MCI AND FIRST UNION JOIN FORCES TO OFFER INTERNET ACCESS TO FIRST UNION CUSTOMERS; Netscape Software Brings Customers Closer to Home Banking and Shopping

Business Wire, August 29, 1995

CHARLOTTE, N.C.--(BUSINESS WIRE)--Aug. 29, 1995--In an unprecedented alliance to jump-start virtual banking activity on the Internet, MCI Communications Corporation and First Union Corporation are joining forces to offer a turn-key software and service package to provide First Union customers simple and convenient access to the Internet.

In an 18-month market test, the two companies will put the power of the Internet directly into the hands of First Union's retail and commercial customers by providing them personal computer software disks that connect customers directly into a custom-designed First Union Internet home page.

From there, customers will be able to access a wide variety of First Union banking applications, information and the bank's virtual shopping mall by simply pointing and clicking on individual icons.

Using Netscape Communications Corporation's most advanced, secure navigational tool--Netscape Navigator(TM)--which was customized for First Union by MCI, bank customers will be able to make secure transactions directly over the Internet with full confidence that their account and credit card numbers are safe from electronic eavesdroppers. The software package will also enable bank customers to easily and quickly browse the Internet's World Wide Web--the fastest growing portion of the Internet--using point and click technology.

"For many customers and businesses, the Internet remains a mystery looming somewhere out of reach," said Fred M. Winkler, First Union senior vice preside and head of Card Products. "First Union and MCI are solving that mystery by providing the software that makes virtual banking and Internet navigation simple and convenient."

Since the beginning of the year, First Union has created a virtual marketplace in cyberspace (http://www.firstunion.com) where customers can learn about the financial services company, apply for credit cards, shop for an array of goods and services, and access information about sporting events, the economy and other topics of interest. In the fourth quarter, First Union plans to roll out enhanced commercial and consumer banking applications on its home pages.

First Union plans to distribute its branded browser to customers through MCI 800 number. Other distribution channels may include First Union branches, direct mail and client relationship managers. The company expects distribution to begin in November when Netscape Navigator(TM) is introduced in the marketplace and when First Union begins offering its enhanced Internet product capabilities.

Interested parties can reserve their copy of the turn-key First Union Internet Access Package now by calling 1-800-WWW-FUNB.

The software package, valued at more than $75, will be given away free of charge through First Union. Usage fees for accessing the Internet will be billed as follows: MCI will bill customer credit cards with the $9.95 monthly subscription fee, which includes the first five hours of Internet access. Users will be charged $2.50 per hour for additional hours of access time.

MCI will provide First Union a "private labeled" Internet Netscape browser for distribution to its customer base. In addition, MCI will manage the network, fulfill and distribute customer orders and provide First Union's customers high-quality customer service 24 hours a day, seven days a week.

In an ongoing effort by both companies to add value to their home pages, MCI and First Union have also agreed to link their web sites on the Internet.

"MCI and First Union have taken a giant step to making the Internet as powerful a consumer banking tool in the `90's as the Automated Teller Machine became in the `80's," said Vinton G. Cerf, MCI senior vice president for data architecture, and the industry-recognized "Father Of the Internet."

"With cyberbanking, banking hours will be anytime from anyplace," Cerf said.

The Internet and MCI have had a long and rich history extending back to l987 when MCI signed a cooperative agreement to provide the National Science Foundation high-speed fiber optic lines for the government's supercomputer centers, linking dozens of universities and research centers.

"MCI brings extensive Internet experience, technological infrastructure, customer service capabilities and market power to help us take our plans for the Internet to the next level," said Winkler.

"First Union customers will receive the best browser available in the market and the security of one of the nation's most reliable telecommunication networks. We are pleased to be the first bank to partner with MCI on the Internet and we look forward to a mutually beneficial, long-term relationship.

First Union Corp., is the nation's ninth-largest bank holding company with more than $83 billion in assets and 1,300 branch offices in eight southeastern states. In June l995, First Union announced plans to merge with First Fidelity, a bank holding company with approximately $35 billion in assets. That merger is ending shareholder and regulatory approval and other customary conditions of closing.