E*TRADE's Mortgage Division Reports Strong Performance

E*TRADE Leverages Leading Online Mortgage Origination Platform to Drive

Long-Term Growth, Maximize Favorable Interest Rate Environment and Capitalize

On Current Refinance Boom



Apr 19, 2001, 01:00 ET from E*TRADE Group, Inc.

    MENLO PARK, Calif., April 19 /PRNewswire/ -- E*TRADE Group, Inc.
 (NYSE:   ET) announces the record-setting performance of LoansDirect, its
 recently acquired mortgage origination platform. As the refinance boom moves
 into its fourth month, LoansDirect continues to maintain its leadership
 position as one of the largest online retail mortgage lenders. By maximizing
 the favorable interest rate environment and capitalizing on the strength of
 E*TRADE's integrated financial services platform, LoansDirect has more than
 tripled its volume of loans and generated a volume increase of more than
 $600 million compared to the same quarter one year ago.
     Since closing the acquisition February 1, 2001, E*TRADE has been executing
 on its strategy of leveraging the mortgage origination platform to drive asset
 growth, diversify revenue, and create a key strategic differentiator in a
 competitive marketplace. Generating a large source of assets for
 E*TRADE Bank's portfolio, approximately 3,200 loans have been funded through
 LoansDirect since closing the acquisition, with another 2,000 loans in the
 pipeline. LoansDirect has also produced non-interest income of more than
 $9 million since the acquisition, through origination points, loan-related
 fees and gain on sale of loans. This revenue is estimated to continue at the
 rate of $5 to $6 million per month going forward.
     "Mortgage rates are at their lowest point in two years, and the refinance
 market is booming, as consumers are looking to save on interest expenses and
 build equity faster," said Mitchell H. Caplan, chief global banking and asset
 gathering officer of E*TRADE Group, Inc. "We're positioned to maximize this
 favorable interest rate environment and satisfy the tremendous demand through
 an online mortgage origination platform that is fast, easy and offers all the
 benefits of real-time interactive access. It's a strategic maneuver to enhance
 our value proposition through an expanded product offering, while improving
 profitability through increased interest income and diversified revenue
 streams."
     According to the Mortgage Bankers Association of America, an industry
 trade group, 59.5 percent of all mortgage applications during the last week in
 March represented refinances, up from 51 percent of mortgage applications the
 previous week. A year ago, when 30-year fixed-rate loans averaged 8.3 percent,
 refinances made up only 21 percent of all mortgage applications.
     Mortgages are currently the third most widely used financial service
 product on the Internet. Through an efficient and direct lending platform that
 is focused on customer needs, E*TRADE offers a full range of mortgage
 products, gaining another key competitive advantage in securing the core
 financial relationship with consumers and opening the door to expanded
 cross-sell opportunities to its growing customer base.
     Future areas of opportunity and enhanced profitability will continue to be
 realized in coming months. Particularly in the present environment, when
 consumers are seeking to capitalize on the value of their home, E*TRADE is
 preparing to launch home equity lines of credit, due before the end of the
 current quarter. In addition, the Company's research of its customer base and
 the marketplace at large indicates strong consumer demand for unique products
 that will leverage the many features of its integrated financial services
 platform. As a result, E*TRADE is also preparing to offer the pledged asset
 loan, allowing brokerage customer to use their portfolio of equities, without
 liquidating them, as collateral when purchasing a mortgage.
     The award winning LoansDirect platform surpassed more than
 300 other online mortgage lenders nationwide, ranking #1 in the customer
 confidence category by Gomez Advisors for two consecutive quarters and
 reaching the #2 position overall in Gomez Advisors Winter 2000 Internet
 Mortgage Scorecard(TM). The LoansDirect technology platform, which delivers
 such conveniences as rapid closing times, a fully automated inquiry,
 application and funding process, as well as some of the most competitive rates
 and closing costs in the industry, received a 5-star rating from Inside
 Mortgage Technology (IMT) and was selected as one of three Top Mortgage Web
 Sites in IMT's "Editor's Choice Award."
 
     About E*TRADE
     E*TRADE is a global leader in online personal financial services, offering
 value-added investing, banking and research features, premium customer service
 and a redundant, proprietary Stateless Architecture(R) infrastructure. In
 addition to the U.S., E*TRADE presently serves customers in Australia, Canada,
 Denmark, Hong Kong, Korea, Japan, New Zealand, Norway, South Africa, Sweden,
 and the U.K., through branded web sites. E*TRADE Securities, Incorporated
 (Member NASD/SIPC), and its parent company, E*TRADE Group, Inc., have offices
 in Northern California and in other major business centers in the U.S. and
 worldwide.
 
