Press Release: June 19, 2003

First Citizens Bank Selects HP to Support Automation Upgrade

HP Technology to Provide Branches with Adaptive Infrastructure to Increase Operational Efficiency
PALO ALTO, CALIF., AND RALEIGH, N.C., JUNE 19, 2003

First Citizens Bank, a subsidiary of First Citizens BancShares Inc. (Nasdaq:FCNCA), has named HP (NYSE:HPQ) as its partner for a technology automation upgrade for its 341 branches in North Carolina, Virginia and West Virginia. The upgrade also will be used at more than 40 offices for BancShares' other subsidiary, Atlantic States Bank, in Georgia and Florida, and Atlantic States' division, IronStone Bank, in Texas, Arizona and California.

The agreement calls for 4,000 Compaq Evo D510 Small Form Factor desktop PCs, 700 industry-standard HP ProLiant ML310 servers and an upgrade to the bank's printing network, including the installation of 1,200 HP Jetdirect connectivity cards. The technology upgrades, which are to be installed in phases over the next 12 months, will be deployed at First Citizens branches.

The HP ProLiant servers and Compaq Evo desktop PCs will support retail branch operations, including specialized customer service and administrative functions. The upgrade of the printing network will provide enhanced printing capabilities and response.

"This HP technology will help us increase our operational efficiency and deliver enhanced services to our customers," said Joe Cooper, executive vice president for technology and operations, First Citizens Bank.

The upgrade will allow First Citizens to consolidate and deliver information from multiple areas of the bank on a single system, providing increased customer service and a simplified branch-operating environment for customer service representatives. Benefits of the new technology include enhanced intranet capabilities and additional levels of information security.

The selection of HP as technology provider for First Citizens' upgrade is an extension of an eight-year relationship with HP.

"Over its more than 100 years in business, First Citizens Bank has built a reputation for providing customer service above and beyond the norm," said Mark Bubar, director of banking, HP Enterprise Systems Group. "We are proud that HP's scalable, flexible technology will contribute to maintaining that reputation for many more years."

HP was selected from among four finalists to supply the technology for the branch automation upgrade.

"We work hard to maximize our investment in IT infrastructure," said Cooper. "We are satisfied that we are accomplishing this with HP as our technology partner. Our confidence in HP and its technology was a key factor in our decision to install this equipment."

CompuCom, a Dallas-based provider of IT outsourcing, technology procurement and systems integration and an HP reseller, will provide fulfillment and installation of the equipment.

About First Citizens Bank

Founded in 1898, First Citizens operates 341 branches in 202 cities and towns in North Carolina, Virginia and West Virginia. Headquartered in Raleigh, N.C., the bank has $12.23 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 about First Citizens and its services, visit one of the bank's branches, call toll-free 1-888-FC DIRECT (1-888-323-4732) or visit the Web site at www.firstcitizens.com.

About HP

HP delivers vital technology for business and life. The company's solutions span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium business. For the last four quarters, HP revenue totaled $70.4 billion. More information about HP is available at http://www.hp.com.


This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the proposed contract may not be entered into on the terms currently contemplated or at all; that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to HP's quarterly report on Form 10-Q for the quarter ended January 31, 2003, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation to update these forward-looking statements.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at http://www.hp.com.