Schwab Chairman and CEO Exercises Ten-Year Options

Options Granted in 1998 Set to Expire in May

Friday, April 25, 2008 1:02 pm PDT

Dateline:

SAN FRANCISCO

Public Company Information:

NASDAQ:
SCHW

SAN FRANCISCO--(BUSINESS WIRE)--The Charles Schwab Corporation (Nasdaq:SCHW) today announced its Chairman and CEO Charles R. Schwab exercised options on 3,304,035 company shares. These options were set to expire on May 11, 2008. Unexercised options are cancelled upon expiration and therefore lose all value.

The options, originally granted on May 11, 1998 for 700,000 shares with a pre-split strike price of $34.69 per share, were part of Mr. Schwabs 1998 long-term incentive compensation.

Over the ten years of the vesting and exercise period Schwab stock experienced three splits (3 for 2 in December 1998, 2 for 1 in July 1999, and 3 for 2 in May 2000). The split adjusted strike price was $7.35. The return on Schwab stock during the ten-year period exceeded 200% including reinvestment of dividends.

The shares acquired via the exercised options were immediately sold as part of Mr. Schwabs long-standing practice of periodically selling shares for personal financial management purposes. On the net proceeds of approximately $48 million, estimated Federal and State taxes are approximately $22 million, or about 47%.

The shares sold constituted less than 1.6 percent of Mr. Schwabs current beneficially owned holdings of Charles Schwab Corporation stock. After the sale of the options, Mr. Schwab beneficially owns approximately 208 million shares of The Charles Schwab Corporation, approximately 18.0 percent of outstanding shares.

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.2 million client brokerage accounts, 1.3 million corporate retirement plan participants, 318,000 banking accounts, and $1.4 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Schwab Institutional division. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at www.schwab.com.

Contact:

Charles Schwab
Greg Gable, 415-636-5847 (Media)
Rich Fowler, 415-636-9869 (Investors/Analysts)

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