Milberg Weiss Announces The Filing Of A Class Action Suit on Behalf of Purchasers of the Securities of Capital One Financial Corp

Business Wire, July 19, 2002

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--July 19, 2002

The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on July 19, 2002, on behalf of purchasers of the securities of Capital One Financial Corp. ("Capital One" or the "Company") (NYSE:COF) between January 15, 2002 and July 16, 2002, inclusive, (the "Class Period").

A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/cases/capitalone/

The action is pending in the United States District Court for the Eastern District of Virginia, Alexandria Division, against defendants Capital One, Richard D. Fairbank (CEO and Chairman), Nigel W. Morris (President and COO) and David M. Willey ("Willey").

The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between January 15, 2002 and July 16, 2002. According to the complaint, Capital one issued numerous press releases regarding its performance during the Class Period which represented that the Company was experiencing quarter after quarter of record earnings and revenue growth while maintaining "stringent risk management practices" and adequate loan loss reserves. The complaint further alleges that these, and other, representations were materially false and misleading because they failed to disclose that Capital One was in violation of federal guidelines regarding adequate levels of capitalization and loan loss reserves and that it was not effectively managing its rapid growth. On July 16, 2002, Capital One revealed that it had entered into an agreement with regulators, which required Capital One to boost reserves by $247 million in the second quarter of 2002, tie-up additional capital and institute infrastructure reforms in order to deal adequately with its high rate of growth, especially in the subprime market. In reaction to the announcement, Capital One's stock plummeted by 39%, falling from a $50.60 per share close on July 16 to $30.48 per share by the close of July 17, on extremely heavy trading volume. During the Class Period, as alleged in the complaint, Capital One insiders, including defendant Willey, profited by selling a total of over $8.2 million in Capital One common stock at artificially inflated prices and the Company undertook a convertible debt offering for $650 million on April 19, 2002.

If you bought the securities of Capital One between January 15, 2002 and July 16, 2002, you may, no later than September 17, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.

Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 190-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Philadelphia and Seattle, and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:

Steven G. Schulman or Samuel H. Rudman

One Pennsylvania Plaza, 49th fl.

New York, NY, 10119-0165

Phone number: (800) 320-5081

Email: capitalone@milbergNY.com

Website: http://www.milberg.com