E*TRADE Acquires TIR Holdings to Advance Cross-Border Trading Capabilities

Acquisition Adds Critical Element in Drive to Develop First Online Global

Trading Network



Jul 13, 1999, 01:00 ET from E*TRADE Group Inc.

    MENLO PARK, Calif., July 13 /PRNewswire/ -- E*TRADE(R) Group Inc.
 (Nasdaq:   EGRP) today announced it has signed a definitive agreement to acquire
 TIR Holdings Limited, an international financial services company offering
 global multi-currency securities execution and settlement services, and a
 leader in providing independent research to institutional investors.  The
 acquisition is expected to accelerate E*TRADE's goal of building the first
 global cross-border trading network for online investors, making trading in
 foreign securities accessible to retail, corporate and institutional investors
 alike.
     TIR shareholders will receive E*TRADE common stock valued at approximately
 $122 million in a transaction that is anticipated to be accounted for as a
 pooling of interests.  E*TRADE expects the transaction to be accretive to
 earnings.  Additionally, TIR's annual revenues, which were approximately $100
 million for the 12 months ended April 30, 1999, will significantly diversify
 E*TRADE's revenue base.
     With more than 600 institutional clients, TIR is active in equity, fixed
 income and currency markets in more than 35 countries and holds seats on
 multiple stock exchanges around the world.  E*TRADE intends to overlay its
 technology architecture on the TIR network as part of a longer term strategy
 to deliver the automation and performance to international investors that
 customers experience today using E*TRADE-branded sites to buy and sell
 securities in their domestic markets.
     "Building the infrastructure for a global 24x7 business is central to
 E*TRADE's financial services strategy," said Christos M. Cotsakos, chairman
 and chief executive officer of E*TRADE.  "E*TRADE plans to deploy a highly
 automated, cross-border trading network by combining TIR's existing trading
 network, international expertise and research operations with E*TRADE's
 technology leadership and growing global brand."
     "The combination of TIR and E*TRADE will deliver significant value to our
 combined customer base," said Judy Balint, president of E*TRADE International.
 "TIR's existing base of institutional clients will benefit from the speed and
 cost-efficiencies associated with our planned all-electronic global trading
 network, and we are committed to continue the track record of exceptional
 service established by TIR over the last decade.  It is also planned that
 retail customers of E*TRADE-branded sites around the world will gain access to
 international markets -- something only available to institutions and high-net
 worth individuals until now."
     "We are pleased and excited to add our international expertise to one of
 the world's leading online financial services providers," said Hans Tiedemann,
 chairman of TIR.  "We see great synergies for our products and services, and
 great benefits to our current institutional client base, and the broader
 market of retail and corporate investors who are constantly seeking increased
 access to international markets."
 
 
     Global Expansion
     E*TRADE is aggressively pursuing a global expansion strategy that
 leverages its internationally recognized brand name, award-winning web site
 design and proprietary Stateless Architecture(SM) technology platform through
 joint ventures and affiliate partners around the world.  E*TRADE plans to
 launch branded web sites in the top 20 financial markets worldwide.  To date,
 E*TRADE has introduced self-directed online investing through the launch of
 E*TRADE Australia (which also serves New Zealand), E*TRADE Canada, CPR-E*TRADE
 (France) and E*TRADE Sweden.  E*TRADE and local joint venture partners expect
 to bring the E*TRADE UK and E*TRADE Japan web sites online within fiscal 1999,
 which ends Sept. 30, 1999.
     In addition to developing domestic web-based investing services with
 affiliate partners worldwide, E*TRADE intends to build a global electronic
 network that will allow these investors to trade across borders.  The first
 phase of E*TRADE's electronic trading network will enable inbound cross-border
 trading from international affiliates to the U.S. markets.  E*TRADE expects
 the first E*TRADE affiliates to begin U.S. inbound cross-border trading during
 the next 12 months.
     "Integration of E*TRADE technology, with leveraged international financial
 services relationships and content, is key to our long-term vision for the
 company," said Balint.  "TIR brings the cross-border financial services
 process expertise that will aid in achieving the ultimate goal of
 straight-through processing of a wide range of transaction types."
     "An advanced trading network offering straight-through processing of
 international trades is fully in line with the future requirements of our
 market," said Jarrett Lilien, group chief executive officer of TIR.  "By
 joining E*TRADE, TIR is better positioned than ever to meet the needs of our
 institutional customers."
     Added Nicholas Bullman, group president of TIR, "E*TRADE is a world leader
 in applying the Internet to the financial services industry.  We believe an
 Internet-based solution will offer tremendous advantages for our clients and
 represent another important reason institutional investors choose TIR for
 their clearing, settlement and execution services."
 
