E*TRADE - Company Overview:

ETRADE Financial Corporation (Etrade) provides financial products and services toits customers. Etrade offers brokerage, banking and lending products, (primarilythrough electronic delivery channels), and serves retail, corporate and institutionalcustomers.Etrade's customers can move money electronically between brokerage,banking and lending accounts and have access to physical touch points (Etradefinancial centers) in selected cities. The company is headquartered in New York City,New York.

Etrade's net revenues for the year 2003 were $1,483.7 million, an increase of about12% over 2002. The increase in revenue was primarily due to a 30.4% increase in thenet banking revenues. The US represents Etrade's largest geographical market andit accounted for about 91.8% of the revenues in 2003.

ETrade offers internet based financial products and services. The company'sbusiness is divided into two segments: brokerage and banking.

ETrade offers internet based financial products and services. The company'sbusiness is divided into two segments: brokerage and banking.

The brokerage division produces revenues primarily from commissions and marginlending, and continues to be the primary point of introduction for the majority of ETrade's customers. The brokerage business is primarily comprised of ETRADESecurities, a registered broker-dealer, its securities clearing firm, ETRADE Clearing,Dempsey & Company, and GVR Company.

The brokerage group is further comprised of specialists and market-making firms,such as Engelman Securities, a registered broker-dealer, ETRADE ProfessionalTrading, and ETRADE Financial Corporate Services.

ETrade offers the following services: automated order placement and execution ofmarket, streaming quotes, advanced trading platforms for active traders; personalizedportfolio tracking; access to proprietary and non-proprietary mutual funds; futures,options and bond trading.

Furthermore, the brokerage business offers institutional customers with onlinebrokerage and financial services, as well as direct access to international exchangesthrough a web-based platform. The platform also offers ETrade's institutionalcustomers with real-time, online access to statements and electronic settlementcapabilities. A significant part of ETrade's institutional business is to provide itscustomers with access to third party research.

The banking division offers products and services through ETRADE Bank, which isone of the top ten largest Office of Thrift Supervision (OTS) in the US.

ETrade's banking division comprises of three subsidiaries: ETRADE MortgageCorporation, a direct-to-consumer mortgage loan originator; ETRADE ConsumerFinance Corporation, an originator of recreational vehicle (RV), marine and otherconsumer loans; ETRADE Global Asset Management, a registered broker-dealerand investment advisor that manages asset portfolios for the banking and thebrokerage segments.

The banking division offers a suite of consumer banking products and services, suchas interest-earning checking accounts, money market and savings accounts, sweepdeposit accounts (where cash that will be invested through ETRADE Securities isheld pending investment) and certificates of deposit. It also offers residentialmortgage loans, home equity loans and home equity lines of credit (HELOC) .

History of ETRADE

Etrade was incorporated in 1996 and went public in the same year. Etradecompleted a follow-on offering one year later.

During 2001, Etrade completed the acquisition of Web Street, parent company ofWeb Street Securities, an online brokerage firm with four physical locations in the US.The deal enabled Etrade to further expand in San Francisco, Boston, Beverly Hillsand Denver. A year later, Etrade established its market-making service, through itssubsidiary Etrade Institutional Securities, in the UK, with plans to further expand intoEurope to better serve its institutional and retail customers.

During 2003, Etrade Group changed its name to Etrade Financial Corporation.

In June 2004 the company sold ETRADE Access, it's ATM operations subsidiary, toCardtronics for $106 million cash.