E*TRADE Financial Announces Secondary Offering of 27,394,448 Shares of Common Stock by an Affiliate of Citadel LLC

  E*TRADE Financial Announces Secondary Offering of 27,394,448 Shares of
  Common Stock by an Affiliate of Citadel LLC

Business Wire

NEW YORK -- March 13, 2013

E*TRADE Financial Corporation (NASDAQ: ETFC) today announced that Citadel
Equity Fund Ltd., an affiliate of Citadel LLC, plans to offer 27,394,448
shares of E*TRADE’s common stock in an underwritten offering. The closing of
the offering is expected to occur on or about March 19, 2013, subject to
customary closing conditions. E*TRADE will not receive any proceeds from the
sale of common stock by the selling stockholders in the offering, and its
total number of common shares outstanding will not change as a result of the
offering.

Citigroup will be the sole underwriter of this offering. Citigroup proposes to
offer the shares from time to time for sale in negotiated transactions or
otherwise, at market prices prevailing at the time of sale, at prices related
to such prevailing market prices or at negotiated prices.

A copy of the prospectus supplement relating to the offering may be obtained
by contacting: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717 (Tel: 800-831-9146).

A shelf registration statement relating to the offering was filed with the
Securities and Exchange Commission on May 14, 2012 and became effective
automatically upon filing. The offering is being made solely by means of a
prospectus supplement and accompanying prospectus. This press release does not
constitute an offer to sell or the solicitation of an offer to buy securities
and shall not constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale is unlawful.

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.

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 relating to E*TRADE’s expectations regarding the completion of the
offering. These forward-looking statements are subject to a number of
uncertainties and risks, which include, but are not limited to, uncertainties
and risks related to the satisfaction of customary closing conditions relating
to the public offering. There can be no assurance that the public offering
will be completed on the anticipated timeframe 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 information.

© 2013 E*TRADE Financial Corporation. All rights reserved.

Contact:

E*TRADE Financial Media Relations
646-521-4418
mediainq@etrade.com
or
E*TRADE Financial Investor Relations
Brett Goodman, 646-521-4406
brett.goodman@etrade.com
 
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