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Washington Mutual Announces Notice of Redemption and Offer to Purchase for Zero Coupon Notes Due 2021

SEATTLE--(BUSINESS WIRE)--Feb. 3, 2006--Washington Mutual, Inc. (NYSE:WM) announced today that its wholly owned subsidiary, New American Capital, Inc. ("NAC"), will redeem all of NAC's outstanding Zero Coupon Convertible Notes due 2021 (CUSIP No. 74406AAB8, the "Notes") on March 6, 2006. The Notes were originally issued by Providian Financial Corporation in February 2001.

Each of the Notes will be redeemed at a price equal to $553.24 for each $1,000 principal amount at maturity, which represents the issue price of the Notes plus accrued original issue discount to the redemption date. Based on the amount of currently outstanding Notes, the aggregate redemption amount is not expected to exceed $29,775,707.

Washington Mutual also announced today that, as required by the applicable indenture, NAC will, at the option of the holders thereof, repurchase each of the Notes on February 15, 2006 at a purchase price in cash per $1,000 principal amount at maturity equal to $552.07. NAC will also repurchase any Notes tendered between February 15, 2006 and March 2, 2006 at a purchase price in cash equal to $552.07 plus the accrued original issue discount to but excluding the purchase date, per $1,000 principal amount at maturity.

The Notes are currently convertible into an amount of cash to be determined in accordance with the indenture. The last reported sale price of Washington Mutual's common stock on January 30, 2006 was $42.27; therefore, a holder who converted on January 31, 2006 would have been entitled to receive, for each $1,000 principal amount at maturity of Notes, approximately $113.

Holders who elect to convert their Notes will not be entitled to have their Notes repurchased or redeemed. Holders may only convert their Notes until 5:00 p.m., Eastern time, on March 6, 2006; any Notes outstanding at that time that have not been converted will be automatically redeemed and original issue discount will cease to accrue.

The Notes are in book-entry form and their repurchase, redemption or conversion will be effected through the Depository Trust Company.

J.P. Morgan Trust Company, National Association, is acting as paying agent for repurchase offer and the redemption and as conversion agent for the Notes. Copies of the Notice of Redemption and the Notice of Offer to Purchase will be sent to the holders of record. Beneficial owners of the Notes may also contact their brokers, dealers, commercial banks, trust companies or other nominee through which they hold their Notes with questions and requests for assistance.

About Washington Mutual

With a history dating back to 1889, Washington Mutual is a retailer of financial services that provides a diversified line of products and services to consumers and commercial clients. At December 31, 2005, Washington Mutual and its subsidiaries had assets of $343.12 billion. Washington Mutual currently operates more than 2,600 retail banking, mortgage lending, commercial banking, and financial services offices throughout the nation. Washington Mutual's press releases are available at www.wamunewsroom.com.

CONTACT: Washington Mutual
Alan Elias, 415-278-4189 (Media)
Jack Carsky, 415-278-4977 (Investor Relations)

SOURCE: Washington Mutual, Inc.