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FIRST UNION TO SELL FINANCE SUBSIDIARY

 FIRST UNION TO SELL FINANCE SUBSIDIARY
 CHARLOTTE, N.C., Dec. 2 /PRNewswire/ -- First Union


Corporation (NYSE: FTU FTUpr) today announced that Capitol Finance Group, Inc., a subsidiary of First Union Corporation, engaged in consumer finance lending, has entered into an agreement to sell substantially all of its assets and liabilities to the Great Western Consumer Finance Group.
 Capitol Finance Group, with $178 million in assets, was formerly a subsidiary of First Railroad & Banking Company of Georgia when First Union acquired First Railroad in 1986.
 Capitol currently operates 54 consumer finance offices in North and South Carolina, Georgia, Tennessee and Virginia. The company offers primarily four products -- dealer contract financing, personal loans, home equity loans and insurance premium financing.
 The transaction is expected to close prior to the end of this year and result in an after-tax gain to First Union of approximately $9 million, or 8 cents per share.
 "The consumer finance industry is going through a consolidation period, with larger companies able to achieve greater efficiencies," said Doug Crisp, senior vice president for First Union's Consumer Credit Division.
 "After receiving several unsolicited offers, we decided to sell Capitol because we didn't see First Union becoming a major player in the consumer finance industry. We found in Great Western Consumer Finance Group a company that shares our commitment of making the transition a smooth one for customers, and for ensuring that a high level of service will continue for them."
 First Union Corporation operates banking offices in North Carolina, South Carolina, Georgia, Florida and Tennessee, and nonbanking offices in 36 states.
 -0- 12/2/91
 /CONTACT: Media Contact - Jeep Bryant, 704-374-2957 or Donna Stockton 704-374-6999, both of First Union Corporation/
 (FTU FTUpr) CO: First Union Corporation; Capitol Finance Group, Inc. ST: North Carolina IN: FIN SU: TNM


DF -- CH005 -- 8500 12/02/91 16:45 EST
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Publication:PR Newswire
Date:Dec 2, 1991
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