BB&T to Acquire 70% of Sterling Capital Management

    February 16, 2005

BB&T will acquire a 70% ownership interest in Sterling Capital Management LLC of Charlotte, N.C.

Privately-held Sterling Capital Management, with more than $8 billion in assets under management, provides investment management services to institutional clients and high net worth individuals.

Sterling will continue to be led by its team of five managing directors, which has worked together for nearly a decade. The firm will keep its name and all employees and operate as an independently managed subsidiary of BB&T Corporation.

The transaction, which is subject to regulatory approval, is expected to be completed in the second quarter. Terms were not disclosed.

“We are certainly delighted to be partnering with such a well respected and high-performing asset management firm that shares our corporate values and ethics,” said Corporate Financial Services Manager Ken Miller, who oversees BB&T’s fee-based business lines.

“Sterling Capital Management will complement our existing asset management capabilities provided through BB&T Asset Management, a registered investment advisory firm that will continue to be led by Keith Karlawish as president. The addition of Sterling Capital Management makes us even stronger by bringing a sharper institutional focus to our organization, and is consistent with our commitment to add scale to our asset management business.”

Founded in 1970, Sterling Capital Management is a registered investment advisor with 42 employees. In addition to its Charlotte headquarters, it operates three regional offices in Georgia and California.

Sterling manages more than $2.7 billion in small- to mid-cap value equity portfolios and more than $5.3 billion in both taxable securities and tax-exempt municipal bond portfolios.

The firm has 110 corporate, public, endowment and foundation, health care, and Taft-Hartley clients in the United States and abroad and more than 100 individual high net worth clients. It also manages two mutual funds — the Sterling Capital Small Cap Value Fund and the Sterling Capital Balanced Fund.

“Our firm is much like BB&T in that we both firmly believe in providing superior investment performance and very personalized, highly attentive service,” said Mark Whalen, managing director of Sterling Capital Management. “That’s a major reason why we’re enthusiastic about teaming with BB&T. There will be no change to our investment philosophy, process or people.”

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