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PNC BANK TO PURCHASE SEARS MORTGAGE GROUP

 CHICAGO, May 11 /PRNewswire/ -- Sears, Roebuck and Co. (NYSE: S) and PNC Bank Corp. today announced a definitive agreement for PNC Bank to acquire the Sears Mortgage Banking Group for $328 million in cash plus normal closing adjustments.
 The Sears Mortgage Banking Group, part of Coldwell Banker Residential Services, consists of Sears Mortgage Corporation, Sears Mortgage Securities Corporation and Sears Savings Bank. The transaction is subject to regulatory approvals. Sears and PNC Bank said they anticipate the transaction will be completed by the end of the year.
 Sears Chairman and Chief Executive Officer Edward A. Brennan said, "The successful completion of this transaction is another important step in Sears' previously announced repositioning which will continue to enhance shareholder value. Coldwell Banker has grown dramatically in the last ten years under Sears to become widely respected and recognized in the mortgage business and it has a solid foundation for future growth." Brennan said that efforts to sell the Coldwell Banker residential brokerage business are proceeding on schedule.
 Sears Mortgage originates residential mortgage loans from 120 locations in 33 states. In 1992, the company generated $11.8 billion in mortgage loans (seventh in the nation) and at year end the company's servicing portfolio totaled $27.2 billion (15th in the nation). Sears Savings Bank, FSB, is a federally chartered savings bank with total assets of approximately $6.7 billion at year end 1992, largely residential mortgage loans. Sears Mortgage Securities Corporation is one of the leading conduits for the securitization of private residential mortgage portfolios in the United States, with a master servicing portfolio at year end of approximately $8.7 billion.
 Thomas H. O'Brien, chairman and chief executive officer of PNC Bank, said, "The acquisition of this integrated group positions PNC Bank as a major force in the mortgage banking industry, a business that we have targeted for profitable growth. The transactions should be immediately accretive to PNC Bank shareholders."
 The acquired mortgage operations will continue to be headed by Walter ("Terry") Klein Jr., chairman and president of the Sears Mortgage Banking Group, and the company will continue to operate from Vernon Hills, Ill.
 -0- 5/11/93
 /CONTACT: Gerald E. Buldak of Sears, Roebuck and Co., 312-875-8371; Sondra Byrnes of Sears Mortgage Group, 708-549-2935; or Jonathan Williams of PNC Bank Corp., 412-762-4550/
 (S)


CO: Sears, Roebuck and Co.; PNC Bank Corp. ST: Illinois IN: REA SU: TNM

GK -- NY021 -- 6901 05/11/93 09:24 EDT
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Publication:PR Newswire
Date:May 11, 1993
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