IndyMac Announces 57% Increase in Third Quarter EPS to $0.55

Business Wire, Oct 18, 2001

The Rights Plan is not being adopted in response to any specific effort to acquire control of the Company. Rights plans have become increasingly common and have been adopted by nearly 60 percent of the S&P 500 companies.

In connection with the adoption of the Rights Plan, the Board declared a dividend distribution of one Right for each outstanding common share held by shareholders of record on November 1, 2001. The rights will not become exercisable unless an investor acquires 15 percent or more of the Company's common shares, or announces a tender offer that would result in the investor owning 15 percent or more of the common shares or makes certain regulatory filings seeking authority to acquire 15 percent or more of the common shares. If someone does acquire 15 percent or more of the Company's common shares, or acquires the Company in a merger or other transaction, each Right would entitle the holder, other than the investor triggering the Rights and related persons, to purchase the Company's common shares, or shares of an entity that acquires IndyMac, at half of the then current market price. The Rights Plan can be terminated or amended by the Board at any time.

Future Earnings Outlook

Current consensus earnings estimates for the Company for the fourth quarter of this year are $0.52 per share, which results in a full year estimate of $1.94 per share when combined with actual results for the first three quarters, well ahead of the Company's original guidance of $1.80 per share for the year. The Company believes the current fourth quarter consensus is at the low end of what it expects to achieve. Earnings are currently anticipated to fall within a range of $0.52 to $0.58 per share for the fourth quarter. Long term, the Company's goal is to grow earnings per share at a rate exceeding 15 percent per year.

IndyMac Bank is a leading technology-based mortgage bank with proprietary, award-winning systems to facilitate, among other things, automated underwriting and risk-based pricing on a nationwide basis via the Web. IndyMac's mortgage banking group offers multi-channel distribution of its mortgage products and services through a nationwide network of mortgage brokers, mortgage bankers and community financial institutions in addition to programs offered directly to consumers and through realtors and home builders. IndyMac Bank also provides community lending services through its limited Southern California branch system.

IndyMac Bank is FDIC-insured and offers a wide array of Web-enhanced banking services in addition to its core mortgage products and services and provides commercial loans to homebuilders for the purpose of constructing new single-family residences.

IndyMac's management is committed to delivering superior returns and increasing shareholder value. IndyMac's total annualized return to shareholders for the period 1993 through September 30, 2001 of 29 percent, under its current management team, has exceeded the comparable returns of 14 percent and 13 percent for the Dow Jones Industrial Average and S&P 500, respectively, for the same period.