Kinda on that line....this is WAR, and it's not going to be pretty, but the consumer is going to WIN, and that's what it's all about.
Wednesday June 2, 8:25 am Eastern Time
Company Press Release
SOURCE: E*TRADE Group Inc.
Telebanc Introduces FDIC-Insured 12-Month CD at 6.50 Percent 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® Group Inc. (Nasdaq: EGRP - news) today announced the first banking product resulting from its recently announced merger with the nation's largest online bank, Telebanc (Nasdaq: TBFC - news) -- 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 - news) 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.
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