E*TRADE Financial to Acquire Tradescape, a Leading Onsite Active-Trading Platform, and Online Trading Technology From A.B. Watley for $105 Million

- Acquisitions Allow E*TRADE Financial to Further Strengthen

Diversification Strategy by Delivering Best of Breed in Onsite and

Online Technology for Active Traders

- Purchases Enhance and Leverage E*TRADE Financial Multi-touchpoint

Strategy

- Deal Will Be Immediately Accretive and Adds More Than 100,000 Trades

Per Day



Apr 10, 2002, 01:00 ET from E*TRADE Group, Inc.

    MENLO PARK, Calif., April 10 /PRNewswire-FirstCall/ -- E*TRADE Group, Inc.
 (NYSE:   ET) today announced a definitive agreement to acquire privately held
 Tradescape(1), a leading onsite active-trading platform, for $100 million in
 common stock.  Also announced today is the acquisition of online trading
 technology from A.B. Watley, valued at $5 million.  The combined acquisitions
 advance E*TRADE Financial's diversification strategy, enabling the Company to
 continue growing its leadership position within the active customer segment by
 providing active traders a superior value proposition through innovative
 onsite and online technology.
     Today's announcements allow a broader customer base to leverage E*TRADE
 Financial's many touchpoints, including its flagship E*TRADE Financial New
 York Center and the 20 Tradescape locations, providing active traders
 increased access to E*TRADE Financial's diversified offerings.  The Company's
 multi-touchpoint strategy combined with the newly acquired Tradescape
 technology platform, powered by LightSpeed(TM), will allow E*TRADE Financial
 to further enhance its Power E*TRADE offering for the active trader segment.
     "E*TRADE Financial is rigorously disciplined in the execution of our very
 focused business model and acquisition strategy.  It is based on finding those
 opportunities which are priced right for the marketplace and that add
 significant value to the Company, our shareowners and our stakeholders," said
 Christos M. Cotsakos, Chairman of the Board and Chief Executive Officer,
 E*TRADE Group, Inc.  "We have the currency and resources for selective,
 disciplined acquisitions, allowing us to look at all opportunities, but select
 only the best.  Through the strategic acquisitions of Tradescape and the
 A.B. Watley technology, at the right price and on the right terms, E*TRADE
 Financial is solidly positioning itself as a leading provider of active
 trading services."
     The online trading technology from A.B. Watley provides the data delivery
 and presentation layer portions that power parts of the Company's Power
 E*TRADE Pro product, giving E*TRADE the ability to independently manage all
 aspects of its Power E*TRADE offering.  This transaction, coupled with
 Tradescape, will enable E*TRADE Financial to provide its active customers with
 the best of breed in onsite and online technology as it continues to combine
 features to develop the best solution for active traders.
     "By acquiring enhanced product offerings and proprietary technologies, and
 by significantly increasing the number of transactions per day to over
 200,000, E*TRADE Financial continues to accelerate our vision of becoming a
 global leader in the delivery of innovative and integrated personalized
 financial services to meet the unique needs of customer households and
 specific market segments," continued Cotsakos.
     The Tradescape acquisition is expected to be slightly accretive to E*TRADE
 Financial earnings this year, within the Company's current 2002 guidance, with
 an expected accretion of up to 10 percent to 2003 earnings per share from
 ongoing operations, including any payments associated with the contingent
 consideration.
     The terms of the Tradescape deal include $100 million in common stock and
 additional contingent stock consideration of up to $180 million.  The
 additional contingent consideration will become payable on a pro-rated basis
 only if Tradescape business exceeds certain aggressive earnings targets and
 revenue goals for the remainder of 2002 and all of calendar year 2003.
     "Tradescape delivers incremental revenue at attractive margins and
 positions E*TRADE as a leader in daily average transactions," said Jarrett
 Lilien, Chief Brokerage Officer and Managing Director, Asia Pacific and Latin
 America, E*TRADE Group, Inc.  "The performance-driven contingent stock
 consideration helps to ensure the value proposition of the deal in accordance
 with our disciplined acquisition strategy.  Over a period of months, we have
 explored numerous alternatives and firmly concluded that the acquisition of
 Tradescape is the ideal choice."
     The Tradescape acquisition includes the purchase of Momentum Securities,
 LLC, an onsite brokerage firm for individual professional traders, Tradescape
 Securities, LLC, a direct access brokerage firm for active online traders and
 Tradescape Technologies' high-speed direct access trading software, technology
 and network services.  The acquisition does not include Market XT, which
 remains a subsidiary of Tradescape Corp.
     "E*TRADE Financial is the perfect home for Tradescape," said Omar Amanat,
 Chief Executive Officer, Tradescape.  "We are delighted to be joining such a
 fully integrated financial services provider that shares a similar philosophy
 of speed and excellence in trade execution.  We look forward to leveraging
 their professionalism and strong brand, while contributing expertise and
 technologies that will be key elements in growing this active trader customer
 segment going forward."
     Building on its efficient operating platform, the acquisition of these
 combined technologies provide E*TRADE Financial a powerful capability,
 delivering an increasingly dynamic real-time trading experience to its active
 traders.  By acquiring the ability to control its own future in the active
 market, E*TRADE Financial is well positioned to seize opportunities that make
 strategic sense for its customers, shareowners and stakeholders, while also
 reinforcing its commitment to driving future growth among our core business
 lines.
     The Tradescape transaction is subject to customary regulatory and closing
 conditions and is expected to be completed in the third quarter of 2002.  Each
 of the acquisitions will be discussed in further detail during the Company's
 upcoming first quarter 2002 earnings conference call scheduled for April 17,
 2002.
 
