Monday May 15, 8:35 am Eastern Time
Company Press Release
Web Street 'Clears' the Way for Global Expansion
Receives Final Regulatory Approval to Begin Self-Clearing July 3
-Furthers Company Goal to Achieve Seamless International Trading-
DEERFIELD, Ill.--(BUSINESS WIRE)--May 15, 2000-- Web Street, Inc., parent company of Web Street Securities, Inc., (NASDAQ: WEBS - news), a leading online brokerage firm, today announced final approval from the National Association of Securities Dealers (NASD) and the IRS to move its brokerage operations to a self-clearing environment. Web Street's self-clearing operations, which will allow the company to provide expanded trade execution and financial services to its customers, will commence on July 3rd, 2000.
Joseph J. Fox, Co-Chief Executive Officer of Web Street, commented, ``We have now received the necessary regulatory approvals for our move to self-clearing, and have the required infrastructure and personnel in place to effectively conduct these operations. Our vision for Web Street is to be a leading one-stop electronic financial service destination, and these approvals are truly a `win-win' situation for both our customers and our shareholders. We believe that our self-clearing operations will allow us to provide the best financial products and services in the online brokerage industry.''
Web Street's self-clearing operation will also advance the Company's plans to provide its clients in the United States with access to international securities trading, through its Unified Global Brokerage Accounts (UGBA) strategy. Web Street has already introduced trading of U.S. securities in Europe, Hong Kong and Latin America, through its partnerships with ConSors AG of Germany, SHKOnline of Hong Kong, CB Capitales of Chile and Landsbref, Ltd., of Iceland.
As a self-clearing brokerage firm, Web Street will offer its customers several new benefits, including after-hours trading, flexible margin rates and the Web Street Global Asset Manager. This account will provide a competitive rate of return on customers' free credit balances, and access to a choice of money market funds for re-investment. The Company's breadth of financial service offerings will also expand with customer credit and debit cards, in addition to automatic bill payment and free check writing services.
About Web Street
Web Street, Inc., based in Deerfield, Illinois provides online brokerage services to individual investors in the United States, Europe, Asia and Latin America, through its wholly-owned subsidiary, Web Street Securities, Inc., which was founded in 1996. Web Street was rated four stars by Barron's in 1998 and 1999, as well as ranked as one of the top 3 online brokers in March 1998 and March 1999 by SmartMoney. Web Street offers 24 hours a day customer service, low-price commissions, and real time account information via multiple channels - online, touch-tone telephone, person-to-person via telephone, and face-to-face onsite through its existing and future brick-and-mortar branches. For more information on the Company's products and services, visit us at www.webstreet.com or call us at 1-800-WEBTRADE.
Cautionary Note Regarding Forward-Looking Statements
This news release includes forward-looking statements that reflect Web Street's current expectations about its future results, performance, prospects and opportunities. These forward-looking statements include the statements above regarding the expected impact of the approval of self-clearing operations and regarding the expected benefits to the Company of becoming self-clearing. Web Street has tried to identify these forward-looking statements by using words such as ``may,'' ``will,'' ``expect,'' ``anticipate,'' ``believe,'' ``intend,'' and ``estimate'' and other similar expressions. These forward-looking statements are based on information currently available to Web Street and are subject to a number of risks, uncertainties and other factors that could cause Web Street's actual results, performance, prospects or opportunities in the remainder of 2000 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, Web Street's ability to establish and maintain international relationships and relationships with content providers, intense price and other competition among companies providing online financial services, Web Street's need to maintain and increase its customer accounts, Web Street's ability to obtain required regulatory approvals for and successfully implement self-clearing operations, volatility in the securities markets, Web Street's ability to develop and enhance its services and products, risk of system failures, and existing and future regulations affecting the online brokerage industry or the Internet generally. For further information about these and other risks, uncertainties and factors, that could affect Web Street's future results, performance, prospects and opportunities, please review the disclosure included under the caption ``Business-Risk Factors'' in Web Street's annual report on Form 10-K for the year ended December 31, 1999, as filed with the Securities and Exchange Commission. Except as required by the federal securities laws, Web Street undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this news release. |
