Highlights from the third quarter 2007 included:

• Record revenues of $64.1 million, a 46% increase year-over-year
• Record net income of $25.3 million, or $0.40 per diluted share
• Record daily average revenue trades (DARTs) of 36,900, a 53% increase year-over-year
• Net new account growth of 12,500 during the quarter, resulting in 247,800 customer accounts, a 26% increase year-over-year
• Industry-leading 64.5% pre-tax margins
• $5.6 billion in customer assets on September 30, 2007, a 32% increase year-over-year

"Our strong results in the third quarter continued to validate our strategy of driving profitable growth by focusing on self-directed retail investors who use options and futures as part of their investing strategy," remarked David Fisher, Chief Executive Officer of optionsXpress. "New account growth climbed to its highest level in a year and customer assets were 32% higher than a year ago. We have seen steady improvement in our marketing over the last nine months and believe there is opportunity for additional gains."

For the third quarter, DARTs were 36,900, up 53% from 24,100 in the third quarter of 2006, and up 13% from 32,700 in the second quarter of 2007. Trades per account on an annualized basis were 38, up from 32 in the third quarter of 2006, and up from 36 in the second quarter of 2007. Net revenues increased 46% over the third quarter of 2006 and 8% over the second quarter of 2007. Resulting net income was $25.3 million, or $0.40 per share on a diluted basis, a 55% increase from $16.3 million in the third quarter of 2006.

"Heightened volatility in the market contributed to customer activity reaching its highest level in more than a year. In particular, with their ability to employ diverse strategies with options, our customers displayed resilience in September following a difficult market environment in August," commented Adam DeWitt, Chief Financial Officer of optionsXpress. "The increase in trading activity offset a lower average commission, which was impacted by the new rates on option spread trades that we introduced at the beginning of August."

During the quarter, optionsXpress announced a dividend of $0.0625 per share. The total amount of the dividend was approximately $3.9 million and was paid to shareholders on September 27, 2007.

Outlook

"While higher customer activity levels partly contributed to our record results, the critical long-term drivers of account growth and asset growth have gained momentum," noted David Fisher. "We continue to focus on product innovation, education, and delivering the best experience for investors and believe this will support the ever-evolving needs of our customers and can drive meaningful growth for optionsXpress. We expect to complete our integration of XpressTrade's full-featured futures platform during the fourth quarter, creating the industry's most robust web-based platform enabling customers to invest in options, stocks and over 100 futures products side-by-side."

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