Exclusively for E*TRADE Customers
New CD is First Banking Product from Recently
Announced Merger of E*TRADE and Telebanc
PALO ALTO, Calif., June 2 /PRNewswire/ -- E*TRADE(R) Group Inc.
(Nasdaq: EGRP) today announced the first banking product resulting from its
recently announced merger with the nation's largest online bank, Telebanc
(Nasdaq: TBFC) -- a 12-month, FDIC-insured certificate of deposit (CD) with an
annual percentage yield (APY) of 6.50 percent. The CD, issued by TeleBank
(Nasdaq: TBFC) and available exclusively to E*TRADE customers, provides a
12-month CD APY that is more than 50% higher than the current average offered
nationally by either an online or traditional, brick-and-mortar banking
institution. E*TRADE customers can take advantage of the CD offer through the
E*TRADE web site (www.etrade.com) or by calling (800) STOCKS-1.
"The introduction of the new high-yield CD to E*TRADE customers reflects
the type of high value banking products which will result from the merger
between E*TRADE and Telebanc," said Christo M. Cotsakos, chairman and CEO of
E*TRADE. "The new CD is just the first example of how the sustainable pricing
leverage we maintain over competitors will impact customers through a
value-added financial destination strategy. We intend to further enrich
customers through additional cash management products that continue to bring
added convenience, value and cost savings to customers."
E*TRADE customers can gain more information on the new CD through
co-branded E*TRADE and Telebank pages accessed via the Destination E*TRADE web
site, www.etrade.com.
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. In
addition, E*TRADE has a suite of value-added products and services that can be
personalized, including portfolio tracking, real-time stock quotes, Smart
Alerts, market commentary and analysis, news, investor community areas and
other information services.
E*TRADE was the first securities and financial services company to be
awarded the CPA WebTrust seal of assurance by the American Institute of
Certified Public Accountants (AICPA). In consecutive quarters (4Q98, 1Q99),
the E*TRADE web site was named the No. 1 online investing site in a
international survey of the industry's top 20 Internet brokerage firms by
Lafferty Information and Research Group, a global provider of high-value and
business information research. Investors can access E*TRADE at www.etrade.com
on the Internet and through many other electronic channels and online
services, including AOL (Keyword: E*TRADE) and via the TELE*MASTER interactive
telephone system. E*TRADE Securities Inc. (Member NASD/SIPC), and its parent
company, E*TRADE Group Inc., are headquartered in Palo Alto, Calif.
About Telebanc
Telebanc is the holding company for Telebank, the nation's largest and
fastest growing branchless bank providing high value financial products and
services over the Internet. Telebank provides a wide range of FDIC-insured
and other banking products and services to its customers. Telebank delivers
these products and services exclusively through the Internet and other
electronic channels, thus avoiding the costs and brick-and-mortar branches.
As a result, Telebank is able to offer significantly higher rates and lower
fees than traditional banks and deliver these services worldwide through the
convenient anytime, anywhere access on the Internet. For more information on
Telebanc, visit the World Wide Web at www.telebanc.com or www.telebank.com
The Boards of Directors of both companies have approved the merger between
E*TRADE and Telebank. Consummation of the merger, which is expected to be
completed this fall, is contingent on customary conditions including
regulatory and shareholder approval.
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.
Information contained in this release with respect to the expected
financial impact of the proposed transaction is forward-looking. These
statements represent the company's reasonable judgment with respect to future
events and are subject to risks and uncertainties that could cause actual
results to differ materially. Such risks and uncertainties relate to, among
other things, the ability to successfully integrate the two companies, and to
realize the synergies and other perceived advantages resulting from the
acquisition, material adverse changes in economic, competitive and regulatory
conditions in the markets served by the companies, material adverse changes in
the business and financial condition of either or both companies and their
respective customers, uncertainties concerning technological changes and
future product performance, and substantial delay in the expected closing of
the transaction.
*Rate valid through 7/1/99. Substantial penalty for early withdrawal.
Deposit limited to $10,000 per account.
E*TRADE Media Contacts: Ken Sporleder, ext. 129, ksporled@nealemay.com,
or Doug Hendrix, ext. 115, dhendrix@nealemay.com, both of Neale-May &
Partners, 650-328-5555
SOURCE E*TRADE Group Inc.
-0- 06/02/99
/CONTACT: Ken Sporleder, ext. 129, ksporled@nealemay.com, or Doug
Hendrix, ext. 115, dhendrix@nealemay.com, both of Neale-May & Partners,
650-328-5555/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 136683/
|
