EXHIBIT 99.2

CONTACTS:

MEDIA:
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Brian E. Goerke
(412) 762-4550
corporate.communications@pnc.com

INVESTORS:
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William H. Callihan
(412) 762-8257
investor.relations@pnc.com

 PNCICLC, A PNC NON-BANK SUBSIDIARY, SIGNS AGREEMENT WITH DEPARTMENT OF JUSTICE
            TO DEFER PROSECUTION RELATING TO 2001 PAGIC TRANSACTIONS

      AGREEMENT BRINGS CLOSURE TO GOVERNMENTAL INVESTIGATIONS AND INQUIRIES
   APPLICABLE TO PNC AND AFFILIATES STEMMING FROM THE 2001 PAGIC TRANSACTIONS

         PITTSBURGH, June 2, 2003 -- The PNC Financial Services Group, Inc.
(NYSE: PNC) today announced that one of its non-bank subsidiaries, PNC ICLC
Corp., has entered into a deferred prosecution agreement with the U.S.
Department of Justice relating to PNCICLC's actions in connection with the PAGIC
transactions that were entered into in 2001. As previously disclosed, the PAGIC
transactions were the subject of a July 2002 consent order entered into between
PNC and the United States Securities and Exchange Commission and the subject of
a separate written agreement that was entered into between PNC and the Federal
Reserve. The agreement brings closure to the main governmental investigations
and inquiries applicable to PNC and its affiliates stemming from the 2001
transactions. A copy of the agreement has been filed by PNC on a Current Report
on Form 8-K and is available on the Company's website at www.pnc.com and on the
SEC's website at www.sec.gov.

         Under the terms of the agreement entered into between PNCICLC and the
Department of Justice, PNCICLC has agreed to establish a $90 million restitution
fund to satisfy shareholder claims stemming from the PAGIC transactions. The
fund will be administered by former Federal Judge Arlin Adams. PNCICLC has also
agreed to pay a $25 million monetary penalty to the government.

         The agreement was entered into by the Department of Justice in light of
PNCICLC's exceptional remedial steps to date, and its willingness to acknowledge
responsibility for its actions in connection with the PAGIC transactions through
the undertakings set forth in the agreement and through its continued
cooperation with the government regarding these matters. The agreement has also
been designed to avoid the imposition of adverse collateral consequences
relating to PNC's important banking, brokerage, asset management, fiduciary and
processing businesses, which businesses had no improper involvement in any of
the conduct associated with PNCICLC and the PAGIC transactions.

         Under the agreement between PNCICLC and the Department of Justice, the
department will file a complaint against the subsidiary, but will seek dismissal
of that complaint after 12 months if PNCICLC complies with the agreement.





         "PNC regrets its involvement in the PAGIC transactions," stated James
E. Rohr, chairman and chief executive officer of PNC. "As described in the PNC
Statement of Principles issued in August 2002, the PNC Board and PNC management
are fully committed to maintaining the highest standards of conduct throughout
the PNC organization, and PNC will not tolerate close-to-the-line opinions in
accounting matters or otherwise. The PNC Board and management team have fully
cooperated with all governmental investigations with respect to PAGIC and we
have pledged our full continuing cooperation with the government in connection
with its ongoing investigation of others."

         "The agreement between PNCICLC and the Department of Justice brings an
important closure to PNC's involvement in the PAGIC transactions," added George
Davidson, a PNC director and chairman of the PNC Special Regulatory Affairs and
Oversight Committee. "We have made substantial progress in implementing improved
governance and risk management practices at PNC in the aftermath of PAGIC and in
changing the corporate culture. Our regulators have acknowledged this progress
and our Board remains united in its support of Mr. Rohr and his management team
and the exceptional efforts they have made in this regard."

         PNC will take a pre-tax charge to earnings of $120 million in the
second quarter of 2003 reflecting the agreement with the Department of Justice
and related legal expenses.

         The PNC Financial Services Group, Inc., headquartered in Pittsburgh, is
one of the nation's largest financial services organizations, providing regional
community banking; wholesale banking, including corporate banking, real estate
finance and asset-based lending; wealth management; asset management; and global
fund services.

