Why Merge?
We want to improve customer service
and remain an economic anchor for the state

By Bud Baker and Ken Thompson

We believe First Union and Wachovia are a unique strategic fit. We’ve grown up together and have competed side-by-side. We have long admired each other’s strengths and – as we started talking – quickly recognized the potential of a First Union/Wachovia combination. We both realized the new Wachovia could be a strong and lasting anchor for North Carolina and an East Coast powerhouse positioned to serve our 19 million customers better than ever.

With our extensive merger experience, we have learned a lot about how to treat a customer as you bring together two companies. But even before we announced our merger of equals, customers already were a top priority for both companies. We are committed to keeping our priorities in order. Our banks touch customers in many ways, and the new Wachovia will offer customers more choice and greater convenience. They will be able to bank how, when and where they want: face-to-face in one of our 2,900 branches; online through the Internet; by phone with personal representatives available 24 hours a day, seven days a week; and through more than 5,100 ATMs.

Our goal is clear. We want to continue providing the excellent service our customers have come to know. We believe our commitment to the customer and our two companies’ early partnership will help make that happen. So far, our integration plans are going smoothly, and our process has been a collaborative, positive experience for everyone involved.

Here are some of our initiatives.

Listening to our customers. From day one, each of us has reached out to our customers – from the customer who relies on us for checking and savings needs to the multi-billion-dollar corporation that uses our capital markets services. We asked about their concerns. We listened to their ideas. And we took note of what is important to them in a merger process. 

Some customers have asked, “Will my main contact at the bank change?” We are reassuring them that even though some changes are inevitable, disruptions of service and relationships will not be an issue. We will each stay in close contact with our customers throughout this merger transition to seek their feedback and to make sure their service experience is seamless.

Emphasizing Business as Usual: The plain fact is that for most employees of Wachovia and First Union, it is “business as usual.” We each continue to proactively call and visit our customers to let them know we are still focused on meeting their financial needs. We are saying to customers, “We are here to do business. What can I do for you today?”

We will continue to conduct a variety of surveys to benchmark our current customer satisfaction levels. As the merger proceeds, we will consistently monitor those levels, so we can act immediately if issues arise.

Creating the best of both: In most bank mergers, the acquiring bank determines the best way to integrate the acquired bank’s culture into its own. Since this is a true merger of equals, we are approaching this from an entirely different perspective. So, we are creating a whole new culture that reflects the best of both companies. 

In other words, we are each asking employees and customers, “What do you treasure about where you work and bank, and what do we need to do to preserve those qualities?”

For instance, we plan to blend Wachovia’s stellar service model with First Union’s strong sales and distribution platform to bring the best to customers. Throughout this process, we have also been reassured by some important similarities of our two companies. For example, we both emphasize team-oriented, consensus decision-making and a relationship approach to customers.

Building a new company together. Perhaps the most important decision we have made is to adopt a three-year timetable to implement this merger. This pace allows us to take our time and do things right the first time. That means testing and re-testing our systems, looking at customer traffic patterns to identify convenient branch locations and communicating constantly with customers to update them every step of the way.

We are bringing two strong companies together to create a premier financial services organization that supports not only the best interests of our customers, but also our employees, shareholders and communities.

We will be the new Wachovia. We will be ready to serve you. We can’t wait to get started.

L.M. "Bud" Baker is chairman, president and CEO of Wachovia Corp.; Ken Thompson is chairman, president and CEO of First Union.

Note:  The following notice is included to meet certain legal requirements: In connection with the proposed transaction with Wachovia, First Union filed a registration statement on Form S-4 with the SEC containing a joint proxy statement/prospectus of First Union and Wachovia.  Stockholders are urged to read the definitive joint proxy statement/prospectus regarding the proposed transaction when it becomes available and any other relevant documents filed with the SEC because they will contain important information. You may obtain a free copy of these documents, without charge, at the SEC’s internet site (www.sec.gov).  Copies of these documents can also be obtained, without charge, by directing a request to First Union Corporation, Investor Relations, One First Union Center, 301 South College Street, Charlotte, NC 28288-0206, 704-374-6782, or to Wachovia Corporation, Investor Relations, 100 North Main Street, Winston-Salem, NC 27150, 888-492-6397.   Information regarding the participants in the proxy solicitation and a description of their direct and indirect interest, by security holdings or otherwise, is contained in the registration statement.  

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