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DALLAS (June 16, 1999) - BankDirect announced today the launch of its Internet banking web site at www.bankdirect.com. BankDirect is an independent Internet banking division of Dallas-based Texas Capital Bank. BankDirect will provide no-fee, high interest checking, savings and money market accounts and free bill pay service to consumers nationwide. BankDirect is also touting increased customer benefits including convenient online services, enhanced customer service and higher interest rates.

Jody Grant, Chairman and CEO of both Texas Capital Bancshares Inc. and BankDirect turned to his former company, EDS, to help establish BankDirect. "We are especially delighted to have EDS as our information technology partner," Grant said. "EDS, which provides support for all of BankDirect's banking platforms, is a major shareholder of Texas Capital Bancshares." Prior to launching BankDirect, Mr. Grant was Executive Vice President and CFO of EDS.

BankDirect plans to invest its acquired deposits via traditional lending capabilities available through Texas Capital Bank. "Our marketing strategy is designed to gather deposits from across the country very rapidly," said Rose Hultgren, president of BankDirect. "We believe that our experience and established ability to deploy these assets give BankDirect a significant advantage over our Internet-only banking competitors," she said.

BankDirect's "no branch" model also provides a distinct advantage over traditional banks. "For the most part, traditional banks rely on branch locations to generate and conduct business, but the Internet revolution has forced them to offer online banking services to their customers," Hultgren said. "These banks cannot effectively compete for online-only customers because they have too much invested in the branch location system; BankDirect is targeting that online-only customer," she said.

"BankDirect is the proud realization of a vision driven by research and creativity. We did a lot of homework to make sure BankDirect gives consumers the specific online services and features they want," Grant said.

"Of the consumers we polled, 90% identified 24-hour customer service as a 'most desired' feature from an Internet bank," said Rose Hultgren. "We believe we have raised the bar for customer service by offering a 24-hour, seven day a week live support hotline. It differentiates BankDirect in the online marketplace," she said.

BankDirect also delivers more convenience by enabling customers to check their balances and perform banking activities 24 hours a day. "Our research showed that today's customer wants a better alternative to the corporate banking giants," Hultgren said. "We give them the ability to bank on their own terms - anytime, anywhere."

Another incentive to consumers offered by BankDirect is the ability to earn higher interest rates. By operating without the need or expense of brick-and-mortar branch offices and staff, BankDirect offers consumers 3.25% on checking accounts and 5.25% on money market accounts -- significantly higher rates than those offered by traditional banks. And the accounts have no monthly maintenance fees.

Here's how it works: customers bank electronically. Deposits are made via direct deposit, wire transfer or can be mailed directly to BankDirect via postage-paid envelopes. Cash withdrawals are made through ATM machines or by cashing account checks. Bills can be paid directly through BankDirect's free online bill paying service. Customers can even open accounts with a credit card.

Virtual banking, according to many experts, is positioned to revolutionize the banking industry. In 1998, 6.9 million households were banking online. By the year 2000, that number is expected to grow to 16 million; by 2002, 24.2 million. Many expect the online banking surge to rival the current online brokerage craze.

BankDirect is being marketed through an aggressive advertising and promotional program that features online, print and radio advertising utilizing the tagline "BankDirect -- Easy. Money."

"BankDirect will be a major influence on Texas Capital Bank's growth strategy," Grant said. "We're very well capitalized, and BankDirect provides a very efficient means to build a national banking presence."

"Given the anticipated growth for this market, our commitment to customer focused services, and live, around-the-clock support, we believe we're in a unique position to emerge as a leader in this new era of banking," Hultgren said.

BankDirect is the national Internet banking division of Texas Capital Bank, a Dallas-based bank that provides banking services to businesses and high net worth individuals. Texas Capital Bank is privately owned and operated by the holding company, Texas Capital Bancshares, Inc. BankDirect is located on the World Wide Web at www.bankdirect.com.

Contact Information:
Rose Hultgren
BankDirect
214-932-6690