E*TRADE Makes Strategic Investments in High Technology Companies
Allies Itself with Technology Innovators
PALO ALTO, Calif., July 14 /PRNewswire/ -- Reflecting its strategy to seek out qualified partners who can enhance its
product and service offering, E*TRADE Group, Inc. (Nasdaq: EGRP - news), a leading, branded popular destination Web
site for online investing services, announced today it has made a series of strategic investments in high technology companies
with which it does business and which represent some of the most innovative providers of Internet-based services.
''E*TRADE has made a significant commitment to identify and ally with innovative organizations who are leaders in their fields,
and who share our vision of providing the consumer with the convenience and control of Internet- based solutions,'' said
Christos M. Cotsakos, President and Chief Executive Officer of E*TRADE. ''As the Internet goes mainstream in the U.S. and
around the world, the investments we are announcing today will position E*TRADE as an innovative, full-service and
value-added technology and online financial services provider.'' Cotsakos credited E*TRADE's recently assembled Corporate
Development and New Ventures Group, headed by Stephen C. Richards, for identifying and successfully negotiating the
following E*TRADE strategic investments:
Digital Island
E*TRADE has concluded an agreement with Digital Island, the first global IP applications network for the digital economy. As
part of the agreement, E*TRADE has made a significant investment in Digital Island, and will benefit from continued and
expanded use of Digital Island's distributed-star network that E*TRADE is leveraging to distribute its product around the
globe. The agreement includes the use of Digital Island's fiber network, co-location of E*TRADE cashing servers at Digital
Island points of presence, and potential software development.
Critical Path
E*TRADE is among an initial group of venture capital and technology companies to provide Critical Path, a leading provider of
outsourced email services and infrastructure for Web portals, Internet service providers (ISPs), Web hosting companies, and
corporations, with investment capital to enhance its infrastructure, sales force and product line.
Critical Path also becomes the exclusive host of E*TRADE's web-based email system. By utilizing Critical Path's carrier-grade
technology, E*TRADE customers gain unprecedented levels of email performance as well as the benefit of Critical Path's
value-added business features such as POP3, IMAP, unified messaging services, spam filtering, virus protection, postmarking
and return receipt delivery.
Third Age
E*TRADE has entered into an exclusive alliance and sponsorship agreement with Third Age Media, producers of
ThirdAge.com, the most comprehensive source of content, community and commerce on the Web for active older adults. In
forming the alliance, E*TRADE has acquired a minority equity position in Third Age Media, Inc.
ThirdAge.com is focused on the aging of the baby boom generation as it transitions into an extended period of adulthood
coming to be known as the Third Age. E*TRADE's market research indicates the baby boom generation, the segment
representing the bulk of the American population, is an attractive demographic for conversion prospects to online investing.
About E*TRADE
A leading branded provider of online investing services, E*TRADE has established a popular destination Web site for
self-directed investors. The Company offers independent investors the convenience and control of automated stock, options,
and mutual funds order placement at low commission rates, along with a suite of value-added products and services that can be
personalized, including portfolio tracking, Java-based charting and quote applications, real-time market commentary and
analysis, news, and other information services.
Customers can access E*TRADE at etrade.com on the Internet as well as through WebTV; via Prodigy; via
AT&T Worldnet; via Microsoft Investor; by GO ETRADE on CompuServe; with the keyword ETRADE on America Online;
via personal digital assistant; and via the TELE*MASTER interactive telephone system. E*TRADE Securities, Inc. and its
parent company, E*TRADE Group, Inc., are headquartered in Palo Alto, Calif.
E*TRADE is a registered trademark of the Company. TELE*MASTER is a trademark of E*TRADE Securities, Inc. 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, seasonality, the development of new
products and services, the enhancement of existing products and services, competitive pressures, system failures, economic
conditions, changes in consumer behavior and the introduction of competing products having technological and/or other
advantages. Further information about these matters can be found in the information included in the annual report filed by the
Company with the SEC on Form 10-K and quarterly reports on Form 10-Q.
SOURCE: E*TRADE Group, Inc. |
