News release from yahoo finance
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Monday August 23, 8:25 am Eastern Time
Company Press Release
SOURCE: E*TRADE Group Inc.
E*TRADE Makes Strategic Investment In LoanCity.com
E*TRADE Joins New Enterprise Associates (NEA) In Second Round Of
Funding For LoanCity.com
MENLO PARK, Calif., Aug. 23 /PRNewswire/ -- E*TRADE© Group Inc. (Nasdaq: EGRP -
news), today announced it has completed a strategic investment in LoanCity.com, the home loan
industry's first-ever end-to-end technology platform that connects consumers, mortgage brokers
and lenders through a centralized, electronic transaction platform and service center. Under the
agreement, E*TRADE assumes a minority stake in LoanCity.com, which also today announced
the launch of its new web hub. E*TRADE was the lead investor in LoanCity.com's second round
of funding, which raised a total of $10 million.
LoanCity.com, a technology-driven mortgage bank, currently does business with the country's top
tier lenders, which collectively service approximately 75 percent of all U.S. mortgages. The
company also provides mortgage brokers and their customers with quick, online access to more
than 50,000 competitively priced loan products.
``By investing in LoanCity.com, E*TRADE is supporting its broad mission of empowering
consumers to achieve their financial goals,' said Tom Bevilacqua, executive vice president of
corporate development and strategic investments for E*TRADE. ``There are great synergies
between our companies and we intend to explore a variety of avenues for enhancing our
relationship and leveraging our investment in LoanCity.com.'
``We are extremely excited about our strategic alliance with E*TRADE, one of the most dynamic
and innovative companies in the personal financial services arena,' said Rick Soukoulis, founder
and chief executive officer of LoanCity.com. ``We can't think of a better way to launch ourselves
to our target audience -- and the public at large -- than by aligning ourselves with such a
well-respected name among financial service consumers.'
About E*TRADE
E*TRADE, a global leader in online personal financial services, has emerged as the world's
most-visited online investing site. The content-rich Destination E*TRADE web site offers
value-added investing and research features, premium customer service and a fully redundant,
proprietary Stateless Architecture(SM) infrastructure. E*TRADE intends to expand its global
positioning by launching branded web sites in the top 20 financial markets worldwide.
In recognition of its innovation and industry leadership, E*TRADE was ranked the number one
online brokerage by Gomez Advisors (Summer 1999) and Lafferty Information and Research
Group (4Q98, 1Q99). E*TRADE was also the first securities and financial services company to
be awarded both the WebTrust seal of assurance by the American Institute of Certified Public
Accountants (AICPA) and the ``Trustmark' seal of approval from TRUSTe. E*TRADE is
committed to providing the most comprehensive financial services experience on the Internet, as
demonstrated by its acquisition of ClearStation.com, a community-based financial analysis site, as
well as strategic investments in E*OFFERING, a full-service online investment bank, and
Archipelago, a leading Electronic Communications Network (ECN). E*TRADE also is positioned
to become the first pure-play e-commerce company in the financial services sector -- combining
online banking and brokerage services -- through a definitive merger agreement with Telebanc, the
nation's leading branchless bank. It is anticipated that the Telebanc merger will close this fall. In
addition, E*TRADE is poised to become the first online global trading network with its recently
announced acquisition of TIR Holdings.
E*TRADE Securities Inc. (Member NASD/SIPC), and its parent company, E*TRADE Group
Inc., are headquartered in Menlo Park, Calif.
About LoanCity.com
LoanCity.com gives the mortgage industry its first-ever end-to-end technology solution for brokers
and consumers alike, combining the benefits of expert service and Internet technology. The
company provides mortgage brokers with a web-based transaction platform that exponentially
improves productivity and quality of service and makes them the resource of choice for mortgage
consumers. The company's proprietary loan search and transaction engine instantaneously
underwrites more than 50,000 different loan programs from the nation's top lending programs and
streamlines the application process. Consumers are provided with a powerful mortgage hub that
educates, empowers, and connects them to an elite group of brokers, ensuring the highly
personalized service and breadth of mortgage options that a standalone e-commerce solution
simply cannot deliver.
Headquartered in San Jose, Calif., LoanCity.com launched in August 1999. The company was
formerly known as America's Funding Source, founded in 1987.
Important Notice
E*TRADE is a registered trademark of the company. All other trademarks are properties of their
respective owners. 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, market acceptance of the new E*TRADE destination web site, 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
or interruptions, 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 report filed by the Company with the SEC on Form 10-K (including information under the
caption ``Risk Factors') and quarterly reports on Form 10-Q.
E*TRADE Media Contacts
Tim Alban
(650) 331-5865
talban@etrade.com
Greg Xenakis
Neale-May & Partners
(650) 328-5555, ext. 142
gxenakis@nealemay.com
SOURCE: E*TRADE Group Inc.
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