EXHIBIT 99.1

PRESS RELEASE


               FIRST CAPITAL, INC. ANNOUNCES A 10% STOCK DIVIDEND

      Corydon, Indiana (June 20, 2006) - First Capital, Inc. (NasdaqSC: FCAP)
today announced that its Board of Directors declared a 10% stock dividend. The
additional shares will be issued on or about August 8, 2006 to stockholders of
record as of the close of business on July 19, 2006. Stockholders of record will
receive one new share for every ten shares owned as of July 19, 2006.

      Fractional shares will not be issued. Each stockholder entitled to a
fractional share will receive instead a cash payment equal to the closing price
of the Company's common stock as reported on the Nasdaq Stock Market on the
record date, multiplied by the stockholder's fractional share interest.

      Following the payment of the stock dividend, the Company will have
2,846,572 shares of common stock issued and outstanding.

      First Capital, Inc. is the holding company for First Harrison Bank. First
Harrison currently operates eleven full service offices in the Indiana
communities of Corydon (2), Palmyra, New Salisbury, Georgetown, Hardinsburg,
Greenville, New Albany (2), Floyds Knobs and Jeffersonville, which provide
deposit and lending services to customers in southeastern Indiana. First
Harrison also offers online banking and electronic bill payments by accessing
the Bank website at www.firstharrison.com.

This press release may contain forward-looking statements within the meaning of
the federal securities laws. These statements are not historical facts, rather
statements based on the Company's current expectations regarding its business
strategies and their intended results and its future performance.
Forward-looking statements are preceded by terms such as "expects," "believes,"
"anticipates," "intends" and similar expressions.

Forward-looking statements are not guarantees of future performance. Numerous
risks and uncertainties could cause or contribute to the Company's actual
results, performance and achievements to be materially different from those
expressed or implied by the forward-looking statements. Factors that may cause
or contribute to these differences include, without limitation, general economic
conditions, including changes in market interest rates and changes in monetary
and fiscal policies of the federal government; legislative and regulatory
changes; and other factors disclosed periodically in the Company's filings with
the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements,
readers are cautioned not to place undue reliance on them, whether included in
this report or made elsewhere from time to time by the Company or on its behalf.
Except as may be required by applicable law or regulation, the Company assumes
no obligation to update any forward-looking statements.

Contact:

Chris Frederick
Chief Financial Officer
(812) 738-2198 ext. 234