC - First Union's CAP First for Kids Account has come of age - the Internet age. In September the nation's sixth largest bank added a kids' section to its web site to address the needs of a rapidly growing market. At www.firstunion.com/kids, children can play interactive games to learn the basics of investing, handling finances and balancing a budget.

"Generation X already has begun saving for retirement," said Don McMullen, vice chairman of First Union Corporation and head of the Capital Management Group. "Now high school students are learning about portfolio management and diversification, and now some of these kids are even managing their own mutual fund portfolios."

The CAP First for Kids web site includes:

A sweepstakes entry form to be eligible to win $5,000 or one of four Compaq. laptop computers (contest ends 11/2).
A "cost quiz" to determine present and future costs of movie tickets, braces for kids' teeth, and a four-year private college education.
Three games to teach children about finances: "Be an Inventor," "Be A Detective" And "Be an Accountant."

The only product of its kind in the U.S., CAP First for Kids is designed to teach children about saving and investing responsibly and to encourage parents to spend time teaching their children about finances.

CAP First for Kids is a simple custodian account managed by an adult for the benefit of a child. The account includes a variety of financial services, including many of the features of the original CAP Account, and is free of annual fees until the child turns 18. Some of the CAP First for Kids' features include:

A five percent discount on stock trade commissions1;
Investment services and advice from a First Union Brokerage Services Personal Investment Counselor;
Dividend reinvestment;
The convenience of establishing a Systematic Investment Plan 2;
Daily sweep of uninvested cash into an investment option with a competitive interest rate;
Free Online banking access to account information and;
Deposit and check writing privileges.

First Union (NYSE:FTU) is a leading provider of financial services to more than 16 million customers throughout the East Coast and the nation. At June 30, 1999, First Union had assets of $230 billion and total stockholders' equity of $16 billion. The company operates full-service banking offices in Connecticut, Delaware, Florida, Georgia, Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and Washington, D.C. and brokerage offices in 41 states nationwide.

Firstunion.com provides individuals and businesses with comprehensive information on financial products, services and planning tools to meet a broad spectrum of needs. The web site also contains company information for customers, shareholders and site visitors. First Union Online offers a wide range of customer-focused online banking services that cater to more than one million online banking and online brokerage customers as of October 7, 1999. Online banking is a key, integrated delivery channel that First Union offers customers, complementing its ATM, First Union Direct, and extensive financial center and brokerage network that allows customers to bank when, where and how they choose.

1 Brokerage services are offered through FIRST UNION BROKERAGE SERVICES, INC., a registered broker-dealer, member NASD, and separate non-bank affiliate of First Union Corporation. The 5% discount does not apply to mutual funds, bonds, fixed income securities or online brokerage trades and is subject to minimum brokerage commissions.

2 When considering a Systematic Investment Plan, you should note that programs of periodic investment do not assure a profit or protect against a loss in a declining market. You should also consider your ability to continue investing during declining market periods.