     About E*TRADE Financial
     E*TRADE Financial brings together a personalized and fully integrated
 financial services solution that includes investing, banking, lending,
 planning and advice.  Delivered in a multi-touchpoint platform, the products,
 services, content and information at E*TRADE Financial are available to
 customer households through E*TRADE Financial Centers, Zones, ATMs and branded
 web sites throughout the world.  Securities products and services are offered
 by E*TRADE Securities, Incorporated (member NASD/SIPC), bank products and
 services are offered by E*TRADE Bank (member FDIC), mortgages are offered by
 E*TRADE Mortgage Corp., and E*TRADE Financial Advisor is a service of E*TRADE
 Advisory Services, Inc., an investment adviser registered with the SEC.
 
     Important Notice
     E*TRADE, the E*TRADE logo and Stateless Architecture are registered
 trademarks of E*TRADE Group, Inc. or its subsidiaries. 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, 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, 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 E*TRADE Group, Inc. with the SEC on Form 10-K
 (including information under the caption "Risk Factors") and quarterly reports
 on Form 10-Q.
 
     (1)  The Tradescape acquisition includes the purchase of Momentum
 Securities, LLC, an onsite brokerage firm for individual professional traders,
 Tradescape Securities, LLC, a direct access brokerage firm for active online
 traders and Tradescape Technologies' high-speed direct access trading
 software, technology and network services. The acquisition does not include
 Market XT, which remains a subsidiary of Tradescape Corp.
 
     CONTACT:  E*TRADE Financial Media, Connie Dotson of E*TRADE Group, Inc.,
 +1-916-858-8835, or mediainq@etrade.com, or E*TRADE Financial Investor
 Relations, Robert Simmons of E*TRADE Group, Inc., +1-916-859-4004, or
 robert.simmons@etrade.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X72058811
 
 

