Washington Mutual Realigns Prime and Subprime Residential Lending Under One Management Team; Move Part of Ongoing Efforts to Serve Customers Better; Improve Operating Efficiencies

The realignment is designed to:

-- Deliver a superior customer experience across all SFR mortgage lending products and delivery channels;

-- Create a unified SFR mortgage lending strategy to better leverage all of Washington Mutual's distribution points; and

-- Streamline and simplify operations, driving efficiencies and operational excellence consistently across all of the company's SFR mortgage lending operations.

Under the new structure, management responsibility for Long BeachMortgage Company (the company's subprime lending business) andMortgage Banker Finance (warehouse lending) will move from theCommercial Group to David Schneider, president of the company's HomeLoans group.

The balance of the Commercial Group, including the company'sleading multifamily lending business, will report to industry veteranAl Brooks. Brooks, who has been with Washington Mutual for sevenyears, has been a driving force behind the success of the Commercialunit.

"Bringing our leading prime and subprime lending businesses undercommon leadership provides us the opportunity to fully leverage ourresources to better serve our customers and shareholders," said SteveRotella, Washington Mutual President and Chief Operating Officer. "Atthe same time, we have a strong and experienced leadership team thatrecognizes the unique characteristics of the subprime business."

In a related development, Craig Chapman, president of thecompany's Commercial Group, will be leaving the company effectiveJanuary 31, 2006. Chapman said he supports the realignment but that hehas decided to seek new challenges outside of Washington Mutual.

Chapman will work closely with Rotella, Schneider and Brooks totransition his responsibilities and ensure the group's continuedsuccess.

Rotella added: "We thank Craig for his many contributions to oursuccess over the years and wish him all the best in his next careerendeavor."

About Washington Mutual

With a history dating back to 1889, Washington Mutual is aretailer of financial services that provides a diversified line ofproducts and services to consumers and commercial clients. AtSeptember 30, 2005, Washington Mutual and its subsidiaries had assetsof $333.62 billion. Washington Mutual currently operates more than2,500 retail banking, mortgage lending, commercial banking, andfinancial services offices throughout the nation. Washington Mutual'spress releases are available at www.wamunewsroom.com.

Forward Looking Statement

Our Form 10-K for 2004 and other documents that we filed with theSecurities and Exchange Commission have forward-looking statements. Inaddition, our senior management may make forward-looking statementsorally to analysts, investors, the media and others. Forward-lookingstatements can be identified by the fact that they do not relatestrictly to historical or current facts. They often include words suchas "expects," "anticipates," "intends," "plans," "believes," "seeks,""estimates," or words of similar meaning, or future or conditionalverbs such as "will," "would," "should," "could" or "may."Forward-looking statements provide our expectations or predictions offuture conditions, events or results. They are not guarantees offuture performance. By their nature, forward-looking statements aresubject to risks and uncertainties. These statements speak only as ofthe date they are made. We do not undertake to update forward-lookingstatements to reflect the impact of circumstances or events that ariseafter the date the forward-looking statements were made. There are anumber of factors, many of which are beyond our control that couldcause actual conditions, events or results to differ significantlyfrom those described in the forward-looking statements. Some of thesefactors are:

-- Volatile interest rates impact the mortgage banking business and could adversely affect earnings;

-- Rising unemployment or a decrease in housing prices could adversely affect credit performance;

-- The potential for negative amortization in the option adjustable-rate mortgage product could have an adverse effect on the company's credit performance;

-- The company faces competition from banking and nonbanking companies;

-- Changes in the regulation of financial services companies and housing government-sponsored enterprises, and in particular, declines in the liquidity of the mortgage loan secondary market, could adversely affect business;

-- General business and economic conditions, including movements in interest rates, the slope of the yield curve and the potential overextension of housing prices in certain geographic markets, may significantly affect the company's business activities and earnings;

-- Negative public opinion could damage the company's reputation and adversely affect earnings; and,

-- Matters related to Washington Mutual Card Services, including, among others, risk related to integration of systems and the realization of expected growth opportunities.