Office of External Communications

Houston, TX 77204-5017 Fax; 713/743-8199

FOR IMMEDIATE RELEASE
September 9, 2004

UH Contact: Angie Joe
713/743-8153 (office)
713/617-7138 (pager)
ajoe@uh.edu

Compass Bank Contact: Ashley Wehrly
713/874-0121 (office)
713/252-6886 (cell)
ashley@fergusonwehrly.com

HOUSTON, Sept. 9, 2004 – Compass Bank has contributed a $1 million endowment to establish the Charles E. McMahen Chair in Accountancy & Taxation at the University of Houston’s Bauer College of Business. The contribution is the largest gift that Bauer College has received from a company on behalf of an alumnus. In addition, the university is conducting a national search to fill the chair, named for the Texas banker.

“In just four years, we’ve seen our accountancy and taxation enrollment increase by more than 200 percent. The McMahen Chair will help us attract a faculty member with outstanding qualifications and a prominent reputation to help lead those students,” said Arthur Warga, dean of the Bauer College of Business. “We are honored that Compass Bank is recognizing Charles for his commitment to Compass, the Houston community and the University of Houston with the establishment of this chair.”

McMahen began his career with Compass Bank in 1990 as chairman and chief executive officer of Compass Banks of Texas. In 1999, he was named vice chairman of Compass Bank, and in 2003 he was named to the Board of Directors as vice chairman of Compass Bancshares, Inc. McMahen retired from Compass Bank in December of 2003, but continues to serve as vice chairman on the Board of Directors of Compass Bancshares, Inc.

McMahen, who graduated from UH in 1962 with a bachelor’s of business administration in accounting, remains dedicated to the university. He was appointed by former Gov. Bush to the UH System Board of Regents, where he served from 1995-2001, and was chair from 1998-2000. He is the recipient of the Distinguished Alumnus Award from UH, and in 2002 he was awarded an Honorary Doctorate.

McMahen has been an active member of numerous civic organizations including the Greater Houston Partnership, Center for Houston’s Future, Houston International Festival, Houston Symphony, Society for the Performing Arts and the American Red Cross. Further, in 2001, he was appointed chair of the Governor’s Business Council by Gov. Perry.

“We are extremely proud to make this donation to UH on behalf of Charles and his outstanding service to Compass over the past 14 years,” said D. Paul Jones, Jr., Compass’ chairman and chief executive officer.
In addition to the $1 million gift for the Accounting Chair, McMahen has spearheaded more than $300,000 in Compass donations to UH. Additional beneficiaries include the Yates High School Outreach Initiative and the Bob Lanier Endowed Chair in Urban Public Policy.

“I am extremely pleased that my commitment to education will carry on through the accounting and taxation chair established at UH,” McMahen said. “It has always been my goal to blend education and business development in Texas, especially in Houston. This donation gives the Bauer College of Business another tool to use in helping students achieve their own goals of higher learning and developing skills to lead businesses in our community.”

About the Bauer College of Business
The C.T. Bauer College of Business has been in operation for more than 60 years at the University of Houston main campus. Through its five academic departments, the college offers a full-range of undergraduate, masters and doctoral degrees in business. The Bauer College is fully accredited by the Association to Advance Collegiate Schools of Business. In August 2000, Houston business leader and philanthropist Charles T. (Ted) Bauer endowed the College of Business with a $40 million gift. In recognition of his generosity, the college was renamed the C.T. Bauer College of Business.

About the University of Houston
The University of Houston, Texas’ premier metropolitan research and teaching institution, is home to more than 40 research centers and institutes and sponsors more than 300 partnerships with corporate, civic and governmental entities. UH, the most diverse research university in the country, stands at the forefront of education, research and service with more than 35,000 students.

About Compass Bank
Compass Bank is a subsidiary of Compass Bancshares, Inc., a Southwestern financial holding company with $28 billion in assets and 376 full-service banking offices in Alabama, Arizona, Colorado, Florida, New Mexico and Texas. Compass Bancshares is among the top 40 U.S. bank holding companies by asset size and ranks among the top earners of its size based upon return on equity. The company's earnings per share have increased for 16 consecutive years and dividends per share have increased for 23 consecutive years.

For more information about UH visit the university’s ‘Newsroom’ at www.uh.edu/admin/media/newsroom.