News Releases

PITTSBURGH, May 9 /PRNewswire-FirstCall/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) announced today that it has signed a definitive agreement to acquire ARCS Commercial Mortgage. Calabasas Hills, California- based ARCS has 10 origination offices in the United States and has been a leading agency lender for the past decade. It originated more than $2.1 billion of loans in 2006 and services approximately $13 billion of loans.

"ARCS will provide PNC with expertise and a customer base that complement our own. Together we will offer the full spectrum of financing and servicing options to multifamily owners and investors nationally," said William S. Demchak, PNC vice chairman and head of Corporate & Institutional Banking. "Multifamily housing is one of the largest lending sectors in commercial real estate, and agencies are leading providers of permanent financing products for market rate and affordable multifamily projects."

Financial terms of the agreement were not disclosed. The acquisition is expected to close in the third quarter of 2007, pending regulatory and agency approvals. It is expected to be accretive to earnings within the first year.

"We at ARCS are excited by this opportunity to provide our clients with the broadest possible line of lending products," said Howard J. Levine, founder and chief executive officer of ARCS Commercial Mortgage. "PNC's leadership in commercial real estate finance and its commitment to superior customer service dovetails well with our own. PNC values our vision and our continuing quest for innovative lending solutions to meet our customers' needs. Together, ARCS and PNC can now do even more."

Beekman Advisors acted as financial adviser to ARCS on the transaction.

The PNC Financial Services Group, Inc. (http://www.pnc.com/) is one of the nation's largest diversified financial services organizations providing retail and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.

Cautionary Statement Regarding Forward-Looking Information

We make statements in this news release, and we may from time to time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or other matters regarding or affecting PNC that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project" and other similar words and expressions.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. We do not assume any duty and do not undertake to update our forward-looking statements. Actual results or future events could differ, possibly materially, from those that we anticipated in our forward-looking statements, and future results could differ materially from our historical performance.

Our forward-looking statements are subject to the following principal risks and uncertainties. We provide greater detail regarding some of these factors in our 2006 Form 10-K, including in the Risk Factors and Risk Management sections of that report. Our forward-looking statements may also be subject to other risks and uncertainties, including those discussed elsewhere in this Report or in our other filings with the SEC.

  -- Our business and operating results are affected by business and
     economic conditions generally or specifically in the principal markets
     in which we do business.  We are affected by changes in our customers'
     and counterparties' financial performance, as well as changes in
     customer preferences and behavior, including as a result of changing
     business and economic conditions.

  -- The value of our assets and liabilities, as well as our overall
     financial performance, are also affected by changes in interest rates
     or in valuations in the debt and equity markets.  Actions by the
     Federal Reserve and other government agencies, including those that
     impact money supply and market interest rates, can affect our
     activities and financial results.

  -- Our operating results are affected by our liability to provide shares
     of BlackRock common stock to help fund BlackRock long-term incentive
     plan ("LTIP") programs, as our LTIP liability is adjusted quarterly
     ("marked-to-market") based on changes in BlackRock's common stock
     price and the number of remaining committed shares, and we recognize
     gain or loss on such shares at such times as shares are transferred for
     payouts under the LTIP programs.

  -- Competition can have an impact on customer acquisition, growth and
     retention, as well as on our credit spreads and product pricing, which
     can affect market share, deposits and revenues.

  -- Our ability to implement our business initiatives and strategies could
     affect our financial performance over the next several years.

  -- Our ability to grow successfully through acquisitions is impacted by a
     number of risks and uncertainties related both to the acquisition
     transactions themselves and to the integration of the acquired
     businesses into PNC after closing.  These uncertainties continue to be
     present with respect to the integration of Mercantile Bankshares
     Corporation.

  -- Legal and regulatory developments could have an impact on our ability
     to operate our businesses or our financial condition or results of
     operations or our competitive position or reputation.  Reputational
     impacts, in turn, could affect matters such as business generation and
     retention, our ability to attract and retain management, liquidity and
     funding.  These legal and regulatory developments could include:  (a)
     the unfavorable resolution of legal proceedings or regulatory and other
     governmental inquiries;  (b) increased litigation risk from recent
     regulatory and other governmental developments;  (c) the results of the
     regulatory examination process, our failure to satisfy the requirements
     of agreements with governmental agencies, and regulators' future use of
     supervisory and enforcement tools;  (d) legislative and regulatory
     reforms, including changes to laws and regulations involving tax,
     pension, and the protection of confidential customer information; and
     (e) changes in accounting policies and principles.

  -- Our business and operating results are affected by our ability to
     identify and effectively manage risks inherent in our businesses,
     including, where appropriate, through the effective use of third-party
     insurance and capital management techniques.

  -- Our ability to anticipate and respond to technological changes can have
     an impact on our ability to respond to customer needs and to meet
     competitive demands.

  -- The adequacy of our intellectual property protection, and the extent of
     any costs associated with obtaining rights in intellectual property
     claimed by others, can impact our business and operating results.

  -- Our business and operating results can also be affected by widespread
     natural disasters, terrorist activities or international hostilities,
     either as a result of the impact on the economy and financial and
     capital markets generally or on us or on our customers, suppliers or
     other counterparties specifically.

  -- Also, risks and uncertainties that could affect the results anticipated
     in forward-looking statements or from historical performance relating
     to our equity interest in BlackRock, Inc. are discussed in more detail
     in BlackRock's 2006 Form 10-K, including in the Risk Factors section,
     and in BlackRock's other filings with the SEC, accessible on the SEC's
     website and on or through BlackRock's website at
     http://www.blackrock.com/.

We grow our business from time to time by acquiring other financial services companies. Acquisitions in general present us with risks other than those presented by the nature of the business acquired. In particular, acquisitions may be substantially more expensive to complete (including as a result of costs incurred in connection with the integration of the acquired company) and the anticipated benefits (including anticipated cost savings and strategic gains) may be significantly harder or take longer to achieve than expected. In some cases, acquisitions involve our entry into new businesses or new geographic or other markets, and these situations also present risks resulting from our inexperience in these new areas. As a regulated financial institution, our pursuit of attractive acquisition opportunities could be negatively impacted due to regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre-acquisition operations of an acquired business may cause reputational harm to PNC following the acquisition and integration of the acquired business into ours and may result in additional future costs arising as a result of those issues. Post-closing acquisition risk continues to apply to Mercantile as we complete the integration.

SOURCE: The PNC Financial Services Group, Inc.

CONTACT: Media, Fred Solomon, +1-412-762-7544,
frederick.solomon@pnc.com, , or Amy Vargo, +1-412-762-1535, amy.vargo@pnc.com
, or Investors, William H. Callihan, +1-412-762-8257,
investor.relations@pnc.com, all of The PNC Financial Services Group, Inc.

Web site: http://www.pnc.com/
http://www.blackrock.com/

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