TD Ameritrade Q2 profit up

The Company today announced the results of its second fiscal quarter, which closed Mar. 31, 2008 and includes earnings per diluted share of $0.31, up 35 percent over the same period a year ago.

The Company measures growth in the following ways:

Growth Indicators (year-over-year comparisons): (1)

• Spread-based asset balances of approximately $31 billion, an increase of seven percent
• Record fee-based balances of approximately $71 billion, an increase of 47 percent
• Average client trades per day of approximately 312,000, an increase of 23 percent
• Net new assets of approximately $7 billion, an increase of 156 percent, and $16 billion fiscal year-to-date

"We are pleased to see continued client engagement and traction in client asset growth, given the difficult market environment," said Joe Moglia, chief executive officer. "The investments we have made over the last year are enhancing our asset gathering capabilities and producing results. We're helping more of our clients become diversified and disciplined with the tools, guidance and service they need to make educated investment decisions in these markets."

Financial Indicators:(1)

• Net revenues of $623 million, 60 percent of which were asset-based
• Pre-tax income of $300 million, or 48 percent of net revenues
• Net income of $187 million, or $0.31 per diluted share
• EBITDA of $344 million, or 55 percent(2)
• Annualized return on average stockholders' equity of 30 percent for the quarter
• Client assets of approximately $306 billion, including $50 billion in client cash and money market funds

"We continue to deliver solid growth and profitability, evidenced by the strength we've demonstrated in each of our key financial performance areas," said Bill Gerber, chief financial officer. "Our balance sheet and cash generation abilities position us well for this type of environment. Continued conservative fiscal management and prudent internal investment decisions will help our growth continue in the second half of 2008."

Guidance Reaffirmed

The Company is reaffirming its 2008 Outlook with an earnings per share midpoint forecast of $1.32. More information is available via the Company's Outlook Statement, which is posted on www.amtd.com.

Business Highlights

TD AMERITRADE clients continue to ask for more objective guidance and easy-to-use investment tools to help them navigate complex, dynamic markets. Following are just a few of the Company's latest additions:

For Retail Clients:

• Bond Ladder - a complement to the Company's Bond Wizard tool. As more investors turn to fixed income instruments to diversify their portfolios and mitigate risk during volatile market conditions, a bond ladder, containing an assortment of bonds that mature at regular intervals, can help provide protection against interest rate changes and potentially help provide a reliable income stream. Clients can build their own ladder by searching for and selecting individual bonds and CDs using Bond Wizard, or they can select from a list of pre-packaged ladders.(3)
• The "Easy IRA" - a three-step process that combines the personalized analysis of WealthRuler with the objective guidance of third-party research to help investors open a maintenance fee-free IRA account in 15 minutes or less.
• The "Seminar Series" - a free educational opportunity for investors and traders of all experience levels to gain professional insight and develop investment strategies has expanded its line-up from 50 to 200 stops across the United States this year. The next events are scheduled for Monday, April 21, 2008, in San Diego, CA, and Troy, MI.

For Institutional Clients:

• TD AMERITRADE Institutional became one of the first custodians to formally commit to supporting the RIA industry, helping to publicize the fiduciary standard to which advisors are held.
• iRebal - Advisor rebalancing software provided by TD AMERITRADE, has a new tiered pricing structure that makes sophisticated across-account rebalancing even more accessible for high-end RIAs and their clients.(4)
• FundQuest - a new alliance that expands TD AMERITRADE's managed account offering, enabling advisors to develop client-specific recommendations for individual investors.

In addition, Tom Bradley, president of TD AMERITRADE Institutional, was named "Visionary of the Year" by Texas Tech University for his work in support of publicizing the fiduciary duty of RIAs to act in the best interest of their clients, as compared to broker obligations, and the continued need for disclosure of conflicts of interest.

(1) Results include assets acquired through the Company's purchase of a portion of Fiserv, Inc.'s investment support services business on Feb. 4, 2008, which added approximately $25 billion in total client assets, $1.2 billion of which were spread-based assets and $17.2 billion of which were fee-based investment balances. Spread-based asset balances include revenues earned from client margin balances, segregated cash, the TD Bank USA, N.A. Money Market Deposit Account (FDIC-Insured) balances, deposits paid on securities borrowing and other free cash and short-term investment balances. Fee-based assets include revenues earned from money market funds, mutual funds, Amerivest and AdvisorDirect. Net new assets consists of total client asset inflows, less total client asset outflows. Client asset inflows include interest and dividend payments and exclude changes in client assets due to market fluctuations. Net new assets are measured based on the market value of the assets as of the date of the inflows and outflows.

(2) See attached reconciliation of non-GAAP financial measures.
(3) Investments in fixed income products are subject to liquidity (or market) risk, interest rate risk (bonds ordinarily decline in price when interest rates rise and rise in price when interest rates fall), financial (or credit) risk, inflation (or purchasing power) risk and special tax liabilities.
(4) iRebal products and services are property of ThinkTech, Inc., an affiliate of TD AMERITRADE, Inc.
(5) TD AMERITRADE, Inc., member FINRA, receives clearing and custodial services from TD AMERITRADE Clearing, Inc., member FINRA/SIPC. TD Bank USA, N.A. and TD AMERITRADE are affiliated through their parent companies. Amerivest is an investment advisory service of Amerivest Investment Management, LLC, an SEC registered investment advisor. TD AMERITRADE, Inc., TD AMERITRADE Clearing, Inc. and Amerivest Investment Management, LLC are subsidiaries of TD AMERITRADE Holding Corporation. AdvisorDirect connects a prospective client with an independent financial advisor.
(6) More info on the Forbes award is available at forbes.com/platinum.

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