EXTON, Pa., Dec. 20, 2004 -- Automated Financial Systems, Inc. (AFS-Exton) announced the successful migration of global lending operations at Charlotte, N.C.-based Wachovia Corporation (NYSE:WB) to the newest release of the AFS Level III(TM) Loan Accounting System. Release 8.3 prepares Wachovia for the demands of a more stringent risk management and corporate governance environment, including compliance with the Basel II Capital Accord and Sarbanes-Oxley. Currently, 70% of the top 25 U.S. banks are users of the AFS system.

"Wachovia intends to remain at the very pinnacle of risk awareness and regulatory compliance," says Robert Sontag, executive vice president of Wholesale Operations Technology at Wachovia. "Wachovia is taking a pro-active response to the upcoming regulatory changes that will affect financial institutions worldwide. Not only will this upgrade support our compliance with the Advanced Management Approach (AMA) of Basel II, but we will also benefit from an ability to better manage risk, monitor total customer exposure, and improve customer responsiveness."

Release 8.3 positions financial institutions for the total integration of loan processing, encompassing consumer, business banking, and commercial and capital markets lines of business on a single system. In addition, the new release represents a first response to regulatory changes that AFS expects to become increasingly more rapid and demonstrates the company's commitment to enhance system capabilities at a pace consistent with market and compliance dynamics.

Said John Shain, president of AFS, "Together, we accomplished an incredibly smooth conversion to an upgrade that provides an adaptable platform that complies with significant upcoming changes to the financial global market. Release 8.3 uses automation to reduce handling costs, minimize costly error resolution, and provide data integrity throughout the solution. Wachovia now has the ability to support more diverse and complex lending products on an automated basis and we look forward to our role in supporting Wachovia's continued growth."

About Wachovia

Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with retail operations from Connecticut to Florida and retail brokerage operations nationwide. Wachovia had assets of $436.7 billion, market capitalization of $61.4 billion and stockholders' equity of $33.9 billion at September 30, 2004. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve 12 million client relationships (including households and businesses), primarily in 11 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, serves clients in 49 states. Global services are offered through 33 international offices. Online banking and brokerage products and services also are available through Wachovia.com.

About AFS

AFS is the dominant provider of commercial lending software and services to U.S. financial institutions, combining the systems, execution expertise, and management information to mitigate risk, reduce costs, and increase revenue. The firm is headquartered in Exton, PA; its European subsidiary, Automated Financial Systems GmbH is located in Vienna, Austria. For further information, visit AFS' website at www.afsvision.com.

Contacts

Patricia McFeely, 484-875-1376 
Automated Financial Systems, Inc.
email: pmcfeely@afsvision.com
or
 
Robert Sontag, 704-374-7134
Wachovia Corporation
email: Robert.sontag@wachovia.com