HOMETOWN BANCSHARES, INC.
                         SPECIAL MEETING OF STOCKHOLDERS
                                 March 13, 2003


                THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS

         The undersigned hereby appoints C. Ronald Clark and Robert E. Kleehamer
with full powers of substitution, to act as attorneys and proxies for the
undersigned, to vote all shares of common stock of Hometown Bancshares, Inc.
which the undersigned is entitled to vote at the special meeting of stockholders
to be held at the main office of Hometown National Bank, 3131 Grant Line Road,
New Albany, Indiana, on March 13, 2003, at 6:00 p.m., local time, and at any and
all adjournments of the special meeting, as follows:

         Approval of the Agreement and Plan of Merger dated as of September 25,
         2002 by and between First Capital, Inc. and Hometown Bankshares, Inc.,
         pursuant to which Hometown Bancshares, Inc. will merge with and into
         First Capital, Inc. and each share of common stock, no par value, of
         Hometown Bancshares, Inc. will be converted into the right to receive,
         at the election of the holder, either shares of common stock, par value
         $.01 per share, of First Capital, Inc. or cash, all on and subject to
         the conditions contained in the Agreement and Plan of Merger.


                      FOR          AGAINST          ABSTAIN
                      ---          -------          -------

                      [_]            [_]              [_]

         In their discretion, the proxies are authorized to vote on any other
business that may properly come before the special meeting or any adjournment or
postponement thereof.

                 THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR"
                  APPROVAL OF THE AGREEMENT AND PLAN OF MERGER.

         Should the undersigned be present and elect to vote in person at the
special meeting or at any adjournment of the special meeting and after
notification to the Secretary of Hometown Bancshares, Inc. at the special
meeting of the stockholder's decision to terminate this proxy, then the power of
said attorneys and proxies shall be deemed terminated and of no further force
and effect.

This proxy, properly signed and dated, will be voted as directed, but if no
instructions are specified this proxy will be voted for the approval of the
Agreement and Plan of Merger. Presently, the board of directors knows of no
other business to be presented at the special meeting.



         The undersigned acknowledges receipt from Hometown Bancshares, Inc.
before the execution of this proxy of the notice of special meeting of
stockholders and the proxy statement for the special meeting of stockholders.

Dated:_________________________



____________________________                ____________________________
PRINT NAME OF STOCKHOLDER                   PRINT NAME OF STOCKHOLDER



____________________________                ____________________________
SIGNATURE OF STOCKHOLDER                    SIGNATURE OF STOCKHOLDER


Please sign exactly as your name appears on this card. When signing as attorney,
executor, administrator, trustee or guardian, indicate your full title. If
shares are held jointly, only one registered holder need sign.


    PLEASE COMPLETE, DATE, SIGN AND PROMPTLY MAIL THIS PROXY IN THE ENCLOSED
                           POSTAGE-PREPAID ENVELOPE.