Providian Credit Card Accounts Acquired by Washington Mutual

Two of the nation's leading financial service companies have come together as Washington Mutual, Inc. acquired Providian Financial in a stock and cash transaction valued at approximately $6.45 billion.


According to Kerry Killinger, chairman and CEO of Washington Mutual:

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"Today's transaction enhances Washington Mutual's consumer banking growth while strengthening our leadership position in the middle-market customer segment."

"Providian is a highly profitable business with solid credit quality.    Its focus on middle market consumers makes Providian a natural fit for our business and a winning combination for both companies' customers."

"This combination also helps to further diversify our balance sheet and earnings by adding attractive, high-yielding credit card assets, while improving our net interest margin and adding stable fee income."

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Killinger also added:

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"Providian's management has successfully developed innovative products and services, while providing superior customer support, strong underwriting and efficient operations.    Retaining Providian's leadership team helps ensure strong credit management and continuity of marketing expertise in the credit card business, while allowing Washington Mutual's management to remain focused on the priorities we've set forth for the entire company.    We are all committed to achieving our long term targets, producing top-tier performance in our industry and delivering superior long-term shareholder returns."

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Joseph Saunders, Providian's chairman and chief executive, will continue to run the credit card business and will report directly to Steve Rotella, Washington Mutual's president and chief operating officer.

Saunders noted:

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"This transition provides Providian shareholder financially attractive terms while allowing us to take the card business to the next level.    Washington Mutual's size and resources will allow us to operate with a lower cost structure and greater efficiency than we could on our own.    The compelling combination also enables us to leverage the strength of Washington Mutual's nationally recognized brand and utilize its more than 2,000 retail stores as a new growth channel."

"Our success as an independent company is in large part due to the dedication of our employees, whose efforts have made this next step forward possible.    We're pleased that Providian and our employees will be sharing our future with Washington Mutual, a company that shares our vision and values."

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The acquisition should be completed by the fourth quarter of 2005.    It is subject to approval of Providian shareholders and regulatory approvals.

The companies noted that Providian credit card customers should expect business as usual.    Their accounts, policies and payment procedures remain unchanged.

We welcome your comments about Providian credit card accounts in our popular credit forum!

For more information on Washington Mutual, please visit their website:
www.wamu.com

For more information on Providian, please visit their website:
www.providian.com

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