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Exhibit 99.1
FOR IMMEDIATE RELEASE: Contact: Paul Paquin Tatiana Stead
--------------------- V.P., Investor Relations Media Relations
January 18, 2001 (703) 205-1039 (703) 205-1070
Capital One Issues Common Stock
Falls Church, Va. (January 18, 2001) -- Capital One Financial Corporation (NYSE:
COF) today announced that it sold 6.5 million shares of newly issued, freely
tradeable common stock to J.P. Morgan Securities Inc. raising approximately $400
million in new equity capital. J.P. Morgan is expected to re-offer the shares to
investors. J.P. Morgan has the right to purchase an additional 975,000 shares
during the next 30 days, solely to cover over-allotments. This transaction marks
the first time that Capital One has raised equity capital through the sale of
newly issued common stock since the company's initial public offering in 1994.
The proceeds raised in this transaction will be used to support future
growth and for general corporate purposes. Closing of the sale of common stock
is expected to occur on January 23, 2001.
"As previously announced, we expect to achieve 30 percent earnings growth
and at least 20 percent return on equity for the year 2001," said Richard D.
Fairbank, Chairman and Chief Executive Officer. Achieving these targets would
mark the seventh consecutive year Capital One has exceeded its twin long-term
objectives of at least 20 percent annual earnings growth and at least 20 percent
return on equity.
The company cautioned, however, that its current expectations for 2001
earnings and return on equity are forward-looking statements and actual results
could differ materially from current expectations due to a number of factors,
including: competition in the credit card industry; the actual account and
balance growth achieved by the company; the company's ability to access the
capital markets at attractive rates and terms to fund its operations and future
growth; and general economic conditions affecting consumer income and spending,
which may affect consumer bankruptcies, defaults and charge-offs. A discussion
of these and other factors can be found in Capital One's annual
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Capital One Issues Common Stock
and other reports, filed with the Securities and Exchange Commission, including,
but not limited to, Capital One's report on Form 10-K for the year ended
December 31, 1999.
Headquartered in Falls Church, Virginia, Capital One Financial Corporation
(www.CapitalOne.com) is a holding company whose principal subsidiaries, Capital
One Bank and Capital One, F.S.B., offer consumer lending products. Capital
One's subsidiaries collectively had 33.8 million customers and $29.5 billion in
managed loans outstanding as of December 31, 2000. Capital One is one of the
major financial service providers on the Internet, with online account
decisioning, real-time account numbering, online retail deposits and a growing
number of customers serviced online. Capital One is a FORTUNE 500 company that
trades on the New York Stock Exchange under the symbol "COF" and is included in
the S&P 500 index.
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