EXHIBIT 99.1
2980 Fairview Park Drive, Suite 1400, Falls Church, VA 22042-4525
--------------------------------------------------------------------------
FOR IMMEDIATE RELEASE: September 21, 2001
------------------------------------------
Contact(s): Sandi Abadinsky Paul Paquin
Corporate Communications Investor Relations
703-205-1063 703-205-1039
sandi.abadinsky@capitalone.com paul.paquin@capitalone.com
Capital One Financial Agrees To Acquire PeopleFirst Inc.
Expands Auto Financing Business
Falls Church, Va. (September 21, 2001) - Capital One Financial (NYSE:
COF) today announced it has agreed to acquire PeopleFirst Inc., the
nation's largest online provider of direct motor vehicle loans. This
acquisition will make Capital One one of the nation's largest
providers of direct-to-consumer auto loans.
The purchase price is 3.7 million shares of Capital One common
stock. Capital One has agreed to file a registration statement with
respect to the resale of such shares promptly after the consummation
of this acquisition. Capital One confirmed that it is on track to
meet its projected third quarter earnings as well as its previously
announced 30 percent growth in earnings per share for 2001.
"Leveraging PeopleFirst's successful online business model with
Capital One's proven ability to customize products will ultimately
benefit auto buyers nationwide," said Richard D. Fairbank, Capital
One's Chairman and Chief Executive Officer. PeopleFirst is the
pioneer of an innovative financing option that allows consumers to
conveniently secure financing before purchasing a motor vehicle.
Capital One entered the auto finance business in 1998 when it
acquired Summit Acceptance Corporation and is now growing the business
as Capital One Auto Finance. "With the acquisition of PeopleFirst,
Capital One extends its auto finance strategy to superprime consumers
and those directly seeking flexible financing online," Fairbank said.
-more-
Capital One Financial Agrees to Acquire PeopleFirst
page 2
PeopleFirst Inc., a privately held company with more than 270
employees based in San Diego, CA, will become a wholly owned
subsidiary of Capital One. After the acquisition, the current senior
team at PeopleFirst will continue to manage its operations.
PeopleFirst has provided nearly $2 billion worth of financing to help
customers purchase motor vehicles since the company started
originating loans in 1997.
"We are excited to become part of the Capital One family," said
Gary Miller, CEO and co-founder of PeopleFirst. " Not only does
Capital One bring significant resources and opportunities for
PeopleFirst to leverage, but they also share our strong commitment to
customers."
Credit Suisse First Boston advised Capital One on this
acquisition; Merrill Lynch advised PeopleFirst. The parties intend to
close the transaction as soon as practicable upon satisfaction of
closing conditions.
About Capital One
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 38.1
million customers and $35.3 billion in managed loans outstanding as of
June 30, 2001. Capital One, a Fortune 500 company, is one of the
largest providers of MasterCard and Visa credit cards in the world.
Capital One trades on the New York Stock Exchange under the symbol
"COF" and is included in the S&P 500 index.
About PeopleFirst Inc.
Founded in 1995, PeopleFirst is the nation's largest online motor
vehicle lender, originating and servicing consumer auto and motorcycle
loans, primarily via the Internet. PeopleFirst is the pioneer of an
innovative financing option that gives consumers the flexibility to
finance their purchase of a new or used car or motorcycle at virtually
any dealership in the country up to their pre-approved loan amount
without having to renegotiate the terms. The company also provides
financing for lease buyouts, refinances of existing loans, and the
purchase of vehicles from private individuals. The company presently
offers auto and motorcycle loans in 48 states plus the District of
Columbia. To obtain more information about PeopleFirst, visit the
company's Web site at http://www.peoplefirst.com.
Capital One Financial Agrees to Acquire PeopleFirst
page 3
# # #
Capital One cautions that its current expectations for its earnings
are forward-looking statements and actual results could differ
materially due to a number of factors, including competition in the
credit card, installment loan, and auto finance industries and general
economic conditions affecting consumer income and spending, which may
affect consumer borrowing, bankruptcies, delinquencies, and charge-
offs. A discussion of these and other factors can be found in Capital
One's annual 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, 2001.