Providian Financial Announces Form 10-K Filing Extension

    Business Editors

    SAN FRANCISCO--(BUSINESS WIRE)--March 16, 2005--Providian Financial Corporation (NYSE:PVN) announced today that it plans to file for a fifteen-day extension of the March 16, 2005 filing deadline for its 2004 Annual Report on Form 10-K in order to complete the restatement and finalization of its financial statements. The Company now expects to file its 2004 Form 10-K on or before March 31, 2005. As previously announced, the Company is in the process of restating its prior period financial statements to correct certain errors relating to accounting for securitizations, specifically the methodology for estimating the value of interest-only strips.
    The Company disclosed the estimated impact of the restatement on net income in 2004 and prior years in a press release on February 28, 2005, subject to completion of management review and independent audit procedures. Adjustments, if any, resulting from this process are not currently expected to result in any significant changes to the estimated impact on net income for 2004 or the Company's outlook for 2005, as set forth in the February 28 press release. However, the Company can give no assurance as to the final results of the management review and audit procedures currently being performed.

    About Providian

    San Francisco-based Providian Financial is a leading provider of credit cards to mainstream American customers throughout the U.S. Combining experience, analysis, technology and outstanding customer service, Providian seeks to build long-lasting relationships with its customers by providing products and services that meet their evolving financial needs.

    Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. Forward-looking statements include, without limitation: expressions of "belief," "anticipation," or "expectations" of management; statements as to industry trends or future results of operations of the Company and its subsidiaries; and other statements that are not historical fact. Forward-looking statements are based on certain assumptions by management and are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include, but are not limited to, competitive pressures; factors that affect liquidity, delinquency rates, credit loss rates, and charge-off rates; general economic conditions; consumer loan portfolio growth; changes in the cost and/or availability of funding due to changes in the deposit, credit, or securitization markets; changes in the way the Company is perceived in such markets and/or conditions relating to existing or future financing commitments; the effect of government policy and regulation, whether of general applicability or specific to the Company, including restrictions and/or limitations relating to the Company's minimum capital requirements, deposit taking abilities, reserving methodologies, dividend policies and payments, growth, and/or underwriting criteria; year-end adjustments; changes in accounting rules, policies or assumptions or in the interpretation or application of such rules, policies or assumptions; changes to or the restatement of prior period financial statements or results as the result of accounting errors or other circumstances; the success of product development efforts; legal and regulatory proceedings, including the impact of ongoing litigation; interest rates; one-time charges; extraordinary items; the ability to recruit or replace key personnel; and the impact of existing, modified, or new strategic initiatives. These and other risks and uncertainties are described in detail in the Company's Annual Report on Form 10-K and Annual Report to Stockholders for the fiscal year ended December 31, 2003 under the headings "Cautionary Statement Regarding Forward-Looking Information" and "Risk Factors." Readers are cautioned not to place undue reliance on any forward-looking statement, which speaks only as of the date thereof. The Company undertakes no obligation to update any forward-looking statements.

    Note: Investor information is available on Providian Financial's website at www.providian.com.

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CONTACT: Providian Financial Corporation Jack Carsky, 415-278-4977 (Investor Contact) Alan Elias, 415-278-4189 (Media Contact)

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: BANKING EARNINGS SOURCE: Providian Financial Corporation

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