E*TRADE Financial Corporation Announces Proposed Offering of Senior Notes

  E*TRADE Financial Corporation Announces Proposed Offering of Senior Notes

Business Wire

NEW YORK -- November 05, 2012

E*TRADE Financial Corporation (NASDAQ: ETFC) today announced that it proposes
to offer, subject to market and other considerations, $1,305 million in
aggregate principal amount of Senior Notes in two tranches due 2017 and 2019,
respectively. Actual terms of the notes, including the interest rate,
principal amount, and redemption provisions, will depend on market conditions
at the time of pricing.

E*TRADE will use the net proceeds from the sale of the notes to redeem all of
its outstanding 12.500% Springing Lien Notes due 2017 and all of its 7.875%
Senior Notes due 2015 for an aggregate redemption price of $1,305 million,
which includes the associated redemption premiums, principal amount, accrued
interest and related fees and expenses.

BofA Merrill Lynch, Goldman, Sachs & Co. and Morgan Stanley are serving as
joint lead book-runners for the offering.

The offering of the notes is made only by means of a prospectus supplement and
the accompanying prospectus, copies of which may be obtained from BofA Merrill
Lynch, 222 Broadway, 11th Floor, New York, NY 10038, Attention: Prospectus
Department or by e-mail: dg.prospectus_requests@baml.com.

This press release does not constitute an offer to sell or a solicitation of
an offer to buy any of the notes or any other securities, nor will there be
any sale of the notes or any other securities in any state or jurisdiction in
which such an offer, solicitation or sale is not permitted.

About E*TRADE Financial

The E*TRADE Financial family of companies provides financial services
including online brokerage and related banking products and services to retail
investors. Specific business segments include Trading and Investing and
Balance Sheet Management. Securities products and services are offered by
E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are
offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its
subsidiaries and affiliates. More information is available at www.etrade.com.

Important Notices

E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered
trademarks of E*TRADE Financial Corporation. ETFC-G

Forward-Looking Statements: This press release contains forward-looking
statements, including statements relating to E*TRADE’s expectations regarding
the completion, timing and size of the proposed public offering. These
forward-looking statements are based on current expectations that are subject
to a number of uncertainties and risks, and actual results and the timing of
events may differ materially. The uncertainties and risks include, but are not
limited to, uncertainties and risks related to market conditions and the
satisfaction of customary closing conditions related to the public offering.
There can be no assurance that the public offering will be completed on the
anticipated terms, or at all. Additional risks and uncertainties can be found
in the annual, quarterly and current reports on Form 10-K, Form 10-Q, and Form
8-K previously filed by E*TRADE with the Securities and Exchange Commission
(including information in these reports under the caption “Risk Factors”). Any
forward-looking statement included in this release speaks only as of the date
of this communication; the Company disclaims any obligation to update any

© 2012 E*TRADE Financial Corporation. All rights reserved.


E*TRADE Financial Media Relations
Robert Horton, 646-521-4418
E*TRADE Financial Investor Relations
Brett Goodman, 646-521-4406
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