First Citizens Bank Prepares for Year 2000

July 22, 1999

RALEIGH, N.C. — First Citizens Bank announced today that it is ready for the Year 2000 date change.

The bank has spent three years identifying, fixing and testing computer code that could have malfunctioned because of its use of a two-digit year. Programmers had fixed and tested nearly all of the bank's mission critical applications in 1998. The first half of this year was spent fixing the code in the remaining mission critical applications and completing testing. The bank will complete testing of its non-mission critical applications in August. Further tests will be conducted throughout 1999.

"We've put a lot of time and resources into ensuring that First Citizens Bank will maintain customer service through the Year 2000 date change," said James B. Hyler Jr., First Citizens Bank's vice chairman. "Our applications are ready, and our associates are dedicated to making the first days of the new year business as usual for our bank."

Products and services that are of most concern to the majority of bank customers were made a top priority and addressed early in the process, Hyler said. Testing is complete on programs that support savings and retirement accounts, checking accounts, direct deposits, credit cards, ATM cards, loan products and trust and investment services.

First Citizens will continue its integration testing program into August. Integration testing involves evaluating as a single unit the bank's individual computer applications and the data they transmit and receive. The bank has been implementing its integration testing program, which checks the system's performance on critical dates, since February.

Even with the successful testing of the bank's computer applications, First Citizens is implementing contingency plans for interruptions in normal operations.

"We are extremely confident in the Year 2000 work we've done, but we owe it to our customers and our company to be prepared for any event," Hyler said. "Given the external factors that affect our business or any business, we feel much more assured that we will be able to continue to serve customers with this plan in place. We expect that we won't have to use it."

Hyler also noted that the banking industry in general, which has worked closely with federal regulators on Year 2000 readiness, is regarded by many experts as the best prepared segment of American business.

First Citizens partnered with Keane Inc., a $1 billion Boston-based, information systems consulting firm, to implement its Year 2000 readiness strategy. First Citizens used Keane's Year 2000 readiness methodology, Resolve 2000, to prepare for the millennium. Keane's Resolve 2000 methodology has been certified by the Information Technology Association of America.

For more information on First Citizens Bank's Year 2000 program, customers can call toll free 1-877-Y2K-4-FCB (1-877-925-4322), visit www.firstcitizens.com.

First Citizens operates more than 366 branches in more than 211 cities and towns in North Carolina, Virginia and West Virginia. Headquartered in Raleigh, the bank has more than $9.7 billion in assets. First Citizens Bank is committed to providing superior financial services to individual customers and small to mid-sized businesses.

For more information, contact:
Barbara Thompson
(919) 716-2716
First Citizens Bank