     Additional TIR Synergies
     TIR brings a range of other synergies and benefits to E*TRADE, among them
 the ability to generate new revenue from global execution, clearing and
 settlement and a broader base of products that customers are expected to find
 attractive based on varying market conditions.
     TIR's independent research practice is another component of value in the
 acquisition.  TIR acquires research through independent analyst relationships.
 Traditionally available only to institutional investors, this high quality
 research eventually will be offered through E*TRADE-branded sites worldwide as
 both value-added and for-sale research products.
     TIR's research and analysis products and services are expected to advance
 E*TRADE's strategy of providing the highest quality research, news and
 information services to its customers, complementing analysis, news and
 information delivered through other E*TRADE partners, including Banc Boston
 Robertson Stephens, Reuters, TheStreet.com, BigCharts and others.
 
     Time Table and Milestones
     The acquisition is subject to the approval of various international
 regulators, including U.S. regulators, as a result of TIR's presence in a
 number of countries and E*TRADE's regulatory responsibilities in the United
 States.  Regulatory notification and approval of this acquisition is expected
 to be completed later this summer and full integration of TIR's network,
 products and services is expected to be completed in the next 12 months.
 E*TRADE's overall globalization strategy and related technology development
 plans represent a complex undertaking that is expected to take several years
 to complete.  As part of the definitive acquisition agreement, E*TRADE has
 reserved the right to terminate the transaction in the event that its common
 stock price is, at the time of closing, below an acceptable level.  Donaldson,
 Lufkin & Jenrette acted as financial advisor to TIR Securities in this
 transaction.
 
 
     About E*TRADE
     E*TRADE, a global leader in online personal financial services, has
 emerged as the world's most-visited online investing site.  The content-rich
 Destination E*TRADE web site offers value-added investing and research
 features, premium customer service and a fully redundant, proprietary
 Stateless Architecture(SM) infrastructure.  E*TRADE intends to expand its
 global positioning by launching branded web sites in the top 20 financial
 markets worldwide.
     In recognition of its innovation and industry leadership, E*TRADE was
 ranked the best online brokerage by Gomez Advisors (Summer 1999) and Lafferty
 Information and Research Group (4Q98, 1Q99).  E*TRADE also was the first
 securities and financial services company to be awarded the WebTrust seal of
 assurance by the American Institute of Certified Public Accountants (AICPA).
     E*TRADE is committed to providing the most comprehensive financial
 services experience on the Internet, as demonstrated by its acquisition of
 Clearstation.com, a community-based financial analysis site, as well as
 strategic investments in E*OFFERING, a full-service online investment bank,
 and Archipelago, a leading Electronic Communications Network (ECN).  E*TRADE
 also is positioned to become the first pure-play e-commerce company in the
 financial services sector -- combining online banking and brokerage services
 -- through a definitive merger agreement with Telebanc, the nation's leading
 branchless bank.  It is anticipated that the Telebanc merger will close this
 fall.
     E*TRADE Securities Inc. (Member NASD/SIPC), and its parent company,
 E*TRADE Group Inc., are headquartered in Menlo Park, Calif.
 
