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SunTrust Discloses Minimal WorldCom Exposure

Jul 23, 2002

SunTrust Banks, Inc. today disclosed what it termed minimal credit exposure to WorldCom and affiliated companies. Specifically SunTrust said its exposure is limited to $6 million in unfunded letters of credit to two WorldCom subsidiaries, which is fully secured by deposits at SunTrust.

Erroneous media reports this morning significantly exaggerated SunTrust's exposure by incorrectly including in SunTrust's exposure the value of $1.2 billion in bonds originally issued by Intermedia Communications, Inc., a company acquired by WorldCom in 2001. SunTrust serves in a purely trustee capacity for this bond issue. SunTrust neither underwrote nor invested in these bonds and has no related credit exposure. As indentured trustee, SunTrust serves in administrative and communications capacity representing the interests of bondholders.

SunTrust Banks, Inc., headquartered in Atlanta, Georgia, is one of the nation's largest commercial banking organizations. As of June 30, 2002, SunTrust had total assets of $108.0 billion and total deposits of $71.7 billion. The company operates through an extensive distribution network in Alabama, Florida, Georgia, Maryland, Tennessee, Virginia and the District of Columbia and also serves customers in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the company provides credit cards, mortgage banking, insurance, brokerage and capital markets services. SunTrust's Internet address is .


SOURCE: SunTrust Banks, Inc.

CONTACT: Barry Koling of SunTrust Banks, Inc., +1-404-230-5268