The sale resulted in approximately $515 million in after-tax net proceeds inclusive of the repatriation of capital prior to close and net of transaction fees. The transaction will result in a pre-tax book gain of approximately $425 million in the third quarter of 2008. Combined with the other planned non-core asset sales announced this year, E*TRADE will generate more than $700 million in proceeds in 2008.

"We continue to make solid progress against our 2008 Turnaround Plan by monetizing non-core assets to generate capital at low cost in a shareholder-friendly manner, while delivering consistent organic growth in the retail business," said Donald H. Layton, Chairman and Chief Executive Officer, E*TRADE FINANCIAL Corporation. "The sale of E*TRADE Canada helps to create a substantial capital cushion that we will be able to deploy as needed as we diligently execute against our plan to return our balance sheet to strength in this challenging market."

During the transition process, E*TRADE and Scotiabank are committed to maintaining the quality experience E*TRADE Canada customers have come to expect. Through the remainder of 2008 it will be business as usual for E*TRADE Canada customers, as E*TRADE Canada and Scotiabank work together to ensure a smooth transition.