     About TIR Securities
     TIR Securities (TIR) is an independent brokerage organization with a
 worldwide presence that offers a range of financial services and products
 through its global multi-currency execution and settlement infrastructure.
 Since its establishment in 1988, TIR has combined the traditional strengths of
 an international broker with an innovative approach resulting in reduced
 costs, enhanced efficiency and maximized responsiveness to its institutional
 client base.
     A key element of TIR's success is its international distribution
 capability.  Low overhead, operational efficiency and a strong presence in
 worldwide financial centers enable TIR to provide low-cost, high-quality
 executions in over 35 countries. TIR has established a global infrastructure
 with dealing offices in Hong Kong, London, Melbourne, Manila, New York and
 Tokyo.  In addition, TIR has representative offices in Frankfurt, Geneva and
 Paris.  The administrative Head Office based in Dublin is part of the
 International Financial Services Centre (IFSC).
     Global infrastructure designed to provide a strong presence in each
 region, combined with expert local knowledge, ensures high quality of
 execution across a range of financial instruments, including equities, fixed
 income, and foreign exchange.  With over 600 institutional clients worldwide,
 TIR is well established as a responsive and innovative provider of brokerage
 services.
 
     Important Notice
     E*TRADE is a registered trademark of the company.  All other trademarks
 are properties of their respective owners.  The statements contained in this
 news release that are forward-looking are based on current expectations that
 are subject to a number of uncertainties and risks, and actual results may
 differ materially.  The uncertainties and risks include, but are not limited
 to, changes in market activity, market acceptance of the new E*TRADE
 destination web site, anticipated increases in the rate of new customer
 acquisition, the conversion of new visitors to the site to customers,
 seasonality, the development of new products and services, the enhancement of
 existing products and services, competitive pressures (including price
 competition), system failures or interruptions, economic and political
 conditions, changes in consumer behavior and the introduction of competing
 products having technological and/or other advantages.  Further information
 about these risks and uncertainties can be found in the information included
 in the annual report filed by the Company with the SEC on Form 10-K (including
 information under the caption "Risk Factors") and quarterly reports on Form
 10-Q.
 
     CONTACT:  media, Tim Alban, 650-331-5865, or talban@etrade.com, or
 investors, Susan Wolfrom, 650-331-5303, or swolfrom@etrade.com, both of
 E*TRADE; or Greg Xenakis of Neale-May & Partners, 650-328-5555, ext. 142, or
 gxenakis@nealemay.com, for E*TRADE.
 
 

SOURCE E*TRADE Group Inc.
    MENLO PARK, Calif., July 13 /PRNewswire/ -- E*TRADE(R) Group Inc.
 (Nasdaq:   EGRP) today announced it has signed a definitive agreement to acquire
 TIR Holdings Limited, an international financial services company offering
 global multi-currency securities execution and settlement services, and a
 leader in providing independent research to institutional investors.  The
 acquisition is expected to accelerate E*TRADE's goal of building the first
 global cross-border trading network for online investors, making trading in
 foreign securities accessible to retail, corporate and institutional investors
 alike.
     TIR shareholders will receive E*TRADE common stock valued at approximately
 $122 million in a transaction that is anticipated to be accounted for as a
 pooling of interests.  E*TRADE expects the transaction to be accretive to
 earnings.  Additionally, TIR's annual revenues, which were approximately $100
 million for the 12 months ended April 30, 1999, will significantly diversify
 E*TRADE's revenue base.
     With more than 600 institutional clients, TIR is active in equity, fixed
 income and currency markets in more than 35 countries and holds seats on
 multiple stock exchanges around the world.  E*TRADE intends to overlay its
 technology architecture on the TIR network as part of a longer term strategy
 to deliver the automation and performance to international investors that
 customers experience today using E*TRADE-branded sites to buy and sell
 securities in their domestic markets.
     "Building the infrastructure for a global 24x7 business is central to
 E*TRADE's financial services strategy," said Christos M. Cotsakos, chairman
 and chief executive officer of E*TRADE.  "E*TRADE plans to deploy a highly
 automated, cross-border trading network by combining TIR's existing trading
 network, international expertise and research operations with E*TRADE's
 technology leadership and growing global brand."
     "The combination of TIR and E*TRADE will deliver significant value to our
 combined customer base," said Judy Balint, president of E*TRADE International.
 "TIR's existing base of institutional clients will benefit from the speed and
 cost-efficiencies associated with our planned all-electronic global trading
 network, and we are committed to continue the track record of exceptional
 service established by TIR over the last decade.  It is also planned that
 retail customers of E*TRADE-branded sites around the world will gain access to
 international markets -- something only available to institutions and high-net
 worth individuals until now."
     "We are pleased and excited to add our international expertise to one of
 the world's leading online financial services providers," said Hans Tiedemann,
 chairman of TIR.  "We see great synergies for our products and services, and
 great benefits to our current institutional client base, and the broader
 market of retail and corporate investors who are constantly seeking increased
 access to international markets."
 
