PNC Bank Completes Acquisition of First Data Investor Services Group; Positions PFPC as a Premier Investment Services Provider

Dec 02, 1999, 00:00 ET from PNC Bank Corp.

    PITTSBURGH, Dec. 2 /PRNewswire/ -- PNC Bank Corp. (NYSE:   PNC) today
 announced it has completed the acquisition of First Data Investor Services
 Group (ISG), one of the nation's leading providers of services to mutual funds
 and retirement plans.  ISG will be integrated with PFPC, PNC's global fund
 services subsidiary.
     The addition of ISG makes PFPC the nation's largest full-service mutual
 fund transfer agent, while strengthening PFPC's position as the second largest
 full-service provider of mutual fund accounting services.  The acquisition
 also adds key related businesses, including retirement plan servicing and
 distribution services, to PFPC's expanding operations.  The combined
 organization provides fund accounting services for $346 billion of global fund
 assets and transfer agency services for 33 million shareholder accounts.  PFPC
 provides a full-service solution to more than 5,000 retirement plans with more
 than 700,000 participants and technology solutions to an additional 15,000
 retirement plans with more than two million participants.
     The acquisition is expected to increase the relative revenue contribution
 of PNC's fee-based businesses to approximately 60 percent in 2000 on a pro
 forma basis.  The transaction -- valued at $1.1 billion -- will be accounted
 for as a purchase and is expected to be less than 1 percent dilutive to GAAP
 earnings per share in the first year and accretive thereafter.  On a cash
 basis, the transaction is expected to be substantially accretive to earnings
 per share immediately.
     "By combining the strengths of these two organizations, PFPC will become a
 clear best-of-class service provider in an extremely attractive industry,"
 said Thomas H. O'Brien, chairman and chief executive officer of PNC Bank Corp.
 "This acquisition reflects PNC's unrelenting focus on creating a superior
 value proposition for customers in each of our businesses."
     "The addition of ISG represents a significant competitive advantage for
 PFPC to continue to build on a 25 year history of leadership and innovation in
 this industry," said J. Richard Carnall, chairman and chief executive officer
 of PFPC.  "Very significantly, this solidifies PFPC's position as a technology
 leader, and, through our 5,000 dedicated employees, allows PFPC to bring a
 virtually unparalleled array of services to our customers."
     PFPC is one of the world's leading providers of technology-driven services
 including fund accounting, administration, distribution services, transfer
 agency, shareholder services, custody, securities lending, retirement plan
 services, integrated banking transaction services, hedge fund services,
 offshore fund services and subaccounting services.  PFPC International Ltd.,
 based in Dublin, Ireland, provides services and technological solutions to the
 international funds community.
     PNC Bank Corp. is one of the largest diversified financial services
 organizations in the United States.  Its major businesses include PNC Regional
 Bank, PNC Institutional Bank, PNC Advisors, PNC Mortgage, PNC Secured Finance,
 PFPC and BlackRock, Inc.
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act with respect to the
 anticipated effect of the acquisition of ISG.  Forward-looking statements are
 typically identified by words such as "believe" or "expect", or future or
 conditional verbs such as "will" or similar expressions.  These forward-
 looking statements are subject to numerous assumptions, risks and
 uncertainties, all of which change over time.  PNC Bank assumes no duty to
 update forward-looking statements.  The following factors, among others, could
 cause actual results to differ materially from PNC's expectations: extent of
 customer retention and generation; ability to timely and fully realize
 contemplated cost savings and revenues; ability to attract and retain
 management; factors related to Year 2000 remediation efforts and the Year 2000
 compliance of other parties; technological changes; changes in economic
 conditions, interest rates, and financial and capital markets; competition;
 and changes in legislation or regulatory requirements.  Our SEC reports,
 accessible on our website, identify additional factors that can affect
 forward-looking statements.
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