PRESS RELEASES

The award recognizes First Union's investment of more than $29.5 million in qualifying community development and financing initiatives in fiscal year 2000.

The Bank Enterprise Award (BEA) program provides incentives to financial services companies to increase their direct investment in specialized, community-based banks known as Community Development Financial Institutions (CDFIs). It is designed to increase institutional lending, investments and financial services in distressed communities served by the financial services companies.

"We are honored to be recognized in this manner for our vision and results," said Jane Henderson, senior vice president and director of community development for First Union. "To receive a BEA award of this magnitude reflects our commitment and hard work to build partnerships with nonprofit organizations to strengthen the communities we serve."

These partnerships generally leverage additional sources of capital and promote revitalization efforts for communities in need. Among First Union's qualifying community development efforts:

Connecticut

• Provided a $200,000 equity investment to the Neighborhood Rebuilder Program encouraging investment in abandoned urban neighborhoods.

• Initiated a $3 million equity investment providing flexible financing products to National Community Capital of Philadelphia.
  
• Committed a $2.5 million loan with the proceeds used by Borinquen Federal Credit Union of Philadelphia to develop a loan program to meet the needs of the Latino community.
  
• Funded a $100,000 certificate of deposit to provide capital to the Berean Federal Savings Bank of Philadelphia County, which provides residential mortgages to low and moderate-income individuals.

• Established a $2 million equity investment with the Federation of Appalachian Housing Enterprise, Inc. providing equity financing for multi-family real estate projects developed by non-profit community development corporations in the Appalachian Counties and Southwest Virginia.
  
• Initiated a $250,000 equity investment supporting the Richmond Community Development Loan Funds micro-loan pool in Richmond.

• Committed $2.5 million to increase the current commitment to $45 million to capitalize The Enterprise Foundation's loan fund in Baltimore.

• Initiated a $200,000 loan fund to support the Unitarian Universalist Affordable Housing Corporation's loan pool to support affordable housing in the area.
  
• Funded a $100,000 certificate of deposit allowing City First Bank of D.C., N.A. to offer financial services to residents, businesses and organizations in the area.
  
• Closed a $700,000 equity investment to be used for the Scattered Site Housing Construction Loan Fund (for non-profit housing developers) in the city.
  
• Funded a $150,000 loan to the Washington Area Community Investment Fund encouraging use of monies for predevelopment loan funds.

• Provided a $2.5 million equity investment providing subordinate debt, equity financing and technical assistance to companies in recycling, environmental and industrial sectors to create jobs in Durham County.
  
• Established a $100,000 certificate of deposit to provide capital to help the Victory-Masonic Mutual Credit Union continue its lending activities to residents, businesses and organizations located in or serving the distressed communities of Forsyth and Guilford Counties.
  
• Provided a $100,000 certificate of deposit allowing the Self-Help Credit Union to serve residents, businesses and organizations in Durham County.
  
• Initiated a $10 million term loan used by Self-Help Ventures Fund of Durham County to support the $100 million loan pool to benefit Eastern North Carolina flood victims.

• Funded a $1 million equity investment supporting the Downpayment Assistance Program and the Development Loan Program sponsored by the Nashville Housing Fund.

• Initiated a $750,000 equity investment with the proceeds supporting the Florida Community Loan Fund's Affordable Housing production, economic development projects and micro-enterprise loan programs in Broward County.
  
• Provided a $250,000 equity investment with the proceeds supporting Community Equity Investment Inc.'s Gap Loan Program in Escambia County, Northwest Florida and Southern Alabama. The program provides loans of $50,000 to small businesses with a maximum loan term that can be extended to ten years.
  
• Developed a $250,000 equity investment to support the Business Loan Fund of Palm Beach, Inc.'s mini-micro, micro and small business loans, plus business start-up and community projects, which benefit low- and moderate-income Palm Beach County neighborhoods.
  
• Provided a $200,000 equity investment supporting Lee County Employment and Economic Development Corporation's revolving micro-loan fund, which provides direct loans, loan guaranties and individual development accounts to Ft. Myers residents.

In addition, First Union provided a $2.5 million equity investment with the proceeds to capitalize the Enterprise Foundation's Housing Loan Fund.

First Union will use the CDFI award funds to support future investments in community development projects and to help offset some of the costs associated with making these low-interest community development loans. In this way, First Union can continue to support CDFIs and other organizations in the communities it serves.

First Union (NYSE:FTU), with $247 billion in assets and stockholders' equity of $15 billion at September 30, 2000, is a leading provider of financial services to 15 million retail and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices in 11 East Coast states and Washington, D.C., and full-service brokerage offices in 45 states and international offices worldwide. Online banking products and services can be accessed through www.firstunion.com.