News from CNW Group

ETRADE Financial Announces Portable Mortgage Offering

Monday, June 09, 2003

'Mortgage on the Move' Program Enables Consumers to Transfer Today's

Record-Low Portable Mortgage Rates to the Next House They Buy

MENLO PARK, Calif., June 9 /CNW/ -- ETRADE Group, Inc. (NYSE: ET) today announced that ETRADE Mortgage has launched its "Mortgage on the Move" program, enabling consumers to lock in today's low portable mortgage rates on a home loan and then transfer the rate to the next home they purchase, potentially saving thousands of dollars in interest. "Mortgage on the Move" is available for a limited time to borrowers across the United States.

"Industry experts predict that mortgage interest rates will rise significantly in the next several years," stated Robert Bernabe, head of Retail Mortgage Lending at ETRADE Financial. "This is the first time this concept will be widely available in the United States, giving consumers the ability to extend the benefit of today's record-low interest rates."

Arlen Gelbard, Chief Banking Officer and President, ETRADE Bank, added, "ETRADE Financial expects this program to drive overall purchase money product volume for ETRADE Mortgage. We are excited to be launching another product that aligns with our mission to take advantage of market conditions and pass increased value on to consumers."

With "Mortgage on the Move," borrowers secure a new purchase money mortgage loan at competitive interest rates. The program enables borrowers to transfer the terms of the loan to a new future residence, rather than paying off the existing loan and applying for a new loan at potentially higher market interest rates.

"This is an idea whose time has come," said John Burns, president of Irvine-based John Burns Real Estate Consulting Inc. "Though clearly beneficial to consumers, few mortgage companies have been able to pull off a portable mortgage in the United States. This era of declining rates and rising housing prices won't last forever. ETRADE Financial's offering is hitting the market at a time when mortgage interest rates are at record lows."

Additional program details are available by phone (toll free) at 800-470-0999 and on the Web at www.mortgageonthemove.com .

About ETRADE Financial

ETRADE Financial brings together a personalized and fully integrated financial services solution that includes brokerage, banking and lending. The products, services, content and information at ETRADE Financial are available to retail, institutional and corporate customers through the Web, ATMs, Centers, Relationship Managers and Call Centers. Securities products and services are offered by ETRADE Securities LLC (member NASD/SIPC), bank products and services are offered by ETRADE Bank (member FDIC), mortgages are offered by ETRADE Mortgage Corporation, and ETRADE Financial Advisor is a service of ETRADE Advisory Services, Inc., an investment adviser registered with the SEC.

Important Notice

ETRADE and the ETRADE logo are registered trademarks of ETRADE 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 ETRADE Group, Inc. with the SEC on Form 10-K (including information under the caption "Risk Factors") and quarterly reports on Form 10-Q.

CONTACT: Financial Media, Pam Erickson, +1-617-296-6080, pam.ericksonetrade.com, or Financial Investor Relations, Bryon McGregor, +1-916-463-2889, bryon.mcgregoretrade.com, both of ETRADE Group, Inc.

For further information: Financial Media, Pam Erickson, +1-617-296-6080, pam.erickson@etrade.com, or Financial Investor Relations, Bryon McGregor, +1-916-463-2889, bryon.mcgregor@etrade.com, both of ETRADE Group, Inc./

/Web site: http://www.etrade.com /

/Web site: http://www.mortgageonthemove.com