SOURCE E*TRADE Group, Inc.
    MENLO PARK, Calif., April 10 /PRNewswire-FirstCall/ -- E*TRADE Group, Inc.
 (NYSE:   ET) today announced a definitive agreement to acquire privately held
 Tradescape(1), a leading onsite active-trading platform, for $100 million in
 common stock.  Also announced today is the acquisition of online trading
 technology from A.B. Watley, valued at $5 million.  The combined acquisitions
 advance E*TRADE Financial's diversification strategy, enabling the Company to
 continue growing its leadership position within the active customer segment by
 providing active traders a superior value proposition through innovative
 onsite and online technology.
     Today's announcements allow a broader customer base to leverage E*TRADE
 Financial's many touchpoints, including its flagship E*TRADE Financial New
 York Center and the 20 Tradescape locations, providing active traders
 increased access to E*TRADE Financial's diversified offerings.  The Company's
 multi-touchpoint strategy combined with the newly acquired Tradescape
 technology platform, powered by LightSpeed(TM), will allow E*TRADE Financial
 to further enhance its Power E*TRADE offering for the active trader segment.
     "E*TRADE Financial is rigorously disciplined in the execution of our very
 focused business model and acquisition strategy.  It is based on finding those
 opportunities which are priced right for the marketplace and that add
 significant value to the Company, our shareowners and our stakeholders," said
 Christos M. Cotsakos, Chairman of the Board and Chief Executive Officer,
 E*TRADE Group, Inc.  "We have the currency and resources for selective,
 disciplined acquisitions, allowing us to look at all opportunities, but select
 only the best.  Through the strategic acquisitions of Tradescape and the
 A.B. Watley technology, at the right price and on the right terms, E*TRADE
 Financial is solidly positioning itself as a leading provider of active
 trading services."
     The online trading technology from A.B. Watley provides the data delivery
 and presentation layer portions that power parts of the Company's Power
 E*TRADE Pro product, giving E*TRADE the ability to independently manage all
 aspects of its Power E*TRADE offering.  This transaction, coupled with
 Tradescape, will enable E*TRADE Financial to provide its active customers with
 the best of breed in onsite and online technology as it continues to combine
 features to develop the best solution for active traders.
     "By acquiring enhanced product offerings and proprietary technologies, and
 by significantly increasing the number of transactions per day to over
 200,000, E*TRADE Financial continues to accelerate our vision of becoming a
 global leader in the delivery of innovative and integrated personalized
 financial services to meet the unique needs of customer households and
 specific market segments," continued Cotsakos.
     The Tradescape acquisition is expected to be slightly accretive to E*TRADE
 Financial earnings this year, within the Company's current 2002 guidance, with
 an expected accretion of up to 10 percent to 2003 earnings per share from
 ongoing operations, including any payments associated with the contingent
 consideration.
     The terms of the Tradescape deal include $100 million in common stock and
 additional contingent stock consideration of up to $180 million.  The
 additional contingent consideration will become payable on a pro-rated basis
 only if Tradescape business exceeds certain aggressive earnings targets and
 revenue goals for the remainder of 2002 and all of calendar year 2003.
     "Tradescape delivers incremental revenue at attractive margins and
 positions E*TRADE as a leader in daily average transactions," said Jarrett
 Lilien, Chief Brokerage Officer and Managing Director, Asia Pacific and Latin
 America, E*TRADE Group, Inc.  "The performance-driven contingent stock
 consideration helps to ensure the value proposition of the deal in accordance
 with our disciplined acquisition strategy.  Over a period of months, we have
 explored numerous alternatives and firmly concluded that the acquisition of
 Tradescape is the ideal choice."
     The Tradescape acquisition includes the purchase of Momentum Securities,
 LLC, an onsite brokerage firm for individual professional traders, Tradescape
 Securities, LLC, a direct access brokerage firm for active online traders and
 Tradescape Technologies' high-speed direct access trading software, technology
 and network services.  The acquisition does not include Market XT, which
 remains a subsidiary of Tradescape Corp.
     "E*TRADE Financial is the perfect home for Tradescape," said Omar Amanat,
 Chief Executive Officer, Tradescape.  "We are delighted to be joining such a
 fully integrated financial services provider that shares a similar philosophy
 of speed and excellence in trade execution.  We look forward to leveraging
 their professionalism and strong brand, while contributing expertise and
 technologies that will be key elements in growing this active trader customer
 segment going forward."
     Building on its efficient operating platform, the acquisition of these
 combined technologies provide E*TRADE Financial a powerful capability,
 delivering an increasingly dynamic real-time trading experience to its active
 traders.  By acquiring the ability to control its own future in the active
 market, E*TRADE Financial is well positioned to seize opportunities that make
 strategic sense for its customers, shareowners and stakeholders, while also
 reinforcing its commitment to driving future growth among our core business
 lines.
     The Tradescape transaction is subject to customary regulatory and closing
 conditions and is expected to be completed in the third quarter of 2002.  Each
 of the acquisitions will be discussed in further detail during the Company's
 upcoming first quarter 2002 earnings conference call scheduled for April 17,
 2002.
 
     About E*TRADE Financial
     E*TRADE Financial brings together a personalized and fully integrated
 financial services solution that includes investing, banking, lending,
 planning and advice.  Delivered in a multi-touchpoint platform, the products,
 services, content and information at E*TRADE Financial are available to
 customer households through E*TRADE Financial Centers, Zones, ATMs and branded
 web sites throughout the world.  Securities products and services are offered
 by E*TRADE Securities, Incorporated (member NASD/SIPC), bank products and
 services are offered by E*TRADE Bank (member FDIC), mortgages are offered by
 E*TRADE Mortgage Corp., and E*TRADE Financial Advisor is a service of E*TRADE
 Advisory Services, Inc., an investment adviser registered with the SEC.
 
     Important Notice
     E*TRADE, the E*TRADE logo and Stateless Architecture are registered
 trademarks of E*TRADE Group, Inc. or its subsidiaries. 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, 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, 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 E*TRADE Group, Inc. with the SEC on Form 10-K
 (including information under the caption "Risk Factors") and quarterly reports
 on Form 10-Q.
 
     (1)  The Tradescape acquisition includes the purchase of Momentum
 Securities, LLC, an onsite brokerage firm for individual professional traders,
 Tradescape Securities, LLC, a direct access brokerage firm for active online
 traders and Tradescape Technologies' high-speed direct access trading
 software, technology and network services. The acquisition does not include
 Market XT, which remains a subsidiary of Tradescape Corp.
 
     CONTACT:  E*TRADE Financial Media, Connie Dotson of E*TRADE Group, Inc.,
 +1-916-858-8835, or mediainq@etrade.com, or E*TRADE Financial Investor
 Relations, Robert Simmons of E*TRADE Group, Inc., +1-916-859-4004, or
 robert.simmons@etrade.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X72058811
 
 SOURCE  E*TRADE Group, Inc.