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DEFINITIVE AGREEMENT SIGNED FOR ACQUISITION OF LINCOLN FINANCIAL CORPORATION BY NORWEST CORPORATION

 DEFINITIVE AGREEMENT SIGNED FOR ACQUISITION
 OF LINCOLN FINANCIAL CORPORATION BY NORWEST CORPORATION
 MINNEAPOLIS, Aug. 20 /PRNewswire/ -- Norwest Corporation (NYSE: NOB) and Lincoln Financial Corporation, a multi-bank holding company headquartered in Fort Wayne, Ind., have signed a definitive agreement for the acquisition of Lincoln Financial by Norwest.
 In the acquisition, Norwest will issue .588 shares of Norwest common stock in exchange for each share of Lincoln Financial common stock. The exchange will be tax-free for Lincoln Financial shareholders and accounted for by Norwest as a pooling of interests. Based on Norwest's stock price in recent weeks, the purchase price represents 1.15 of Lincoln Financial's book value at June 30, 1992. In addition, Lincoln Financial has granted to Norwest an option, exercisable under certain circumstances, to purchase authorized but unissued shares of its common stock equal to 19.9 percent of Lincoln Financial shares currently outstanding.
 The acquisition has been approved by the boards of both companies and requires the approval of regulatory agencies and Lincoln Financial shareholders. The acquisition is expected to close in the first quarter of 1993 and to add to Norwest's earnings per share in the first full year of operation.
 At June 30, 1992, Lincoln Financial had assets of $2.25 billion, shareholders' equity of $144.4 million, approximately 1,300 employees and 64 banking locations in northern and central Indiana, southern Michigan and northwestern Ohio.
 Norwest has 26 financial operating offices in Indiana including seven community banking locations in South Bend, Granger and New Carlisle; four mortgage banking locations operated by its subsidiary, Norwest Mortgage; and 14 consumer finance offices operated by its consumer finance subsidiary, Norwest Financial.
 "This transaction is the culmination of a review of our strategic direction over several months by Lincoln's board and management," said Douglas E. Ebert, president and chief executive officer of Lincoln Financial. "An affiliation with Norwest Corporation is an exciting prospect and we believe that our shareholders, customers and employees will benefit significantly from this merger. It will give Lincoln Financial's customers access to a broader array of banking, insurance, investment and other financial products.
 "Norwest is one of the nation's best financial services companies, has a diversified earnings base and is known for its commitment to its communities and to local bank decision-making," Ebert said.
 "The combination of Lincoln Financial with Norwest will bring together two organizations that share a commitment to outstanding customer service and to their communities," said Lloyd P. Johnson, chairman and chief executive officer of Norwest. "The acquisition of Lincoln will expand Norwest's presence in Indiana and is consistent with our strategy of expanding in markets with cultures similar to those elsewhere in Norwestland. Lincoln Financial and Norwest both rank number one or number two in most of the markets they serve."
 "Norwest will bring to Lincoln Financial's customers resources comparable to the largest financial service companies in the world but we operate like local banks in giving our bankers authority to make lending, pricing and personnel decisions. They know their markets best, and we respect that," Johnson said.
 Norwest is a $40.6 billion company providing banking, insurance, investments and other financial services through 1,725 offices in 49 states and internationally.
 -0- 8/20/92
 /CONTACT: (Media) Patrice Vick, 612-667-0148, or (Investor) Michelle Nordstrom, 612-667-9799, both of Norwest; or Craig H. Berry, Jr. of Lincoln Financial, 219-461-6350/
 (NOB) CO: Norwest Corporation; Lincoln Financial Corporation ST: Minnesota; Indiana IN: FIN SU: TNM


AL -- MN003 -- 1583 08/20/92 08:47 EDT
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Publication:PR Newswire
Date:Aug 20, 1992
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