 
     Global Expansion
     E*TRADE is aggressively pursuing a global expansion strategy that
 leverages its internationally recognized brand name, award-winning web site
 design and proprietary Stateless Architecture(SM) technology platform through
 joint ventures and affiliate partners around the world.  E*TRADE plans to
 launch branded web sites in the top 20 financial markets worldwide.  To date,
 E*TRADE has introduced self-directed online investing through the launch of
 E*TRADE Australia (which also serves New Zealand), E*TRADE Canada, CPR-E*TRADE
 (France) and E*TRADE Sweden.  E*TRADE and local joint venture partners expect
 to bring the E*TRADE UK and E*TRADE Japan web sites online within fiscal 1999,
 which ends Sept. 30, 1999.
     In addition to developing domestic web-based investing services with
 affiliate partners worldwide, E*TRADE intends to build a global electronic
 network that will allow these investors to trade across borders.  The first
 phase of E*TRADE's electronic trading network will enable inbound cross-border
 trading from international affiliates to the U.S. markets.  E*TRADE expects
 the first E*TRADE affiliates to begin U.S. inbound cross-border trading during
 the next 12 months.
     "Integration of E*TRADE technology, with leveraged international financial
 services relationships and content, is key to our long-term vision for the
 company," said Balint.  "TIR brings the cross-border financial services
 process expertise that will aid in achieving the ultimate goal of
 straight-through processing of a wide range of transaction types."
     "An advanced trading network offering straight-through processing of
 international trades is fully in line with the future requirements of our
 market," said Jarrett Lilien, group chief executive officer of TIR.  "By
 joining E*TRADE, TIR is better positioned than ever to meet the needs of our
 institutional customers."
     Added Nicholas Bullman, group president of TIR, "E*TRADE is a world leader
 in applying the Internet to the financial services industry.  We believe an
 Internet-based solution will offer tremendous advantages for our clients and
 represent another important reason institutional investors choose TIR for
 their clearing, settlement and execution services."
 
     Additional TIR Synergies
     TIR brings a range of other synergies and benefits to E*TRADE, among them
 the ability to generate new revenue from global execution, clearing and
 settlement and a broader base of products that customers are expected to find
 attractive based on varying market conditions.
     TIR's independent research practice is another component of value in the
 acquisition.  TIR acquires research through independent analyst relationships.
 Traditionally available only to institutional investors, this high quality
 research eventually will be offered through E*TRADE-branded sites worldwide as
 both value-added and for-sale research products.
     TIR's research and analysis products and services are expected to advance
 E*TRADE's strategy of providing the highest quality research, news and
 information services to its customers, complementing analysis, news and
 information delivered through other E*TRADE partners, including Banc Boston
 Robertson Stephens, Reuters, TheStreet.com, BigCharts and others.
 
     Time Table and Milestones
     The acquisition is subject to the approval of various international
 regulators, including U.S. regulators, as a result of TIR's presence in a
 number of countries and E*TRADE's regulatory responsibilities in the United
 States.  Regulatory notification and approval of this acquisition is expected
 to be completed later this summer and full integration of TIR's network,
 products and services is expected to be completed in the next 12 months.
 E*TRADE's overall globalization strategy and related technology development
 plans represent a complex undertaking that is expected to take several years
 to complete.  As part of the definitive acquisition agreement, E*TRADE has
 reserved the right to terminate the transaction in the event that its common
 stock price is, at the time of closing, below an acceptable level.  Donaldson,
 Lufkin & Jenrette acted as financial advisor to TIR Securities in this
 transaction.
 
