NEW YORK, Sept. 6 /PRNewswire-FirstCall/ -- E*TRADE FINANCIAL Corporation announced today that it proposes to offer $450 million of senior notes through a private placement. The Company intends to use substantially all of the net proceeds from this offering to fund the proposed acquisition of Harrisdirect from BMO Financial Group.

The notes have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, and unless so registered, may not be offered or sold in the United States, except pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, and applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy the notes. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933, as amended.

Important Notice

E*TRADE FINANCIAL and the E*TRADE FINANCIAL logo are registered trademarks or trademarks of E*TRADE FINANCIAL Corporation. 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 reports previously filed by E*TRADE Group, Inc. or E*TRADE FINANCIAL Corporation with the SEC on Form 10-K (including information under the caption "Risk Factors") and quarterly reports on Form 10-Q.

(C) 2005 E*TRADE FINANCIAL Corp. All rights reserved. E*TRADE FINANCIAL Media Contact Pam Erickson E*TRADE FINANCIAL Corporation 617-296-6080 pam.erickson@etrade.com E*TRADE FINANCIAL Investor Relations Contact Adam Townsend E*TRADE FINANCIAL Corporation 703-236-8719 adam.townsend@etrade.com

CONTACT: Media, Pam Ericksonm +1-617-296-6080 or
pam.erickson@etrade.com, or Investor Relations, Adam Townsend, +1-703-236-8719
or adam.townsend@etrade.com, both of E*TRADE FINANCIAL Corporation

Web site: http://www.etrade.com/