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Capital One Awards Stock Options to Make All Associates Owners; More Than 6,000 Associates Started After May 1, 1998

May 12, 1999 at 1:58 PM EDT
  FALLS CHURCH, Va., May 12 /PRNewswire/ -- Understanding employee ownership
programs are a key component of a company's success, on April 29, 1999,
Capital One Financial Corporation (NYSE: COF) awarded 50 stock options to all
mid- and entry-level associates who started between May 1, 1998 and April 29,
1999 -- a total of more than 6,000 associates. This is the third time Capital
One awarded stock options to associates at these levels under a program known
as the "OneGrant." On April 30, 1998, a similar grant was awarded to
associates employed at that time.
    "We believe a strong sense of ownership is closely linked to Capital One's
success. In the last four years, Capital One has catapulted from a small
Virginia credit card company into a global, information-based marketing
company," said Richard D. Fairbank, Chairman and Chief Executive Officer. "We
have been recognized by business and industry leaders for our achievements,
from Fortune's listing of the '100 Best Places to Work' in the country
(Capital one ranked 41) to Business Week's list of the best performers of the
S&P 500 (Capital One ranked 15)."
    Nigel Morris, President and Chief Operating Officer, stated, "Our growth
has been phenomenal. We awarded a OneGrant last April that made all associates
owners. But since that time, we have added more than 6,000 associates. Now,
through this latest announcement, as of April 29, everyone at Capital One is
an owner, again. We are aligning our associates with our shareholders."
    This stock option was granted at $169.375 on April 29, 1999, and will vest
on April 29, 2002. The previous options were granted to associates on April
30, 1998, at the price of $95.125 and will vest on April 30, 2001. The
original option program was awarded on March 25, 1995.
    Last week, Capital One announced its Board of Directors approved a
three-for-one stock split of the company's common stock. The split will be in
the form of a 200 percent stock distribution, or two share stock dividend, to
be distributed on June 1, 1999, to stockholders of record on May 20, 1999.
    Additionally, Capital One announced another employee ownership program
when its Board of Directors voted to give the 143 most senior executives an
opportunity to risk compensation for performance-based stock options that will
vest early only if the stock price reaches a certain target.
    Dennis Liberson, Senior Vice President for Human Resources, said, "We are
committed to being the employer of choice in each of the labor markets in
which we have a presence. Fortune magazine recognized that we are one of only
28 companies of the top 100 places to work that award stock options to all
employees. Our recent stock option grant reaffirms our commitment to associate
ownership and providing a great place to work for out associates."
    Currently, Capital One has operations throughout Virginia, Massachusetts,
Florida, Texas, as well as the United Kingdom. Also, the company is expanding
its operations in new markets, including Seattle/Federal Way, Washington and
Boise, Idaho. Capital One employs more than 12,000 associates worldwide.
Capital One is hiring in all its locations; those interested in opportunities
are invited to call the company's hiring line, 1-800-77-HIRE-1, or to visit
the company's Web site, www.CapitalOne.com.
    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 18.0 million customers and
$17.4 billion in managed loans outstanding as of March 31, 1998. Capital One
trades on the New York Stock Exchange under the ticker symbol "COF" and is
included in the S&P 500 Index.

    NOTE: Boise associates, who started with Capital One as of May 1, 1999,
will also receive the 1999 grant. For these associates, the grant price is
$173.5313; the date of the grant is May 1, 1999.

SOURCE  Capital One Financial Corporation