 
     About E*TRADE
     E*TRADE, a global leader in online personal financial services, has
 emerged as the world's most-visited online investing site.  The content-rich
 Destination E*TRADE web site offers value-added investing and research
 features, premium customer service and a fully redundant, proprietary
 Stateless Architecture(SM) infrastructure.  E*TRADE intends to expand its
 global positioning by launching branded web sites in the top 20 financial
 markets worldwide.
     In recognition of its innovation and industry leadership, E*TRADE was
 ranked the best online brokerage by Gomez Advisors (Summer 1999) and Lafferty
 Information and Research Group (4Q98, 1Q99).  E*TRADE also was the first
 securities and financial services company to be awarded the WebTrust seal of
 assurance by the American Institute of Certified Public Accountants (AICPA).
     E*TRADE is committed to providing the most comprehensive financial
 services experience on the Internet, as demonstrated by its acquisition of
 Clearstation.com, a community-based financial analysis site, as well as
 strategic investments in E*OFFERING, a full-service online investment bank,
 and Archipelago, a leading Electronic Communications Network (ECN).  E*TRADE
 also is positioned to become the first pure-play e-commerce company in the
 financial services sector -- combining online banking and brokerage services
 -- through a definitive merger agreement with Telebanc, the nation's leading
 branchless bank.  It is anticipated that the Telebanc merger will close this
 fall.
     E*TRADE Securities Inc. (Member NASD/SIPC), and its parent company,
 E*TRADE Group Inc., are headquartered in Menlo Park, Calif.
 
     About TIR Securities
     TIR Securities (TIR) is an independent brokerage organization with a
 worldwide presence that offers a range of financial services and products
 through its global multi-currency execution and settlement infrastructure.
 Since its establishment in 1988, TIR has combined the traditional strengths of
 an international broker with an innovative approach resulting in reduced
 costs, enhanced efficiency and maximized responsiveness to its institutional
 client base.
     A key element of TIR's success is its international distribution
 capability.  Low overhead, operational efficiency and a strong presence in
 worldwide financial centers enable TIR to provide low-cost, high-quality
 executions in over 35 countries. TIR has established a global infrastructure
 with dealing offices in Hong Kong, London, Melbourne, Manila, New York and
 Tokyo.  In addition, TIR has representative offices in Frankfurt, Geneva and
 Paris.  The administrative Head Office based in Dublin is part of the
 International Financial Services Centre (IFSC).
     Global infrastructure designed to provide a strong presence in each
 region, combined with expert local knowledge, ensures high quality of
 execution across a range of financial instruments, including equities, fixed
 income, and foreign exchange.  With over 600 institutional clients worldwide,
 TIR is well established as a responsive and innovative provider of brokerage
 services.
 
     Important Notice
     E*TRADE is a registered trademark of the company.  All other trademarks
 are properties of their respective owners.  The statements contained in this
 news release that are forward-looking are based on current expectations that
 are subject to a number of uncertainties and risks, and actual results may
 differ materially.  The uncertainties and risks include, but are not limited
 to, changes in market activity, market acceptance of the new E*TRADE
 destination web site, anticipated increases in the rate of new customer
 acquisition, the conversion of new visitors to the site to customers,
 seasonality, the development of new products and services, the enhancement of
 existing products and services, competitive pressures (including price
 competition), system failures or interruptions, economic and political
 conditions, changes in consumer behavior and the introduction of competing
 products having technological and/or other advantages.  Further information
 about these risks and uncertainties can be found in the information included
 in the annual report filed by the Company with the SEC on Form 10-K (including
 information under the caption "Risk Factors") and quarterly reports on Form
 10-Q.
 
     CONTACT:  media, Tim Alban, 650-331-5865, or talban@etrade.com, or
 investors, Susan Wolfrom, 650-331-5303, or swolfrom@etrade.com, both of
 E*TRADE; or Greg Xenakis of Neale-May & Partners, 650-328-5555, ext. 142, or
 gxenakis@nealemay.com, for E*TRADE.
 
 SOURCE  E*TRADE Group Inc.