First United Corporation and Subsidiaries

Nine Year Summary of
Selected Financial Data

Management's Report of Internal Control Over Financial Reporting

     The Corporation’s management is responsible for establishing and maintaining adequate internal control over financial reporting. This internal control system was designed to provide reasonable assurance to management and the Board of Directors as to the reliability of the Corporation’s financial reporting and the preparation and presentation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States, as well as to safeguard assets from unauthorized use or disposition.
     An internal control system, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation and may not prevent or detect mis-statements in the financial statements or the unauthorized use or disposition of the Corporation’s assets. Also, projections of

any evaluation of effectiveness of internal controls to figure periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.
     Management assessed the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2004, based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control–Integrated Framework. Based on this assessment and on the foregoing criteria, management has concluded that, as of December 31, 2004, the Corporation’s internal control over financial reporting is effective.
     Ernst & Young LLP, an independent registered public accounting firm, has audited the Consolidated Financial Statements of the Corporation for the three years ended December 31, 2004,

appearing elsewhere in this annual report, and has issued an attestation report on management’s assessment of the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2004, as stated in their report, which is included herein.
William B. Grant                    Robert W. Kurtz
Chairman of the Board and,    President and,
Chief Executive Officer          Chief Financial Officer