     About E*TRADE Bank
     E*TRADE Bank is a wholly-owned subsidiary of E*TRADE Group, Inc. Deposits
 at E*TRADE Bank are insured up to $100,000 by the FDIC. Based on FDIC data as
 of March 31, 2001, E*TRADE Bank is the nation's largest pure-play Internet
 bank and is the only pure-play Internet bank to be ranked among the top
 18 federally chartered U.S. savings banks based on both assets and deposits.
 E*TRADE Bank is affiliated with E*TRADE Access, Inc., now the largest
 off-premise ATM network in the U.S. and the third largest ATM network
 nationwide based on American Bankers Association Data as of July 27, 2000. As
 of March 31, 2001, E*TRADE Bank had over $12.0 billion in assets, more than
 $6.7 billion in deposits and over 404,000 customer accounts. E*TRADE Bank can
 be accessed at etradebank.com or 800-ETBANK-1.
 
     About LoansDirect
     LoansDirect is a branchless retail enterprise engaged in providing an
 array of mortgage products directly to consumers through a virtual loan
 origination platform and a dedicated proactive customer service team. A
 licensed mortgage banker in 47 states, the Company is a market leader known
 for low rates, simplicity, speed and certainty of delivery. The Company's
 integrated user interface consistently receives high marks for customer
 satisfaction achieving a top ranking by Gomez Advisors and Inside Mortgage
 Technology.
     The Company's executive team has over 45 years combined experience in the
 mortgage industry.
 
     NOTE:  E*TRADE, the E*TRADE logo, E*TRADE Bank 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 the company with the SEC on
 Form 10-K (including information under the caption "Risk Factors") and
 quarterly reports on Form 10-Q.
     E*TRADE Bank and E*TRADE Securities, Inc. are affiliated but separate
 companies. Investment products made available from E*TRADE Securities, Inc.
 are not insured by the FDIC, are not guaranteed deposits or obligation of
 E*TRADE Bank and are subject to investment risk, including loss of principal
 amount invested.
     System response and account access time may vary due to market conditions,
 trading volume, system performance and other factors.
 
     CONTACT:  Deborah Newman of E*TRADE Bank, 703-247-3702, or
 dnewman@etradebank.com.
 
 

SOURCE E*TRADE Group, Inc.
    MENLO PARK, Calif., April 19 /PRNewswire/ -- E*TRADE Group, Inc.
 (NYSE:   ET) announces the record-setting performance of LoansDirect, its
 recently acquired mortgage origination platform. As the refinance boom moves
 into its fourth month, LoansDirect continues to maintain its leadership
 position as one of the largest online retail mortgage lenders. By maximizing
 the favorable interest rate environment and capitalizing on the strength of
 E*TRADE's integrated financial services platform, LoansDirect has more than
 tripled its volume of loans and generated a volume increase of more than
 $600 million compared to the same quarter one year ago.
     Since closing the acquisition February 1, 2001, E*TRADE has been executing
 on its strategy of leveraging the mortgage origination platform to drive asset
 growth, diversify revenue, and create a key strategic differentiator in a
 competitive marketplace. Generating a large source of assets for
 E*TRADE Bank's portfolio, approximately 3,200 loans have been funded through
 LoansDirect since closing the acquisition, with another 2,000 loans in the
 pipeline. LoansDirect has also produced non-interest income of more than
 $9 million since the acquisition, through origination points, loan-related
 fees and gain on sale of loans. This revenue is estimated to continue at the
 rate of $5 to $6 million per month going forward.
     "Mortgage rates are at their lowest point in two years, and the refinance
 market is booming, as consumers are looking to save on interest expenses and
 build equity faster," said Mitchell H. Caplan, chief global banking and asset
 gathering officer of E*TRADE Group, Inc. "We're positioned to maximize this
 favorable interest rate environment and satisfy the tremendous demand through
 an online mortgage origination platform that is fast, easy and offers all the
 benefits of real-time interactive access. It's a strategic maneuver to enhance
 our value proposition through an expanded product offering, while improving
 profitability through increased interest income and diversified revenue
 streams."
     According to the Mortgage Bankers Association of America, an industry
 trade group, 59.5 percent of all mortgage applications during the last week in
 March represented refinances, up from 51 percent of mortgage applications the
 previous week. A year ago, when 30-year fixed-rate loans averaged 8.3 percent,
 refinances made up only 21 percent of all mortgage applications.
     Mortgages are currently the third most widely used financial service
 product on the Internet. Through an efficient and direct lending platform that
 is focused on customer needs, E*TRADE offers a full range of mortgage
 products, gaining another key competitive advantage in securing the core
 financial relationship with consumers and opening the door to expanded
 cross-sell opportunities to its growing customer base.
     Future areas of opportunity and enhanced profitability will continue to be
 realized in coming months. Particularly in the present environment, when
 consumers are seeking to capitalize on the value of their home, E*TRADE is
 preparing to launch home equity lines of credit, due before the end of the
 current quarter. In addition, the Company's research of its customer base and
 the marketplace at large indicates strong consumer demand for unique products
 that will leverage the many features of its integrated financial services
 platform. As a result, E*TRADE is also preparing to offer the pledged asset
 loan, allowing brokerage customer to use their portfolio of equities, without
 liquidating them, as collateral when purchasing a mortgage.
     The award winning LoansDirect platform surpassed more than
 300 other online mortgage lenders nationwide, ranking #1 in the customer
 confidence category by Gomez Advisors for two consecutive quarters and
 reaching the #2 position overall in Gomez Advisors Winter 2000 Internet
 Mortgage Scorecard(TM). The LoansDirect technology platform, which delivers
 such conveniences as rapid closing times, a fully automated inquiry,
 application and funding process, as well as some of the most competitive rates
 and closing costs in the industry, received a 5-star rating from Inside
 Mortgage Technology (IMT) and was selected as one of three Top Mortgage Web
 Sites in IMT's "Editor's Choice Award."
 
