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/C O R R E C T I O N -- NORWEST CORPORATION/

 In MN008, Norwest, First United Agree, moved yesterday, the contact line should read, "Tom C. Nichols, 806-763-5993 or Robert S. Strickland, 612-667-7919." The original transmission had the numbers reversed. The corrected release follows:
 NORWEST CORPORATION, FIRST UNITED BANK GROUP, INC.
 AGREE TO ACQUISITION OF FIRST UNITED BY NORWEST
 MINNEAPOLIS/ALBUQUERQUE, N.M., July 27 /PRNewswire/ -- Norwest Corporation (NYSE: NOB) and First United Bank Group, Inc. (NASDAQ: BNKS) said today they have signed a definitive agreement for Norwest to acquire First United Bank Group, Inc.
 First United was formed on March 25, 1993 when United New Mexico Financial Corporation merged with Lubbock-based Ford Bank Group. If pending acquisitions totalling $400 million in assets are completed as expected in third quarter of 1993 in Midland and Lubbock, Texas, First United will have total assets of $3.8 billion. It has 1,900 employees and, in addition to its commercial banks, provides trust services to its banking customers in New Mexico and west and central Texas.
 The consummation of the transaction, which was approved by the boards of directors of both companies, is subject to approval by First United's common and certain preferred stockholders and certain federal and state regulatory agencies and the satisfaction of certain other conditions.
 Under the agreement, each share of First United's common stock will be exchanged for 1.100 shares of Norwest common stock, each share of First United's Series A convertible preferred stock will be exchanged for 2.200 shares of Norwest common stock and, subject to the approval of the holders of 2/3 of the shares of First United's Series C convertible preferred stock, such shares of Series C preferred stock will be exchanged for 6.039 shares of Norwest's common stock. The shares of First United Series B floating rate cumulative preferred stock are expected to be redeemed prior to the consummation of the transaction.
 Based on recent Norwest stock prices, holders of First United's common and preferred stock will receive Norwest common stock with a value of approximately $495 million. The transaction is structured to be a tax-free exchange for First United's stockholders and accounted for as a pooling of interests. The transaction is expected to close in the first quarter of 1994. In addition, First United has granted to Norwest an option exercisable, in whole or part, only upon the occurance of certain circumstances, to purchase authorized but unissued shares of First United common stock equal to 19.99 percent of First United's currently outstanding common stock at a price of $25 per share.
 Gerald J. Ford, First United's chairman and chief executive officer, has, among other things, agreed to vote the First United common stock owned by him in favor of the acquisition. Ford beneficially owns approximately 15 percent of First United's currently outstanding shares of common stock. Following the acquisition, Ford will be elected to Norwest's Board of Directors.
 "First United's outstanding sales and service culture, highly trained employees and its strong commitment to its communities will fit perfectly with the community banking philosophy of Norwest and our emphasis on local marketplace decision-making," said Ken Murray, Norwest's executive vice president for Western Community Banking.
 "We're eager to provide consumers, farmers, ranchers, professionals, small businesses and middle market companies throughout New Mexico and west and central Texas with our broad array of products and services and the convenience of a diversified, nationwide financial services company and to build on First United's outstanding community involvement," said Murray.
 "We believe the merger of First United with Norwest provides the shareholders of First United with stock ownership in one of America's most exceptional companies," said First United's Ford. "We are also pleased that Norwest is committed to the community banking philosophy to which First United has been dedicated."
 Including pending acquisitions, First United has 60 locations in 30 communities in New Mexico with total assets of $1.8 billion and 19 locations in 10 communities in west and central Texas with total assets of $2.0 billion.
 First United's banks rank first or second in share of deposits in nine of its 10 west and central Texas markets, including First in Lubbock, and it is New Mexico's second largest bank in assets, ranking first or second in share of deposits in 21 of its 30 New Mexico markets.
 Norwest Corporation is a $47.8 billion organization providing banking, insurance, investments and other financial services through 2,116 locations in all 50 states, all 10 Canadian provinces and internationally. In addition to its banking operations in neighboring Colorado and Arizona, Norwest has had a presence in New Mexico and Texas for a number of years. In New Mexico, it has 17 locations of Norwest Financial, its consumer finance subsidiary, and five locations of Norwest Mortgage. It also has 92 financial service locations in Texas: Norwest Financial, 48; Norwest Mortgage, 42 and Norwest Insurance, 2.
 -0- 7/28/93
 /CONTACT: Larry Haeg, 612-667-7043; Larry Willard, 505-765-5138; Tom C. Nichols, 806-763-5993, or Robert S. Strickland, 612-667-7919, all of Norwest Corporation/First United Bank Group, Inc./
 /PRNewswire -- July 28/


KH -- MN011 -- 6829 07/28/93 15:00 EDT
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Publication:PR Newswire
Date:Jul 28, 1993
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