Fitch Upgrades 8 Classes of First Union, Series 1999-C4

Business Wire, June 16, 2006

CHICAGO -- Fitch upgrades and removes from Rating Watch Positive four classes of First Union National Bank Commercial Mortgage Trust's (First Union) commercial mortgage pass-through certificates, series 1999-C4, as follows:

--$42.1 million class C to 'AAA' from 'AA ';

--$13.3 million class D to 'AAA' from 'AA-';

--$28.8 million class E to 'AAA' from 'A-';

--$13.3 million class F to 'AA ' from 'BBB'.

Fitch upgrades the following classes:

--$33.2 million class G to 'BBB ' from 'BB ';

--$11.1 million class H to 'BBB-' from 'BB';

--$2.2 million class J to 'BB ' from 'BB-';

--$6.6 million class K to 'BB' from 'B '.

In addition, Fitch affirms the following classes:

--$27.5 million class A-1 at 'AAA';

--$447.2 million class A-2 at 'AAA';

--Interest-only class IO at 'AAA';

--$46.5 million class B at 'AAA';

--$8.9 million class L at 'B';

--$8.9 million class M at 'B-'.

Fitch does not rate the $14.3 million class N certificates.

The rating upgrades are due to defeasance and paydown since Fitch's last ratings action. Of the loans remaining in the pool, twenty three (18.7%) have defeased since issuance, including three of the top ten loans (7.5%). As of the June 2006 distribution date, the pool has paid down 20.5% to $703.9 million from $885.7 million at issuance.

There are currently two assets (1.9%) in special servicing: one real estate owned (REO) property (1.4%) and one loan that is current (0.4%). The REO property is under contract for sale and is expected to close in July 2006. The loan that is current is secured by an industrial property in San Jose, CA. The property's sole tenant has had difficulty paying rent and the loan is due for its June payment. The non-rated class N is sufficient to absorb the expected losses on these assets.

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