Wachovia Directors Under Fire for Risk Management Failures

Third Bank Board to Face Election Challenge in 2008

WASHINGTON, Jan. 22 /PRNewswire/ -- Amid global market turmoil caused by the
failure of US banks to manage risks related to the bursting housing bubble,
the CtW Investment Group today called on Wachovia Corporation's (NYSE: WB)
Board of Directors' Risk Committee to describe what they did to protect
shareholders from excessive exposure to mortgage-related risk over the past
two years.

"Wachovia's failure to manage risk destroyed one third of the firm's value
last year, and shareholders have lost 19% more so far this year. Today's
announcement makes it clear that the bad news isn't over," said William
Patterson, Executive Director of the CtW Investment Group, following
Wachovia's announcement of fourth quarter write downs of $1.7 billion and a
provision for credit losses of $1.5 billion. "This Board signed off on
management's decision to substantially increase exposure to mortgage risk in
2006. This proxy season, shareholders will demand accountability, starting
with the individual directors most responsible."

In letters sent today, CtW asked directors Dona Davis Young, Donald M. James,
Van L. Richey, and William H. Goodwin - all members of the Risk Committee
responsible for comprehensive risk oversight at Wachovia - to explain in
detail what they did to understand the company's exposure to mortgage-related
risk and how they satisfied themselves that management was properly
controlling such exposure.

All four directors will stand for election this year, the first election
following Wachovia's decision in April 2007 to move to annual elections for
the entire Board. If the members of the Risk Committee cannot provide a
convincing account of their oversight activities over the past two years, the
CtW Investment Group will recommend that shareholders withhold support from
Young, James, Richey, and Goodwin.

"Wachovia's Board failed shareholders repeatedly," said Patterson. "Wachovia
increased mortgage lending at the peak of the housing bubble. It accelerated
investments in mortgage backed securities in late 2006 and early 2007. And it
acquired a mortgage lender that exclusively issues option ARMs in some of the
most overheated real estate markets in the country. The warning signs were
there. Where were the directors?"

Last week, the CtW Investment Group called on five Citigroup directors and
four Merrill Lynch directors to explain what they did to protect their
company's shareholders from excessive mortgage-related risk over the past two
years.

The CtW Investment Group works with pension funds sponsored by unions
affiliated with Change to Win, a coalition of unions representing nearly 6
million members, to enhance long-term shareholder value through active
ownership. These funds, together with public pension funds in which CtW union
members participate, have about $1.4 trillion in assets and are substantial
long-term Wachovia shareholders.

** Note: For additional information, please contact CtW Investment Group
Research Director Richard Clayton at 202-721-6038. CtW's letters to the four
Wachovia directors are available at www.ctwinvestmentgroup.com. **

SOURCE Change to Win

Peter Gee of Change to Win, +1-212-471-1318