First Horizon Home Loans Acquires Real Estate Financial Services.

Business Editors

IRVING, Texas--(BUSINESS WIRE)--June 4, 2002

First Horizon Home Loans today announced its purchase of the operations of Real Estate Financial Services (REFS), a mortgage lending company based in Alpharetta, Ga., and licensed in Georgia, Florida and the Carolinas.

The transaction will provide new and existing home loan customers in these markets with additional products and services, such as equity-based financing, installment loans, credit cards, personal banking services, financial planning and other First Horizon consumer products.

"The expertise, customer focus and leadership skills of the REFS team will be a tremendous asset in the Southeastern market," said Jerry Baker, president and CEO of First Horizon Home Loans. "They share First Horizon's commitment to building valuable and lasting relationships with their customers."

Founded in 1995 by Greg Janicki and Debbie Janicki, REFS has grown from four associates to more than 100 today. The company currently serves approximately 3,000 customers each year from offices in Alpharetta, Ga., Dunwoody, Ga., Spartanburg, S.C., Hilton Head, S.C., and Cornelius (Lake Norman), N.C.

"Being part of the First Horizon family enables us to offer much more to our home loan customers," said Greg Janicki, president of Real Estate Financial Services. "Now that our financial product inventory has grown, we can build stronger relationships with customers by providing a wider range of financial products and services, which will help simplify our customers' daily and long-term budgeting tasks."

The Janickis will continue to provide senior management leadership to the Southern Atlantic region as regional president and senior vice president.

About First Horizon Home Loan Corporation

Headquartered in Irving, Tex., First Horizon Home Loans has established itself as a national leader in the mortgage banking industry. The company ranks among the nation's largest full-service mortgage banking companies in both retail origination and mortgage servicing.

With its commitment to superior customer service and competitive products, the company is ranked 17th in servicing, with more than $47 billion in its portfolio. Based on total loans originated in 2001, the company ranked 18th in the nation with $24.35 billion.(a)

The First Horizon family of lending companies includes First Horizon Home Loans, First Horizon Wholesale, First Tennessee Home Loans, First Horizon Equity Lending and First Horizon Money Center.

First Horizon Home Loans' parent company is First Tennessee National Corp. (NYSE: FTN), a nationwide, diversified financial services institution. With headquarters in Memphis, Tenn., First Tennessee National Corp. is one of the 50 largest bank holding companies in the United States in market capitalization and asset size.

(a)Rankings source: Inside Mortgage Finance