     About E*TRADE
     E*TRADE is a global leader in online personal financial services, offering
 value-added investing, banking and research features, premium customer service
 and a redundant, proprietary Stateless Architecture(R) infrastructure. In
 addition to the U.S., E*TRADE presently serves customers in Australia, Canada,
 Denmark, Hong Kong, Korea, Japan, New Zealand, Norway, South Africa, Sweden,
 and the U.K., through branded web sites. E*TRADE Securities, Incorporated
 (Member NASD/SIPC), and its parent company, E*TRADE Group, Inc., have offices
 in Northern California and in other major business centers in the U.S. and
 worldwide.
 
     About E*TRADE Bank
     E*TRADE Bank is a wholly-owned subsidiary of E*TRADE Group, Inc. Deposits
 at E*TRADE Bank are insured up to $100,000 by the FDIC. Based on FDIC data as
 of March 31, 2001, E*TRADE Bank is the nation's largest pure-play Internet
 bank and is the only pure-play Internet bank to be ranked among the top
 18 federally chartered U.S. savings banks based on both assets and deposits.
 E*TRADE Bank is affiliated with E*TRADE Access, Inc., now the largest
 off-premise ATM network in the U.S. and the third largest ATM network
 nationwide based on American Bankers Association Data as of July 27, 2000. As
 of March 31, 2001, E*TRADE Bank had over $12.0 billion in assets, more than
 $6.7 billion in deposits and over 404,000 customer accounts. E*TRADE Bank can
 be accessed at etradebank.com or 800-ETBANK-1.
 
     About LoansDirect
     LoansDirect is a branchless retail enterprise engaged in providing an
 array of mortgage products directly to consumers through a virtual loan
 origination platform and a dedicated proactive customer service team. A
 licensed mortgage banker in 47 states, the Company is a market leader known
 for low rates, simplicity, speed and certainty of delivery. The Company's
 integrated user interface consistently receives high marks for customer
 satisfaction achieving a top ranking by Gomez Advisors and Inside Mortgage
 Technology.
     The Company's executive team has over 45 years combined experience in the
 mortgage industry.
 
     NOTE:  E*TRADE, the E*TRADE logo, E*TRADE Bank 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 the company with the SEC on
 Form 10-K (including information under the caption "Risk Factors") and
 quarterly reports on Form 10-Q.
     E*TRADE Bank and E*TRADE Securities, Inc. are affiliated but separate
 companies. Investment products made available from E*TRADE Securities, Inc.
 are not insured by the FDIC, are not guaranteed deposits or obligation of
 E*TRADE Bank and are subject to investment risk, including loss of principal
 amount invested.
     System response and account access time may vary due to market conditions,
 trading volume, system performance and other factors.
 
     CONTACT:  Deborah Newman of E*TRADE Bank, 703-247-3702, or
 dnewman@etradebank.com.
 
 SOURCE  E*TRADE Group, Inc.