The
information in this free writing prospectus supplements the information
contained in, and should be read together with, the preliminary prospectus
supplement of Zions Bancorporation filed with the SEC on April 10, 2008
(including the base prospectus filed with the SEC on March 31, 2006 and the
documents incorporated by reference therein).
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FOR: ZIONS
BANCORPORATION
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Contact:
Clark Hinckley
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One
South Main, Suite 1500
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Tel:
(801) 524-4787
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Salt
Lake City, Utah
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April
XX, 2008
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Harris
H. Simmons
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Chairman/Chief
Executive Officer
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ZIONS
BANCORPORATION TO ISSUE NEW
EMPLOYEE
STOCK OPTION APPRECIATION
RIGHTS SECURITIES
(ESOARS™)
SALT LAKE
CITY, April XX, 2008 — Zions Bancorporation (NASDAQ: ZION) announced today that
it will conduct an auction of Employee Stock Option Appreciation Rights
Securities (ESOARS) in conjunction with the granting of new employee stock
options. ESOARS were developed by Zions to establish a market-based
method for valuing employee stock option grants that complies with the
Statement of Financial Accounting Standards No. 123R (FAS 123R). The SEC
Office of the Chief Accountant has informed Zions that the ESOARS instrument can
be used for FAS 123R purposes, and ESOARS were used in 2007 to estimate the
value of Zions’ option grant.
“We are
pleased to again use ESOARS to determine the value of the grant of our employee
stock options,” said W. David Hemingway, executive vice president at Zions. “We
continue to believe that a market-based valuation of employee stock options is
the best way in which to determine the value of these options.”
The Zions
board of directors is expected to approve a grant of employee stock options on
April 24, 2008. Zions plans to offer 180,000 ESOARS units in connection with
this grant. The offering is designed to establish an estimate of the fair value
of the grant of options that can then be used to determine compensation
expense. The auction will be held from 4:30 p.m. EDT, on April 24, 2008
until 12:00 p.m. EDT on April 25, 2008, and will automatically be extended if
any bid that would change the market-clearing price of ESOARS is received in the
final two minutes of the auction.
Additional
information about ESOARS can be found at www.esoars.com, by
calling 1-800-554-1688 or by sending an e-mail to ESOARS@zionsdirect.com. The
reference options will vest ratably over three years, have an exercise price
equal to the market closing price of Zions’ shares of common stock on April 24,
2008 and will expire on April 23, 2015.
Zions
Bancorporation is one of the nation’s premier financial services companies,
consisting of a collection of great banks in select high growth markets. Zions
operates its banking businesses under local management teams and community
identities through more than 500 offices in 10 Western and Southwestern states:
Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah
and Washington. The company is a national leader in Small Business
Administration lending and public finance advisory services. In addition, Zions
is included in the S&P 500 and NASDAQ Financial 100 indices. Investor
information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.
# # # # # # # # # # # #
Forward-Looking
Statements
In
addition to historical information, this free writing prospectus contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include
statements regarding the timing and benefits of the proposed auction. Such
statements encompass Zions Bancorporation’s beliefs, expectations, hopes or
intentions regarding future events. Words such as “expects,” “intends,”
“believes,” “anticipates,” “should,” “likely” and similar expressions identify
forward-looking statements. All forward-looking statements included in this
communication are made as of the date hereof and are based on information
available to Zions Bancorporation as of such date. Zions Bancorporation assumes
no obligation to update any forward-looking statement. Risk factors, cautionary
statements and other conditions which could cause actual results to differ from
management’s current expectations are contained in Zions Bancorporation’s
filings with the SEC, including the section of Zions Bancorporation’s
preliminary prospectus supplement dated April 10, 2008, entitled “Risk
Factors.”
Zions
Bancorporation has filed a registration statement (Registration Statement No.
333-132868, including a prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the prospectus dated
March 31, 2006 contained in that registration statement, the preliminary
prospectus supplement dated April 10, 2008 and other documents Zions
Bancorporation has filed with the SEC for more complete information about Zions
Bancorporation and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov.
Alternatively, Zions Bancorporation or a representative will arrange to send you
the prospectus and other documents Zions Bancorporation has filed with the SEC
if you request it by calling toll free 1-800-524-8875. You may also get these
documents at www.esoars.com.