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August 21, 2000 First Union Corporation Agrees to Purchase the Tribus Companies Prominent Insurance Brokerage Business Aligns with Company's Repositioning CHARLOTTE--Aug. 21, 2000--First Union Corporation (NYSE:FTU) announced today an agreement to purchase The Tribus Companies Inc., a full-service independent insurance brokerage and consulting firm based in Wayne, N.J. and serving New Jersey, New York and Pennsylvania. "The Tribus Companies is a perfect business extension for First Union, allowing us to offer complete insurance solutions to our customers from every distribution channel," said Donald McMullen, vice chairman of First Union Corp. and head of First Union's Capital Management Group. "You can't say you're a full-service financial services company unless you can protect the assets you helped to build. First Union can say it meets our customers' total financial needs." "First Union is now well positioned to create one of the top insurance brokerage firms in the country, offering numerous advantages to customers," McMullen added. "Tribus' existing clients will be able to access an entirely new range of high-value financial products and an even higher level of service." The new commercial and employee benefits insurance agency will be known as Tribus First Union Insurance Services. First Union Insurance Group's Mid-Atlantic Agency, formerly known as Taylor & Clark, will become part of the new organization. The Tribus (pronounced Trib'-You) Companies, with 1999 annual revenues totaling $24 million, offers insurance and benefits solutions and a wide range of services, including employee benefits, property and casualty insurance, 401(k) services, human resources/benefits software solutions and estate and business life insurance planning. Clients include individuals, small to mid-size employers and large corporations. According to McMullen, "This acquisition fosters a unique property/casualty and group benefits insurance distribution system that's consistent with First Union's values and objectives of enhancing shareholder value." Donald Tribus, who will serve as vice chairman and president of Tribus First Union, started Tribus in 1967. Tony Fenton, a First Union senior vice president and managing director, will assume the role of executive vice president and chief operating officer of Tribus First Union. Tribus' current CEO, John Petillo, Ph.D., will serve as the company's new northeast regional president. Tribus employs about 200 people and has three New Jersey offices in Wayne, Jamesburg, and Shrewsbury. Terms of the transaction were not disclosed. "Don Tribus has earned a reputation for developing innovative solutions for the diverse needs of his clients. His success is due to his core philosophy of placing the clients' needs first and achieving the highest level of customer service," said McMullen. "I'm thrilled he is joining First Union's Capital Management Group." In his new role, Tribus will report directly to McMullen. Along with the Capital Management Group, First Union's other core businesses - Capital Markets and the General Bank - are expected to benefit from the acquisition. "Tribus' customers directly align with First Union's corporate customer profile, creating tremendous cross-selling opportunities," McMullen added. "We said we would consider acquisitions if we're able to acquire industry scale, show strong growth potential and meet clients' needs better with the highest level of customer service. Tribus fits our focus to a tee." Donald Tribus concurred: "What I found at First Union's Capital Management Group is a mirror image of my company's core mission, which is to provide clients with the highest level of service and the greatest value for the dollar in the areas of insurance, benefits and financial services. The Tribus Companies accomplishes that by developing innovative solutions to clients' diverse needs, as well as by fostering a positive working environment that inspires and rewards teamwork and creativity while making a positive impact on the communities that we serve." The Tribus Companies is among New Jersey's largest and most prominent insurance brokerage and consulting firms. It is a past winner of Business News New Jersey's award as one of the state's Top 20 privately-held companies. Capital Management Group (CMG) includes First Union's asset and wealth management services, providing a full array of unique, integrated financial products and services to individual and institutional clients. CMG's operations include the sixth largest broker-dealer, largest bank annuity provider, second largest bank IRA provider, fourth largest discretionary personal trust asset manager, and top twenty mutual fund provider. First Union Corporation (NYSE:FTU) is a leading provider of financial services to 15 million retail and corporate customers with $258 billion in assets and stockholders' equity of $14 billion at June 30, 2000. For more company information, visit their web sites at www.firstunion.com and www.tribus.com. |
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