PRESS RELEASES

S&P raised its ratings on HomEq as a residential subprime loan servicer and residential alternative loan servicer to Strong from Above Average. Fitch upgraded HomEq residential primary servicer ratings for Alt-A and subprime products to ‘RPS1’ from ‘RPS2-’ and its special servicer rating to ‘RSS1’ from ‘RSS2-’. The ratings were announced last week and paved the way for the company to attract third-party contracts and grow its subservicing portfolio.

“We are extremely excited that S&P and Fitch see such positive things in our organization,” said Art Lyon, President of HomEq. “These ratings give us tremendous leverage among our competitors to attract the most valuable third-party servicing clients.”

“Changes in the HomEq platform over the previous 18 months have been significant as reflected in Fitch’s ratings,” said Rick Lee, EVP and Head of Business Development for HomEq. “These ratings are a result of HomEq’s unique combination of technology, servicing expertise and people.”

“Over the past three years, HomEq has reshaped its organization, procedures, processes, controls and technology and is emerging as an innovative leader in subprime, Alt-A and special servicing,” said Diane Pendley, Fitch.

“In recognition of its seasoned management team, excellent automation, risk-averse methodologies, and the continued backing of its strong parent company, HomEq is well situated to continue to be a highly effective servicer on a wide variety of assets for third-party clients,” said Richard Koch, S&P.

HomEq, with more than 1,100 employees in Sacramento, Calif., and Boone and Raleigh, N.C., is becoming a leader in the sub-servicing business by leveraging its experience in originating and servicing home equity and home improvement loans. The portfolio currently includes 385,000 loans, which equates to approximately $18 billion in outstanding principal balances.

Wachovia Corporation (NYSE:WB), created through the September 1, 2001, merger of First Union and Wachovia, had assets of $325 billion and stockholder's equity of $30 billion at June 30, 2002. Wachovia is a leading provider of financial services to 20 million retail, brokerage and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices under the First Union and Wachovia names in 11 East Coast states and Washington, D.C., and offers full-service brokerage with offices in 49 states and global services through more than 30 international offices. Online banking and brokerage products and services are available through wachovia.com and firstunion.com.