First Union North introduces CAP Account; CAP offers customers convenience by combining banking and investment activity into one account.

NEWARK/PHILADELPHIA--(BUSINESS WIRE)--Jan. 16, 1996--First Union customers in the Northeast now have the ability to consolidate their traditional banking activities and investments into one account -- and benefit from many features associated with that account.

Today, First Union introduced CAP Accounts to new customers in Connecticut, Maryland, New Jersey, New York and Pennsylvania. First Union acquired branches and operations in those states through its recent merger with First Fidelity Bancorporation.

"The introduction of CAP Accounts in the Northeast is a prime example of First Union's commitment to provide customers in the region with increased investment products and services," said Tony Terracciano, president of First Union Corp. and chief executive officer of First Union North. "CAP Accounts save customers time and money and allow them to manage their money in the bank and market all in one place."

CAP is an asset management account that is designed for individuals and businesses that want a simple and convenient way to manage their finances. Among its features is a monthly consolidated statement that details CAP Account money market and brokerage activity, allowing customers to see their complete financial picture at a glance.

First Union introduced CAP Accounts to customers in the Southeast in 1985. Growth has been strong -- assets in CAP Accounts have increased from $498 million in 1990 to more than $11 billion today.

Individuals can open a CAP Account with a $15,000 minimum balance that can be split among cash, stock, bonds, treasuries, mutual funds and other securities. The annual charge is $80 at account opening, or $7 can be paid each month. Customers can open CAP Accounts at any branch. Signs at First Fidelity branches will change to First Union this summer.

"First Union is building the industry's premier capital management organization," said Don McMullen, First Union executive vice president and head of the Capital Management Group. "Offering high quality investment products and services like CAP to our customers in the Northeast is a vital part of First Union's commitment to providing a full array of financial products."

"CAP is an added bonus for our customers," said Donald C. Parcells, president and head of the General Banking Group of First Union's northern region. "CAP allows customers to consolidate their banking and investment relationships under one umbrella, and it offers customers many features outside the traditional banking relationship."

For instance, CAP offers an expense tracking system that allows customers to track more than 30 separate expenses by simply entering a single letter or number on each check they write. The expenses will be summarized on each monthly statement, allowing customers to track expenditures and maintain good tax records.

Other features of CAP include:

o Automatic investment of cash daily in customer's choice of

several investment options

o Unlimited check-writing privileges

o Brokerage account with First Union Brokerage Services Inc.

offering discount commissions and automatic settlement of trades

o No annual fees on CheckCards, ATM cards or Prime Option Visa

Gold cards

o First Union Brokerage Investment Counselors to help with

customer's investment needs

o No fees for wallet or duplicate checks, stop payments, money

orders or cashier's checks 

o $500,000 travel accident insurance at no charge

A commercial CAP Account also is available with similar features. It primarily is designed for small businesses and professional organizations. The minimum opening balance for commercial customers is $20,000.

Charlotte-based First Union Corp. is a leading provider of financial products and services to customers along the East Coast. First Union Corp. completed its merger with First Fidelity Bancorporation on Jan. 1, 1996, creating the nation's sixth-largest banking company based on assets of approximately $131.9 billion. First Union has branches in 12 Eastern states from Connecticut to Florida, as well as Washington, D.C.

Securities offered through First Union Brokerage Services Inc., a subsidiary of First Union National Bank of North Carolina, are not deposits or obligations of First Union and are not endorsed or guaranteed by First Union. They are not insured or otherwise protected by the Federal Deposit Insurance Corporation, or any other government agency, and involve investment risk, including possible loss of principal.

CONTACT: Paul Levine (Newark)

201/565-2949

or

Mark Folk (Charlotte)

704/374-2292