FIRST COLONY CORPORATION
Corporate Communications
700 Main Street
P. O. Box 1280
Lynchburg, Virginia 24505


                                   Contact:  GE Capital Services
                                             Neal McGarity
                                             Office: 203-961-2290

                                             First Colony Corporation
                                             Frank G. Land
                                             Office:  804-948-5293


FOR IMMEDIATE RELEASE

GE CAPITAL AND FIRST COLONY CORPORATION ANNOUNCE
AGREEMENT ON THE ACQUISITION OF FIRST COLONY

     LYNCHBURG, VA., August 5, 1996 - General Electric Capital Corporation and
First Colony Corporation (NYSE:FCL) today announced the signing of a
definitive agreement for the sale of First Colony to GE Capital.  First
Colony's principal subsidiaries, First Colony Life Insurance Company and
American Mayflower Life Insurance Company of New York, will become
subsidiaries of GE Capital Assurance, a GE Capital company.

The cash purchase price will be $36.15 per share of First Colony Corporation
common stock for a total value to First Colony shareholders of approximately
$1.8 billion.  Following regulatory approval, the transaction is expected to
close by year-end and is expected to add increased earnings to GE Capital
during 1997.  The purchase of First Colony will add approximately $11 billion
of assets to GE Capital's insurance and savings business.

Patrick E. Welch, president and CEO of GE Capital Assurance and GE Capital's
Great Northern Annuity (GNA) subsidiary said, "The acquisition of First Colony
will enhance our corporate strategy to be the leader in providing solutions
for wealth accumulation, protection and transfer.  First Colony brings a long
record as a major provider of innovative and competitive life insurance,
retirement and structured settlement annuity products.  Their capacity to
develop and distribute those products will be a tremendous addition to GE
Capital's insurance and savings capabilities."

Bruce C. Gottwald, Jr., First Colony chairman and CEO, added, "We are very
pleased to announce the sale of First Colony to GE Capital.  GE Capital is a
global leader in the financial services area and will be a strong parent. 
This transaction successfully completes First Colony's evaluation of strategic
alternatives to maximize value to shareholders."  Gottwald and certain other
members of the Gottwald family have agreed to vote their shares in favor of
the transaction.

GE Capital Services, which has assets of over $185 billion, is a global,
diversified financial services company with 26 specialized businesses.  A
wholly-owned subsidiary of General Electric Company, GE Capital Services,
based in Stamford, CT, provides equipment management, mid-market and
specialized financing, specialty insurance and a variety of consumer services
such as car leasing, home mortgages and credit cards, to businesses and
individuals around the world.  GE is a diversified manufacturing, technology
and services company with operations worldwide.

First Colony Corporation is a Virginia-based holding company which owns First
Colony Life Insurance Company and its wholly-owned subsidiary, American
Mayflower Life Insurance Company of New York.  First Colony Life is a leading
provider of structured settlement and retirement annuities and individual life
insurance.