First Union Real Estate Investments Announces 56,700 Square Foot Lease.

CLEVELAND--(BUSINESS WIRE)--Feb. 22, 1999--First Union Real Estate Investments (NYSE:FUR) today announced that it signed a lease for 56,700 square feet of office space at Two Rivers Center in Clarksville, Tennessee.

Convergys Customer Management Group, Inc., a wholly owned subsidiary of Convergys Corporation has leased 56,700 square feet of former retail space. Convergys Corporation (former CBIS and MATRIXX Marketing) is the global leader in providing outsourced, integrated customer care and billing services. Convergys serves companies in a wide range of industries, including communications, technology, cable and broadband services, consumer products, financial services, utilities, healthcare, hospitality, and direct response. Headquartered in Cincinnati, Ohio, Convergys employs over 30,000 people at its more than 30 call centers, data centers, and other offices in the United States, Canada, and Europe. Convergys will employ approximately 1,000 people at the Two Rivers location.

The new Convergys lease is the first significant step in First Union's redevelopment of the center. Two Rivers Center is a former retail mall that First Union is converting into a mixed-use office/retail facility. This new lease will increase the property's occupancy to 77% and, upon occupancy, will increase annual net operating income by over $500,000. In light of the new tenancy, First Union will begin to convert the property's functional use from a retail complex to a suburban office complex. Future improvements that are appropriate to the property's new use may include new signage, exterior windows and renovated common areas.

Gregory J. Boyson, Senior Leasing Representative, summarized the redevelopment efforts by stating, "Our new tenant signals the rebirth of the center as a first class commercial project, one that will generate significant rental income once the re-leasing is completed. We are delighted to have Convergys join Two Rivers Center and look forward to continued implementation of our redevelopment plan."

Certain statements contained in this news release that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include, but are not limited to, changes in market activity, changes in local real estate conditions and markets, actions by competitors, interest rate movements and general economic conditions. Further information about these matters can be found in the information included in the Annual Report filed by the company with the Sec on Form 10K.

First Union Real Estate Equity and Mortgage Investments is a NYSE-listed, stapled-stock real estate investment trust (REIT) headquartered in Cleveland, Ohio.