Exhibit 99

Wednesday                                                         Media Contact:
December 20, 2000                                    Ginny Mackin   704-383-3715
                                                     Mary Eshet     704-383-7777

                                                               Investor Contact:
                                                     Alice Lehman   704-374-4139


FIRST UNION REDUCES ANNUAL DIVIDEND
Action Will Generate Approximately $5 Billion In Additional Capital Over 5 Years

CHARLOTTE, N.C. - First Union (NYSE:FTU) today announced its intention to reduce
its annual dividend to $0.96 per share, a 50 percent reduction from the current
annual dividend of $1.92 per share. The new dividend rate will be reflected in
the quarterly dividend payable March 15, 2001.

"Our primary goal is to increase shareholder value, and a strong balance sheet
is the foundation for achieving this objective," said Ken Thompson, First Union
president and chief executive officer. "This is a prudent step that will enable
First Union to significantly improve our capital ratios over time, and it brings
our dividend payout ratio back in line with industry averages."

In addition, First Union estimated this action should generate approximately $5
billion in additional capital over the next five years. "This will give us more
flexibility to deploy our capital in the best interests of shareholders in a
tax-efficient manner," Thompson said. "Additionally, a stronger capital position
will reduce our funding costs over time, which will make us more competitive in
the marketplace. Ultimately, we believe, this action will create more value for
our shareholders."

Thompson also said that the dividend action does not reflect a change in First
Union's earnings or asset quality outlook for 2001.

"Our objective is to be one of the nation's best capitalized financial
institutions," Thompson said.

First Union (NYSE:FTU), with $247 billion in assets and stockholders' equity of
$15 billion at September 30, 2000, is a leading provider of financial services
to 15 million retail and corporate customers throughout the East Coast and the
nation. The company operates full-service banking offices in 11 East Coast
states and Washington, D.C., and full-service brokerage offices in 46 states.
Online banking products and services can be accessed through www.firstunion.com.

This news release contains various forward-looking statements. A discussion of
various factors that could cause First Union's actual results to differ
materially from those expressed in such forward-looking statements is included
in First Union's 2000 filings with the SEC, including the Form 8-K dated
December 20, 2000.

Teleconference: First Union CEO and President Ken Thompson will discuss the
dividend reduction with investors and analysts in a teleconference at 9 a.m. EST
on Wednesday, December 20. The telephone number to participate in the
teleconference is 888-997-8505 for U.S. callers (or 712-257-2288 for
international callers) on December 20. The access code for the teleconference is
33345.

A continuous telephone replay will be available beginning at 11 a.m. on
Wednesday, December 20, and continue through 5 p.m. on Wednesday, December 27.
The replay telephone number is 402-220-9097.