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

    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

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SOURCE  E*TRADE Group, Inc.
    -0-                              04/10/2002
    /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/
    /Company News On-Call:  http://www.prnewswire.com/comp/136683.html /
    /Web site:  http://www.etrade.com/
    (ET)