Doral Financial Corporation to Expense Employee Stock Options Beginning in 2003

Business Wire, Feb 4, 2003

Business Editors

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Feb. 4, 2003

Doral Financial Corporation (NYSE: DRL), announced today that beginning January 2003, it will expense the fair market value of stock options granted to employees using the "modified prospective" method under Statement of Financial Accounting Standards ("SFAS") No. 123 as amended by SFAS No. 148.

Under this method, Doral will expense the fair value of all employee stock options granted after January 1, 2003 as well as the unvested portions of previously granted options. Doral expects that the after tax expense associated with expensing stock options for 2003 will be about approximately $2.7 million or $0.04 per share, and will not have a material effect on its financial results for the year.

The Company, a financial holding company, is the largest residential mortgage lender in Puerto Rico, and the parent company of Doral Bank, Puerto Rico's fastest growing commercial bank, Doral Securities, a Puerto Rico based investment banking and brokerage firm, Doral Insurance Agency, Inc. and Doral Bank, FSB, a federal savings bank based in New York City.