E*Trade Launches Advisory Service

Continuing to move aggressively to become more than just another online
brokerage, E*Trade Group Inc. launched a planning and advice product that
includes new financial forecasting tools and the ability to consult directly
with personal financial planners through Ernst & Young.

In another step on the road to becoming a full-service financial services
company, Menlo Park, Calif.-based E*Trade said its new
E*Trade Advisor product “combines personalized electronic and human advice
through a blended channel.”

“The launch of E*Trade Advisor is an historic moment for our company …,”
said Christos M. Cotsakos, chairman of the board and chief executive officer
of E*Trade. “As we once revolutionized the online trading and banking
industries, E*Trade continues to change the way people plan for their
future.”

The market has generally been applauding E*Trade’s efforts, and the six month
chart shows a doubling of the company’s stock price, from about $6 to over
$12.

Just last week the company’s banking subsidiary
received approval from regulators to acquire more than 30,000 accounts
with deposits currently valued at more than $1.7 billion from Chase Manhattan
Bank USA, National Association, a subsidiary of J.P. Morgan Chase & Co.

The new E*Trade Advisor service, which eventually will be made available to
all E*Trade customers, addresses financial planning needs and major life
events such as retirement and education savings. At launch the product is
available only to customers with a combined total of $100,000 in their
E*Trade accounts, and only to U.S. citizens.

After aggregating all of a customer’s online financial account data,
including those with E*Trade as well as with other financial services
companies, the service analyzes, forecasts and recommends personalized action
plans for long-term investing. Based on a customer’s personal information,
needs and risk tolerance, E*Trade Advisor is designed to make asset
allocation recommendations given an investor’s unique goals.

It also lets customers confer with a qualified Ernst & Young personal
financial planner. Financial arrangements of that alliance were not
disclosed.