CIT and First Union Announce Trade Factor Program to Serve Latin American and Caribbean Banks.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 30, 2000

CIT Commercial Services (NYSE: CIT) and First Union National Bank (NYSE: FTU) today announced an agreement to provide financing and factoring services to First Union correspondent banks in Latin America and the Caribbean.

The agreement will help increase liquidity into the Latin American and Caribbean banking systems by providing First Union and its correspondent banks with the credit protection of CIT. Terms of the agreement were not disclosed.

"The Trade Factor program opens a door of opportunities for CIT to increase our service to companies in the Latin American and Caribbean markets. It also enables us to leverage our experience in the U.S. market by providing factoring services to the correspondent banks and their customers exporting into the U.S.," said John F. Daly, President of CIT Commercial Services. "First Union's close ties with its correspondent banks coupled with our industry expertise makes for an ideal alliance."

Under the program, CIT will provide its credit guarantee to First Union's correspondent bank, assuming responsibility for the financial ability of its U.S. customers to pay. The first correspondent bank to sign on to this new program is Banco Financiera Hondurena S.A. (FICOHSA), which signed the agreement yesterday.

"The creation of Trade Factor took into consideration First Union's long standing commitment of forging lasting relationships with our correspondent banks," noted Fernando Melo, Vice President and Director of First Union's International division. "It is another example of our ability to be a leader in providing innovative solutions."

Factoring is an agreement between CIT and a company, in which CIT purchases accounts receivables and assumes responsibility for its customers' financial ability to pay. As a financial management tool, factoring can help companies of all sizes improve their cash flow, reduce operating costs, expand working capital financing, and improve management information. Factoring enables companies to focus their attention on their core business rather than collecting receivables.

CIT Commercial Services is the nation's largest provider of customized credit protection, accounts receivable management and lending services. It is a division of CIT Commercial Finance, which provides financing to companies in all stages of the business cycle.

CIT Commercial Finance is one of six operating units of The CIT Group, Inc. (NYSE:CIT; TSE: CIT.U). Founded in 1908 and with over $50 billion in total managed assets, CIT is one of the nation's largest commercial and consumer finance organizations. For more information, visit the company's Web site at www.cit.com.

First Union (NYSE:FTU), with $253 billion in assets at December 31, 1999, is a leading provider of financial services to 16 million retail and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices in 12 East Coast states and the District of Columbia and full-service brokerage offices in 41 states through its subsidiaries, First Union Securities, Inc. ("FUSI"), and First Union Brokerage Services, Inc., members of the NASD, NYSE (FUSI) and SIPC. Online banking products and services can be accessed through www.firstunion.com.