FORWARD-LOOKING STATEMENTS

This news release contains, and other statements that the Corporation may make
may contain, forward-looking statements with respect to the Corporation's
outlook or expectations for earnings, revenues, expenses, capital levels, asset
quality or other future financial or business performance, strategies or
expectations, or the impact of legal, regulatory or supervisory matters on the
Corporation's business operations or performance. Forward-looking statements are
typically identified by words or phrases such as "believe," "feel," "expect,"
"anticipate," "intend," "outlook," "estimate," "forecast," "project,"
"position," "target," "assume," "achievable," "potential," "strategy," "goal,"
"objective," "plan," "aspiration," "outcome," "continue," "remain," "maintain,"
"seek," "strive," "trend," and variations of such words and similar expressions,
or future or conditional verbs such as "will," "would," "should," "could,"
"might," "can," "may," or similar expressions. The Corporation cautions that
forward-looking statements are subject to numerous assumptions, risks and
uncertainties, which change over time. Forward-looking statements speak only as
of the date they are made, and the Corporation assumes no duty and does not
undertake to update forward-looking statements. Actual results could differ
materially from those anticipated in forward-looking statements and future
results could differ materially from historical performance.

The factors discussed elsewhere in this news release and the following factors,
among others, could cause actual results to differ materially from those
anticipated in forward-looking statements or from historical performance: (1)
changes in political, economic or industry conditions, the interest rate






environment or financial and capital markets, which if adverse could result in:
a deterioration in credit quality, increased credit losses, and increased
funding of unfunded loan commitments and letters of credit; an adverse effect on
the allowances for credit losses and unfunded loan commitments and letters of
credit; a reduction in demand for credit or fee-based products and services; a
reduction in net interest income, value of assets under management and assets
serviced, value of private equity investments and of other debt and equity
investments, value of loans held for sale or value of other on-balance sheet and
off-balance sheet assets; or changes in the availability and terms of funding
necessary to meet PNC's liquidity needs; (2) relative and absolute investment
performance of assets under management; (3) the introduction, withdrawal,
success and timing of business initiatives and strategies, decisions regarding
further reductions in balance sheet leverage, the timing and pricing of any
sales of loans held for sale, and PNC's inability to realize cost savings or
revenue enhancements, or to implement integration plans relating to or resulting
from mergers, acquisitions, restructurings and divestitures; (4) customer
borrowing, repayment, investment and deposit practices and their acceptance of
PNC's products and services; (5) the impact of increased competition; (6) how
PNC chooses to redeploy available capital, including the extent and timing of
any share repurchases and investments in PNC businesses; (7) the inability to
manage risks inherent in PNC's business; (8) the unfavorable resolution of legal
proceedings or government inquiries; the impact of increased litigation risk
from recent regulatory and other governmental developments; and the impact of
reputational risk created by recent regulatory and other governmental
developments on such matters as business generation and retention, the ability
to attract and retain management, liquidity and funding, (9) the denial of
insurance coverage for claims made by PNC; (10) an increase in the number of
customer or counterparty delinquencies, bankruptcies or defaults that could
result in, among other things, increased credit and asset quality risk, a higher
provision for credit losses and reduced profitability; (11) the impact, extent
and timing of technological changes, the adequacy of intellectual property
protection and costs associated with obtaining rights in intellectual property
claimed by others; (12) actions of the Federal Reserve Board; (13) the impact of
legislative and regulatory reforms and changes in accounting policies and
principles; (14) the impact of the regulatory examination process, the
Corporation's failure to satisfy the requirements of written agreements with
regulatory and other governmental agencies, and regulators' future use of
supervisory and enforcement tools; and (15) terrorist activities and
international hostilities, including the situations surrounding Iraq and North
Korea, which may adversely affect the general economy, financial and capital
markets, specific industries, and the Corporation.

The Corporation's SEC reports, accessible on the SEC's website at www.sec.gov
and on PNC's website at www.pnc.com, contain additional information about the
foregoing factors and identify additional factors that can affect the results
anticipated in forward-looking statements.