Monday,        Media Contact: Sandy Deem, 704/374-2710
June 8, 1998   Investor Contact: Alice Lehman, 704/374-4139


FIRST UNION MANAGEMENT TO RECOMMEND
DIVIDEND INCREASE TO CORPORATE BOARD


CHARLOTTE - First Union Corporation (NYSE:FTU) announced today that, consistent
with its previously announced financial performance guidelines, First Union
managemement intends to recommend to its board of directors that a third quarter
dividend increase on First Union common stock be approved at the next regularly
scheduled meeting of the board on June 16, 1998.

First Union announced new financial performance guidelines last year to lead the
company to the year 2000, including a goal to increase the dividend payout ratio
to a range of 40-45 percent. The current quarterly dividend is 37 cents.

First Union Corporation (NYSE:FTU) is the nation's sixth largest bank holding
company and a leading provider of financial services to more than 16 million
retail and corporate customers. Following its merger with CoreStates Financial
Corp, First Union has $220 billion in assets and stockholders' equity of $16
billion.

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