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Washington Mutual, Inc. Announces the Convertibility of New American Capital, Inc. 2-3/4% Convertible Cash to Accreting Senior Notes Due March 15, 2016

SEATTLE--(BUSINESS WIRE)--July 3, 2006--Washington Mutual, Inc. (NYSE:WM) today announced that New American Capital, Inc.'s 2-3/4% Convertible Cash to Accreting Senior Notes due March 15, 2016 (the "Notes") will be convertible into shares of Washington Mutual common stock during the quarter ended September 30, 2006.

New American Capital, Inc., a wholly-owned subsidiary of Washington Mutual, Inc., is the successor by merger to Providian Financial Corporation ("Providian"). The Notes were originally issued by Providian pursuant to a supplemental indenture between Providian and J.P. Morgan Trust Company, National Association, as Trustee (the successor trustee to Bank One Trust Company, N.A. and The First National Bank of Chicago), dated March 19, 2004, which was amended by a supplemental indenture by and among Providian, Washington Mutual, Inc., New American Capital, Inc., and J.P. Morgan Trust Company, National Association (as successor trustee), dated as of October 1, 2005 (as so amended, the "Supplemental Indenture").

The Notes are convertible pursuant to Section 3.01(a)(i) of the Supplemental Indenture, which provided that the Notes are convertible if the closing price of Washington Mutual's common stock exceeded $43.74 per share (the "Market Price Threshold") for at least 20 trading days of the 30 consecutive trading day period ending on the last day of the preceding calendar quarter. Holders of the Notes may convert the Notes into shares of Washington Mutual common stock during this fiscal quarter (July 1, 2006 until September 30, 2006) at the conversion rate in effect at the time of conversion.

About Washington Mutual

Washington Mutual is one of the nation's leading consumer and small business banks. At March 31, 2006, Washington Mutual and its subsidiaries had assets of $348.67 billion. The company was established in 1889 and currently operates more than 2,600 consumer and small business banking stores throughout the nation. Washington Mutual's press releases are available at www.wamunewsroom.com.

CONTACT: Washington Mutual, Inc.
Investor Contact: Jack Carsky, 415-278-4977

SOURCE: Washington Mutual, Inc.