Leading Online Mortgage Originator More Than Doubles Volumes in Less Than Two Months Through Integration With Nation's Largest Pure-Play Internet Bank

ARLINGTON, Va., July 30 /CNW/ -- E*TRADE Bank, the nation's largest pure-play Internet bank and a wholly-owned subsidiary of E*TRADE Group, Inc. (NYSE: ET), today announced its latest milestone, funding more than $2 billion in mortgage originations since E*TRADE's February 2001 acquisition of E*TRADE Mortgage, one of the nation's largest online retail mortgage originators. First crossing the $1 billion milestone in late May 2001, the total volume of loans originated by E*TRADE Mortgage and funded exclusively by E*TRADE Bank have more than doubled in less than 2 months.

E*TRADE Bank and E*TRADE Mortgage, formerly known as LoansDirect, continue to generate significant cost savings and eliminate their dependence on third party warehouse lenders by leveraging an integrated financial services model that now includes mortgage origination in addition to banking, brokerage and other wealth management services, all provided through E*TRADE Group and its subsidiaries. Mortgage lending is a strong financial move that will continue to build on E*TRADE's revenue diversification strategy. In addition, the integration of this efficient and user-friendly platform is the Company's latest advance in securing the core financial relationship with consumers.

"The launch of E*TRADE Mortgage was a big win for the Bank, and for all of E*TRADE Group, in our second quarter. This latest milestone of funding more than $2 billion in mortgage originations, less than two months after reaching the $1 billion mark, demonstrates the synergy and resilience of E*TRADE's integrated financial service model," said Mitchell H. Caplan, managing director, North America and chief global banking and wealth management officer of E*TRADE Group, Inc. "In a competitive and constantly changing marketplace, our diversified model drives asset growth, diversifies revenue and creates a key strategic advantage. With the ability to originate and the capacity to fund, we streamline the mortgage origination process to increase value for our customers and we enhance profitability to increase value for our shareholders."

E*TRADE Mortgage continues to maintain its leadership position as one of the largest online retail mortgage lenders. Quarterly volumes have virtually doubled to $1.4 billion for the recent quarter ending June 30, 2001, as compared to $700 million for the first quarter of 2001. In addition, revenues increased close to 90% quarter over quarter, with E*TRADE Mortgage generating gross revenues of nearly $25.4 million in Q2 '01, through origination points, loan-related fees and gain on sale of loans, as compared to $13.6 million in Q1 '01.

Mortgages are currently the third most widely-used financial service product on the Internet. Through LoansDirect's efficient and direct lending platform, E*TRADE now offers a full range of mortgage products to gain another key competitive advantage by securing the core financial relationship with consumers and expanding cross-sell opportunities to its growing customer base.

www.etrade.com