E*Trade earnings jump in 2006

Total net revenue for the fourth quarter increased to $628.8 million from $478.9 million a year ago. Net operating interest income after provision for loan losses for the quarter increased to $363.5 million - representing 58 percent of total net revenue. The Company's record net operating interest income was the combined result of a 39 percent increase in enterprise interest-earning assets and a 28 basis point increase in enterprise net interest spread compared to the year ago period. Non-interest income increased to $265.3 million from $236.7 million in the year ago period. For the year ended December 31, 2006, the Company reported record net income of $628.9 million, or $1.44 per share, on total net revenue of $2.4 billion. Excluding previously reported acquisition-related integration expenses, the Company earned $1.49 per share(1). This compares to net income of $430.4 million, or $1.12 per share, on total net revenue of $1.7 billion in 2005.

"In 2006 the Company delivered a fourth consecutive year of record results while successfully integrating two key acquisitions and strategically investing in product, service and marketing to strengthen the future performance of the franchise," said Mitchell H. Caplan, Chief Executive Officer, E*TRADE FINANCIAL Corporation. "As a result of this success, we enter 2007 ideally positioned to capitalize on the secular growth trends of the industry, and we will continue to seek out targeted investments to build stronger client relationships and drive broader product engagement in the US and abroad."

Other selected fourth quarter highlights:

• Received regulatory approvals required to complete balance sheet integration initiative
• Launched "Complete Savings Account" to broaden customer choices among cash management products
• Introduced industry-leading retail futures trading offering
• Launched new etrade.com prospective customer site to improve access to information and enhance product awareness
• Moved public listing to NASDAQ and changed ticker on common stock to ETFC
• Expanded branch network with the opening of locations in Ft. Lauderdale, FL; Scarsdale, NY; and Roseville, CA - increasing total branch locations to 24 nationwide
• Repurchased $40 million of common stock