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Wells Fargo and Wachovia Merger Completed

On January 1, 2009, financial services company Wells Fargo announced that it completed its merger with Wachovia Corporation. This merger solidified the continent's most extensive distribution system for financial services, including 11,000 stores and 12,260 ATMs. Former Wachovia members now have access to all these services, as well as phone and online services. Additionally, Wells Fargo now provides greater access to their services, as the integration of Wachovia has provided the Company with a Community Banking presence in Alabama, Connecticut, Delaware, Florida, Georgia, Kansas, Maryland, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and Washington D.C.

Wells Fargo President and CEO, John Stumpf, spoke about the benefits of the absorption of Wachovia:

“This merger creates what we believe will be a very compelling value proposition for our team members, customers, communities and shareholders with significant potential for even more market share growth. Our team members can benefit from even more professional development opportunities across a much broader geography. Our customers can benefit from greater convenience and a better value for entrusting us with more of their business. Our communities can benefit because we want to be a leading contributor of financial, human and social capital in every community in which we do business. Our shareholders can benefit because of the exciting growth opportunities created by this merger. We’re being very thoughtful and deliberate in our three-year merger integration. Just as we did with the very successful Norwest-Wells Fargo merger integration a decade ago, we’ll take the time to do it right for our customers, always putting their interests first by seeking to satisfy all their financial needs and helping them succeed financially.”

As a result of the takeover, Wells Fargo now runs community banks in 39 states and the District of Columbia and is lead in deposit market share in 18 of those states. Wells Fargo is now the top ranked financial services company in the U.S. in community banking presence (with 6,650 stores), small business lending, commercial real estate brokerage, and bank-owned insurance brokerage. Furthermore, Wells Fargo is now #2 in U.S. banking deposits, home mortgage originations and servicing, and retail brokerage (based on number of financial advisors, as well as debit card use. The Company is also one of the country's top 40 private employers, providing around 276,000 jobs, and ranks among the top ten in the nation for corporate donations.

Regarding the transition for former Wachovia customers, executive vice president Pat Callahan, the head of Wells Fargo's merger transition, remarked on the steps taken to ensure a smooth transition.“The key to a successful integration will be our ability to provide outstanding customer service throughout the integration,” said Callahan. “So we’re going to take our time and do this right. Wells Fargo and Wachovia customers should continue banking as they do today — using the same bank accounts, payment coupons, online sign-on, credit cards, ATM cards and check cards, checks and banking stores. We’re committed to keeping customers informed of all significant changes before they happen.”

Wells Fargo obtained all outstanding shares of Wachovia common stock in a stock-for-stock transaction. At closing, shares of each outstanding series of Wachovia preferred stock were converted into shares (or fractional shares) of a corresponding series of Wells Fargo preferred stock, mostly with the same rights and preferences. Wachovia shareholders received 0.1991 shares of Wells Fargo common stock in exchange for each share of Wachovia common stock they owned.

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