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U.S. Bancorp Announces Strategic Alliance with Nuveen Investments
Strategic Alliance to Include the Long-Term Asset Management Business of U.S. Bancorp's FAF Advisors

MINNEAPOLIS, Jul 29, 2010 (BUSINESS WIRE) -- U.S. Bancorp (NYSE: USB) today announced that it will receive a 9.5 percent stake in Chicago-based Nuveen Investments and cash consideration in exchange for the long-term asset management business of FAF Advisors (FAF). FAF, an affiliate of U.S. Bancorp, is advisor to the First American Funds family of mutual funds. This transaction will add approximately $25 billion of long-term assets under management, which are currently managed by FAF Advisors, to Nuveen Asset Management, which manages $75 billion in municipal fixed income assets and serves as the advisor of the Nuveen funds. Upon completion of the transaction, Nuveen Investments, which currently manages $150 billion of assets across several high-quality affiliates, will manage a combined total of $175 billion in institutional and retail assets.

"Our new strategic alliance with Nuveen Asset Management will significantly enhance the long-term value of U.S. Bancorp's investment in the asset management business," stated Lee Mitau, executive vice president and general counsel of U.S. Bancorp, who oversees FAF Advisors. "FAF will continue to focus on its distinctly successful investment process, and its high-quality mutual fund offerings will benefit appreciably from the expanded reach of Nuveen's strong distribution capabilities. Further, U.S. Bank's Wealth Management clients will benefit from increased opportunities arising from the broader array of capabilities Nuveen brings to this alliance. We look forward to working with Nuveen to support the newly formed venture, and we are pleased to be able to participate in its future success through our continued equity ownership."

John Amboian, chairman and chief executive officer of Nuveen Investments, noted, "We look forward to bringing the combined expertise and high-quality investment strategies of FAF and Nuveen Asset Management to an expanded set of clients, as a result of this powerful and complementary new relationship. In addition to enhancing Nuveen Asset Management's investment platform, the combination of our two respected mutual fund families will yield stronger, more diversified mutual fund offerings for the investors and advisors we serve."

FAF and Nuveen Asset Management will operate under the name of Nuveen Asset Management with operations in Chicago and Minneapolis once this strategic alliance is completed. The vast majority of the employees of FAF joining the combined business will remain located in Minneapolis. The transaction is expected to close before year end and is subject to customary closing conditions and approvals of the mutual funds' boards of directors.

U.S. Bancorp will retain the investment products and capabilities to support custom cash management, securities lending, stable value and advisory services to the First American Money Market Funds. These investment products and services will continue to be provided by the same team that provided them prior to this transaction. This team will operate under the new name, "U.S. Bancorp Asset Management," and will be led by Joseph Ulrey, who will be named chief executive officer of U.S. Bancorp Asset Management.

Liquidity and cash related investment vehicles will continue to be a core competency of U.S. Bank where it has achieved both scale and significant expertise, with almost $60 billion in assets under management. U.S. Bank's clients will see no change to the investment teams that have supported them and provided excellent investment performance over the years. U.S. Bank is committed to investing in the resources necessary to manage these products going forward. U.S. Bancorp Asset Management will continue to have its headquarters at its present location in downtown Minneapolis.

Tom Schreier, who currently is chief executive officer of FAF, will become a vice chairman of Nuveen Investments and oversee the firm's efforts to further scale and develop its business of providing high quality investment products to its clients. Nuveen Asset Management will report into Nuveen Investments through Schreier.

U.S. Bancorp was advised by Lazard and Cleary Gottlieb Steen & Hamilton LLP on this transaction. Nuveen was advised by BofA Merrill Lynch and Winston & Strawn LLP.

Nuveen Investments provides high quality investment services designed to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds, Winslow Capital and Nuveen HydePark. In total, the company managed $150 billion of assets on June 30, 2010.

FAF Advisors, Inc., a registered investment advisor, is a U.S. asset-management firm with more than $86 billion under management/administration in equity, fixed income, specialty and cash investment strategies, as of June 30, 2010. Headquartered in Minneapolis, FAF Advisors has more than 300 employees, and its portfolio managers average more than 20 years of industry experience. FAF Advisors, Inc., serves as the investment advisor to First American Funds. First American Funds are distributed by Quasar Distributors, LLC, an affiliate of the investment advisor. FAF Advisors, Inc. is a subsidiary of U.S. Bank National Association. U.S. Bank is not responsible for and does not guarantee the products, services, or performance of its affiliates and third parties.

U.S. Bancorp, with $283 billion in assets as of June 30, 2010, is the parent company of U.S. Bank, the fifth largest commercial bank in the United States. The company operates 3,002 banking offices in 24 states and 5,309 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at http://www.usbank.com.

Investors should carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. The prospectus and, if available, the summary prospectus contain this and other information; call 800.677.3863 or visit FirstAmericanFunds.com for a copy. Please read carefully before investing.

Mutual fund investing involves risk; principal loss is possible.

First American Funds and Quasar are not affiliated with Nuveen Investments.

Investment products, including shares of mutual funds, are not obligations of, or guaranteed by, any bank, including U.S. Bank or any U.S. Bancorp affiliate, nor are they insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency. An investment in such products involves investment risk, including possible loss of principal.

Forward-Looking Statements

The following information appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date made. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of U.S. Bancorp. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. Global and domestic economies could fail to recover from the recent economic downturn or could experience another severe contraction, which could adversely affect our revenues and the values of our assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential real estate markets, could cause additional credit losses and deterioration in asset values. In addition, our business and financial performance could be impacted as the financial industry restructures in the current environment, by increased regulation of financial institutions or other effects of recently enacted legislation, and by changes in the competitive landscape. Our results could also be adversely affected by continued deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in our investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management's ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk. Finally, there can be no assurance that we will realize the anticipated benefits of this transaction with Nuveen Asset Management.

For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorp's Annual Report on Form 10-K for the year ended December 31, 2008, on file with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Corporate Risk Profile," and all subsequent filings with the Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.

SOURCE: U.S. Bancorp

U.S. Bancorp
Teri Charest (Media), 612-303-0732
Judith T. Murphy (Analysts), 612-303-0783

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding U.S. Bancorp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

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