2003 Annual Report: Chairman's Letter to Shareholders (Page 4 of 7)

Winning the right way. A commitment to winning is a strong part of our corporate culture. An equally strong part of our culture is a commitment to winning the right way or, as we sometimes say, "doing the right thing."

Last fall, our company was named in a regulatory inquiry into practices within the mutual fund industry. In an effort to protect our customers and shareholders, and resolve the situation as quickly as possible, we immediately took the following steps:

• We launched our own internal inquiry;
• We announced that we will make appropriate restitution to shareholders of any funds that are found to have been adversely impacted;
• The Nations Funds board of trustees announced the appointment of independent individuals and firms to determine any monetary impact on the funds; and,
• We dismissed several associates from the company.

We run our company with strict adherence to fact-based principles of management, in which all individuals are held accountable for their decisions and their actions. I wrote at length last year about the confidence we have in our governance and risk management systems and processes. I continue to believe our governance systems are among the best in the world, even as we work every day to strengthen them.

We will continue to do whatever is necessary to maintain and build the trust and confidence of our customers, associates and shareholders. If we find something wrong, we'll fix it and be better for it. In the final analysis, I believe we will be judged not by the actions of a few of our associates, but rather by the way we responded as a team to a violation of our shared values. We have no tolerance for decisions or actions that fail to put the interests of our customers, associates and shareholders first. Our actions will reflect this stance in the future, just as they have in the past.