First Citizens to Issue $100 Million in Trust-Preferred Securities

August 27, 2001

RALEIGH, N.C.— First Citizens BancShares Inc. (Nasdaq: FCNCA) today announced that it has filed a registration statement with the Securities and Exchange Commission (SEC) related to the public offering of 4,000,000 trust-preferred securities to raise $100 million. Keefe, Bruyette & Woods Inc., A.G. Edwards & Sons Inc., First Union Securities Inc. and Legg Mason Wood Walker will underwrite the sale.

First Citizens BancShares will make the offering through its consolidated subsidiary, FCB/NC Capital Trust II.

First Citizens BancShares will strengthen its well-capitalized position and support future growth by investing a portion of the anticipated proceeds into its two banking subsidiaries, First Citizens Bank and Atlantic States Bank. The balance of the proceeds will be used for general corporate purposes.

As of June 30, 2001, First Citizens BancShares had total assets of $11.29 billion. Raleigh-based First Citizens Bank has 359 branches in North Carolina, Virginia and West Virginia. Atlantic States Bank, with corporate offices in Alpharetta and Fort Myers, has 44 branches in Georgia and Florida.

The registration statement has not yet been declared effective with the SEC. The trust-preferred securities may not be sold nor may offers to buy be accepted prior to the time the SEC declares the registration statement to be effective.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the trust-preferred securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.

The news release may contain forward-looking statements. A discussion of factors that could cause First Citizens' actual results to differ materially from those expressed in such forward-looking statements is included in First Citizens' filings with the SEC.

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