Compass Bancshares Acquires Stavis, Margolis Advisory Services, Inc.

Compass Bancshares Acquires Stavis, Margolis Advisory Services, Inc.

    Business Editors

    BIRMINGHAM, Ala.--(BUSINESS WIRE)--Jan. 11, 2005--

Compass Continues Expansion of Fee-Based Businesses with Acquisition of Houston Investment Advisory Firm
    Compass Bancshares, Inc., (Nasdaq:CBSS) today announced that it has acquired Stavis, Margolis Advisory Services, Inc., a Houston, Texas-based investment advisory firm with approximately $500 million in assets under management.
    Founded in 1996, Stavis, Margolis Advisory Services, Inc. (SMA) is one of the most respected financial planning and investment advisory firms in the Houston area. SMA specializes in providing independent financial planning advisory services including investment, estate, retirement and business succession planning for high net worth individuals, corporate executives, business owners and professionals.
    "This acquisition is consistent with our business plan aimed at increasing fee-based revenues," said D. Paul Jones, Jr., Compass' chairman and chief executive officer. "The addition of Stavis, Margolis further enhances our ability to provide customers with first-class wealth management financial counseling and, as our primary financial planning arm in Houston, will enable us to more effectively serve customers in our key Southwestern markets."
    The SMA senior management team, led by chief executive officer Deborah McCully Stavis, and president Mary Banic Margolis, will continue in their present roles and will operate as a subsidiary of Compass Bank under the SMA name. "We are joining an outstanding organization," said Stavis. "We are thrilled at the synergy created through this newly-formed relationship. Compass' outstanding distribution network and well-thought-out management strategy, combined with our full-service advisory approach, will set a new standard in the delivery of financial services and products to high net worth individuals." Added Margolis, "Combining with Compass is a sound business decision designed to enhance our existing client's experience. Additionally, we strengthen our opportunities for growth as we offer a wide range of services to Compass' customers and gain access for our clients to Compass' banking products."
    Compass Bancshares, Inc. is a $28 billion Southwestern financial holding company which operates 376 full-service banking offices including 136 in Texas, 89 in Alabama, 71 in Arizona, 42 in Florida, 28 in Colorado and 10 in New Mexico. Compass is among the top 30 U.S. bank holding companies by asset size and ranks among the top earners of its size based on return on equity. The company's earnings per share have increased for 16 consecutive years and dividends per share have increased for 23 consecutive years. Shares of Compass' common stock are traded through the Nasdaq stock market under the symbol CBSS. Additional information about Compass, a member of the S&P 500 Index, can be found at www.compassweb.com.

    "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

    In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Compass Bancshares, Inc. notes that any statements in this press release, and elsewhere, that are not historical facts are "forward-looking statements" that involve risks and uncertainties that may cause the Company's actual results of operations to differ materially from expected results. For a discussion of such risks and uncertainties, see the Company's Annual Report on Form 10-K for the most recently ended fiscal year as well as its other filings with the U.S. Securities and Exchange Commission.

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CONTACT: Compass Bancshares, Inc. Ed Bilek, 205-297-3331 www.compassweb.com

KEYWORD: COLORADO ARIZONA ALABAMA TEXAS FLORIDA NEW MEXICO INDUSTRY KEYWORD: BANKING MERGERS/ACQ SOURCE: Compass Bancshares, Inc.

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