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NATIONSBANK ANNOUNCES COMPLETION OF $200 MILLION EQUITY INVESTMENT IN MNC FINANCIAL

 NATIONSBANK ANNOUNCES COMPLETION OF $200 MILLION
 EQUITY INVESTMENT IN MNC FINANCIAL
 CHARLOTTE, N.C., Sept. 28 /PRNewswire/ -- NationsBank Corporation (NYSE: NB) said today it has completed its previously announced $200 million equity investment in MNC Financial, Inc. (NYSE: MNC) of Baltimore, Md. The NationsBank investment represents approximately 16 percent of MNC outstanding common stock.
 The closing of the NationsBank investment follows receipt of various regulatory assurances, including that NationsBank will not be held responsible for the safety and soundness of MNC unless the merger option is exercised and a merger is consummated.
 As part of this transaction, originally announced in July, NationsBank and MNC have entered into a merger agreement providing NationsBank with the option to acquire MNC. The option is exercisable through September 30, 1997 and is based upon a book value formula price for MNC. Consummation of the merger agreement will be subject to regulatory approvals and the approval of MNC stockholders.
 "Obviously, we are pleased to be able to complete our investment," said Hugh McColl, NationsBank chief executive officer. "This will allow us to participate with other MNC shareholders in the continuing enhancement of the company's business. The investment will enable MNC to continue to focus on its customers, meet the credit needs of its communities and generate new business.
 "We expect MNC to continue its recovery and look forward to the day when we exercise our option to acquire the company. We believe in the long-term strength of the MNC franchise and of the Maryland, Virginia and District of Columbia marketplace. The opportunity to expand our presence there, which this option provides, is of enormous strategic value to NationsBank."
 In return for its $200 million investment, NationsBank received non-voting preferred stock in MNC at a price equal to $11.75 per share of MNC common stock.
 NationsBank is the fourth largest banking company in the U.S., with total assets of $111 billion and more than 1,800 banking offices in nine states and the District of Columbia. As part of this network, NationsBank has 149 banking offices throughout the current MNC market.
 -0- 9/28/92
 /CONTACT: (News Media) John Cleghorn, 704-386-8571, or (Securities Analysts) Russell J. Page, 704-386-5667, both of NationsBank Corporation/
 (NB MNC) CO: NationsBank Corporation; MNC Financial Corporation ST: North Carolina, Maryland IN: FIN SU: TNM


CM -- CH007 -- 4074 09/28/92 16:31 EDT
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Publication:PR Newswire
Date:Sep 28, 1992
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