CANCELABLE FLOATING TO FIXED INTEREST RATE SWAP - SLIDE 1

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A Cancelable Interest Rate Swap allows customers to fix the net interest expense of their floating rate loans at a fixed rate below that which is currently available for a standard interest rate swap. To achieve a more favorable rate, the customer grants Wachovia the right to cancel the swap on or after some specific date or dates. Should Wachovia choose to cancel the remaining term of the swap, the customer would no longer have the interest rate protection of the swap. Replacing the swap at that time would be subject to then prevailing market conditions and credit approval.

BENEFITS

Known Protection Below Current Market Rates
At least until the cancellation date and possibly for the entire term of the swap, the customer can achieve a fixed rate lower than that available on a standard interest rate swap.

No Fee
There is no up-front cost to enter into the swap. There is also no cancelation fee payable if the remaining term of the swap is canceled by Wachovia.

Flexibility
This product is extremely flexible in that the cancellation feature can be limited to a specific date or designed to operate over the entire swap. The more uncertainty the customer is willing to accept, the more Wachovia can lower the fixed rate.