E*TRADE Japan Brings Online Investing To Japan As Brokerage Deregulation Takes Effect
E*TRADE And SOFTBANK Joint Venture Launches Sixth International E*TRADE-Branded Web Site As Part Of Global Expansion Strategy
MENLO PARK, Calif., Oct. 1 /PRNewswire/ -- E*TRADE© Group Inc. (Nasdaq: EGRP - news) and its joint venture partner, SOFTBANK Corp., today announced the launch of the E*TRADE Japan online financial services web site, located on the Internet at www.etrade.ne.jp. The new site -- the sixth E*TRADE-branded site to be launched outside the United States and the fourth this year -- coincides with today's deregulation of Japanese brokerage commission rates. The deregulation, which enables brokers to determine the commission structure for securities trades, and the launch of the content-rich E*TRADE Japan web site, present a wider range of online investing opportunities than previously available to Japanese investors.
Developed through the formation of E*TRADE Japan K.K. -- the joint venture company established between E*TRADE and SOFTBANK -- the new financial services web site launches with an already established customer base and customer service infrastructure through the acquisition of Osawa Securities, a Japanese brokerage. Following the acquisition, E*TRADE Japan created a call center to respond to customer inquiries, applications and trades. The call center has operated since April 1999.
``The introduction of E*TRADE-branded online investing in Japan is a significant step in both our global expansion strategy and our ultimate goal of establishing the world's first global, cross-border trading network,' said Judy Balint, president and chief operating officer of E*TRADE International. ``With the deregulation of brokerage commissions, we'll be able to offer Japanese investors not only one of the widest sets of online financial services and tools, but also the low commission advantages enjoyed by E*TRADE customers in other parts of the world.'
Initially, E*TRADE Japan will offer Japanese equities and mutual funds, delivering a rich set of localized financial services content, including:
-- News and quotes from Reuters (through E*TRADE's global agreement to
supply information and news products to E*TRADE-branded sites
worldwide)
-- Mutual fund reports from Morningstar Japan
-- A new E*TRADE-proprietary mutual fund search engine
-- Company reports from Toyo Keizai, one of Japan's leading corporate
information resources
The combination of aggressive E*TRADE pricing and premium financial services information and analysis tools will give Japanese consumers greater value and stimulate more proactive investment practices.
E*TRADE Japan is the fourth international E*TRADE-branded site to debut this year, following the July launch of E*TRADE UK, the June launch of E*TRADE Sweden and the March launch of CPR-E*TRADE (France). E*TRADE Australia (which also serves New Zealand) and E*TRADE Canada, launched in 1998 and 1997, respectively.
Market Opportunity
Japan's Internet market is the world's second largest after the United States, with more than 18 million users, according to a study by Nikkei NetBusiness. SOFTBANK expects this number to more than double to over 40 million by 2003. While nearly 38 percent of all financial assets held by U.S. households are invested in securities (U.S. Federal Reserve Board), only 11 percent of financial assets held by Japanese households are invested in stocks and mutual funds, according to the Economic Planning Agency of Japan.
In addition, the overhaul of the Japanese financial system, referred to locally as the ``Big Bang,' calls for the scheduled abolition of the securities transaction tax in 2001. Combined, these factors provide ample opportunity for growth in Japanese retail investing.
According to SOFTBANK executive vice president and E*TRADE Japan Chief Executive Officer Yoshitaka Kitao, ``We are pleased to be working with E*TRADE to bring a new level and quality of online investment services to the Japanese consumer. We expect to make substantial progress in the market during this time of expanding consumer demand for reasonably priced, highly accessible investment services.'
About E*TRADE
E*TRADE, a global leader in online personal financial services, is the world's most-visited online investing site, offering value-added investing and research features, premium customer service and a fully redundant, proprietary Stateless Architecture(SM) infrastructure. E*TRADE has continued to extend its customers' financial services experience through the acquisition of Clearstation.com, a community-based financial analysis site, and its pending merger with Telebank, the nation's leading branchless bank. E*TRADE is also expanding its value proposition through strategic investments in E*OFFERING, a full-service online investment bank, and Archipelago, a leading Electronic Communications Network (ECN).
E*TRADE plans to expand its global presence by launching branded web sites in the top 20 financial markets worldwide, and has taken a key step toward becoming the first online global trading network with its recently completed acquisition of TIR Holdings. E*TRADE presently has branded web sites in Japan, the UK, Sweden, France, Australia and Canada.
E*TRADE has been ranked the number one online brokerage by Gomez Advisors for four out of the last five quarters, Lafferty Information and Research Group, PC Magazine and Smart Computing magazine.
E*TRADE Securities Inc. (Member NASD/SIPC), and its parent company, E*TRADE Group Inc., have offices in Northern California and in other major business centers in the U.S. and worldwide.
About SOFTBANK
SOFTBANK CORP. has emerged as one of the world's leading Internet market forces. Through its ownership positions in more than 100 Internet companies and its unique Internet-zaibatsu management concept, it is able to create market synergies for its family of companies on a global scale. In Japan its activities encompass distribution, publishing, Internet media platforms, a broad range of electronic commerce businesses and joint ventures with companies such as Microsoft Corporation, Cisco Systems Inc., Yahoo! Inc., the National Association of Security Dealers Inc. and many other market leaders. In the U.S., SOFTBANK is the largest shareholder in leading Internet companies such as Yahoo! Inc., E*TRADE Group Inc. and ZDNet, and in Europe has established Internet joint ventures with News Corp and Vivid.
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 Destination E*TRADE 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, 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 Contact
Tim Alban
650-331-5865
talban@etrade.com
SOURCE: E*TRADE Group Inc.
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