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To: Dalin who wrote (8735)	10/4/1999 2:54:00 PM
From: Spytrdr	Read Replies (1) \| Respond to of 13953

Telebank Becomes First Pure-Play Internet Bank to Top $2 Billion in Deposits; Aggressive Marketing Program Drives Deposit Growth of Leading and Largest Internet Bank Business Editors ARLINGTON, Va.--(BUSINESS WIRE)--Oct. 4, 1999--Telebank (http://www.telebank.com), the nation's leading and largest pure-play Internet bank providing FDIC-insured products and value-added financial services via the Internet, announced today that it has crossed the threshold of $2 billion in customer deposits. By reaching this milestone, Telebank is the only pure-play Internet bank to advance into the top 40 U.S. federally chartered savings banks, based on Federal Deposit Insurance Corporation data. Telebank first broke into the top 50 federal savings banks in January of this year. "We continue to surpass industry expectations by crossing the threshold of $2 billion in deposits before September 30, 1999, up from $1.1 billion at year end 1998," said Mitchell H. Caplan, president and CEO of Telebank. "As a result of our strong growth, Telebank's deposit base is currently four times larger than all other pure-play Internet banks combined, and total customer accounts have reached nearly 100,000." With a ten year track record of successfully and securely serving a nationwide customer base, Telebank is poised to become the online bank of choice for a growing number of consumers who are demanding the convenience of the Internet. "Our aggressive marketing has effectively penetrated the consumer marketplace, attracting a diverse base of loyal and profitable customers. We've seen our deposits grow 108% and our accounts grow 107% over year ago levels. In the third quarter alone, net deposits grew $476 million and accounts have increased 28,000." Telebank's growth is indicative of a recent consumer trend in financial services. Online banking continues to penetrate an increasing number of U.S. households, while branch-based transactions continue to decline. A recent report by Piper Jaffray, Inc. predicts that the number of households banking online will more than quintuple from 4.4 million households in 1998 to over 25 million households by 2003, a compounded annual growth rate of more than 42% over the next five years. Setting the pace as a leader in the banking industry, Telebank created a branchless banking model in 1989, replacing brick-and-mortar branches with service through electronic delivery channels including the Internet, telephone, ATM and fax, to reduce operating costs and pass the savings back to consumers as premium rates in the top one percent nationally. Telebank has introduced True.net(TM) Checking which gives account holders the convenience of completing transactions, such as bill payments over the Internet, while paying yields higher than most other banks' savings accounts. Telebank's Internet checking account holders, with balances over $1,000, receive premium interest, free printed checks, free unlimited online bill payments, free Internet account access, a free ATM/Debit card and pay no monthly fees. Telebank is the nation's leading and largest pure-play Internet bank. Pending shareholder and regulatory approval, Telebank is positioned to become part of the first pure-play e-commerce company in the financial services sector -- combining banking and brokerage services -- through a definitive merger agreement with ETRADE, a global leader in online investing. Telebank is a wholly owned subsidiary of Telebanc Financial Corporation (Nasdaq:TBFC), providing high value financial products and services to customers in all 50 states through low-cost electronic delivery platforms, including the Internet, telephone, ATM and facsimile. Telebank has more than 97,000 accounts and $2.1 billion in deposits as of September 30, 1999. Telebank can be accessed at www.telebank.com or 1-800-TELEBANK. --30--pw/sf CONTACT: Golin/Harris International for Telebank Anita Sen or Kirsten Clausen, 213/623-4200 KEYWORD: VIRGINIA INDUSTRY KEYWORD: BANKING INTERACTIVE/MULTIMEDIA/INTERNET COMED PRODUCT Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com Oct-04-1999 10:22 GMT Symbols: US;TBFC Source BW Business Wire