The excess electron in the dipole-bound state (DBS) of the anion is found to be recaptured into the excited valence orbital localized at the positive end of the dipole, leading to the chemical bond cleavage of the anion. In the DBS of the 4-iodophenoxide anion, the extremely loosely bound electron (binding energy of 53 cm(-1)) is recaptured into the pi sigma* valence orbital, which is repulsive along the C-I bond extension coordinate, leading to the iodide (I-) and phenoxyl diradical (center dot C6H4O center dot) channel at the asymptotic limit. This is the first real-time observation of the state-specific relaxation (other than autodetachment) dynamics of the DBS and subsequent chemical reaction. The lifetime of the 4-iodophenoxide DBS at its zero-point energy (ZPE), which is measured for the cryogenically cooled trapped anion using the picosecond laser pump-probe scheme, has been estimated to be similar to 9.5 +/- 0.3 ps. Quantum mechanical calculations support the efficient transition from the DBS (below the detachment threshold) to the low-lying ps* valence orbital of the first excited state of the anion. Similar experiments on 4-chlorophenoxide and 4-bromophenoxide anions indicate that the electron recaptures into excited valence orbitals hardly occur in the DBS of those anions, giving the long lifetimes (>> ns) at ZPE, suggesting that the internal conversion to S-0 may be the major relaxation pathway for those anions.