Fitch Affirms PNC; Places United National Bancorp on Rating Watch Positive.

Business Editors

CHICAGO--(BUSINESS WIRE)--Aug. 21, 2003

Fitch Ratings has affirmed all ratings of PNC Financial Services Group (PNC) and its affiliates, after that company announced it has signed a definitive agreement to acquire United National Bancorp (UNBJ) of Bridgewater, New Jersey. At the same time, Fitch has placed the ratings of UNBJ on Rating Watch Positive. A complete list of ratings follows at the end of this release.

The acquisition will strengthen PNC's community banking presence in northern New Jersey. The target market includes some of the most affluent areas in the U.S., and should also provide opportunities for PNC's wealth management and brokerage businesses. Integration risk is modest, due to UNBJ's comparatively small size, and PNC's experience in integrating similar acquisitions. The transaction is subject to various regulatory approvals, and will likely close in early 2004.

Fitch's affirmation of PNC's ratings is based on recent improvements in that company's corporate governance and risk management systems, its stable earnings capacity and improving credit profile. Ratings also take into account the existence of regulatory enforcement actions against PNC, and steps management has taken to comply with those actions. Fitch expects capital at closing to be maintained at levels suitable for PNC's risk profile. Fitch also expects that UNBJ's ratings will be aligned with PNC's ratings when the transaction is consummated.

Ratings Affirmed, Rating Outlook Stable:

PNC Financial Services Group

-- Long-term Senior 'A';

-- Long-term Subordinated 'A-';

-- Preferred Stock 'A-'

-- Short-term 'F1';

-- Individual 'B/C';

-- Support '5'.

PNC Funding Corp.

-- Long-term Senior 'A';

-- Long-term Subordinated 'A-';

-- Preferred Stock 'A-'

-- Short-term 'F1';

-- Individual 'B/C'

-- Support '5'.

PNC Bank N.A.

-- Long-term deposits 'A+';

-- Long-term Senior 'A';

-- Long-term Subordinated 'A-';

-- Short-term Senior 'F1';

-- Short-term Deposits 'F1';

-- Individual 'B/C'

-- Support '4'.

PNC Bank Delaware

-- Long-term deposits 'A+';

-- Long-term Senior 'A';

-- Short-term Senior 'F1';

-- Short-term Deposits 'F1';

-- Individual 'B/C';

-- Support '4'.

PNC Financial Corp.

-- Long-term Subordinated 'A-'.

PNC Capital Trust A

PNC Capital Trust B

PNC Capital Trust C

PNC Institutional Capital Trust A

PNC Institutional Capital Trust B

-- Trust Preferred 'A-'.

Ratings Placed on Rating Watch Positive:

United National Bancorp

-- Long-term Senior 'BBB-';

-- Short-term Senior 'F3';

-- Individual 'C';

-- Support '5'.

UNB Capital Trust I

-- Trust Preferred 'BB+'.