E*TRADE Group (ETFC)

[Joemoney]

E*TRADE Bank Further Extends Investment in Community Through CRA Fund Of SBICs, L.P.

E*TRADE Bank Helps Fill the Gap Between Available Capital and Needs of Small Business Through Portfolio of Small Business Investment Companies

ARLINGTON, Va., Oct. 22 /PRNewswire/ -- E*TRADE Bank, the nation's largest branchless bank and a wholly-owned subsidiary of E*TRADE Group, Inc. (NYSE: ET - news), today announced that it has invested $3 million in the CRA Fund of Small Business Investment Companies, L.P. (``SBICs''), a limited partnership through which banks invest in a diversified portfolio of SBICs operating throughout the United States.

``E*TRADE Bank's $3 million commitment to the CRA Fund of SBICs provides focused support to our assessment area while it opens the door to develop lending and other investment opportunities with small businesses participating in the Fund,'' said Mitchell Caplan, chief financial products officer and managing director, North America, E*TRADE Group, Inc. ``The Fund's strategy is consistent with our CRA requirements and fits the footprint of non-traditional institutions like E*TRADE Bank.''

CRA regulations are designed to encourage banks to invest in their assessment areas by providing capital to businesses and helping the community grow. The Small Business Investment Company (SBIC) Program was created by Congress in 1958 to fill the gap between the availability of venture capital and the needs of small businesses in start-up and growth situations.

SBICs, licensed and regulated by the Small Business Administration, are privately owned and managed investment firms that use their own capital, plus funds borrowed at favorable rates with an SBA guarantee, to make venture capital investments in small businesses. They provide equity capital, long-term loans, debt-equity investments and management assistance to qualifying small businesses. SBICs benefit in sharing the success of the small business as it grows and prospers.

CRA Funding manages the Fund in association with Hamilton Lane of Philadelphia and Pantheon Ventures of San Francisco. Both are leading investors in venture capital and private equity partnerships with responsibility for approximately $30 billion in assets.

About E*TRADE Bank

E*TRADE Bank is a wholly-owned subsidiary of E*TRADE Group, Inc. Deposits at E*TRADE Bank are insured up to $100,000 by the FDIC. E*TRADE Bank is the nation's largest branchless bank with over $13 billion in assets, more than $8 billion in deposits and over 436,000 customer accounts as of September 30, 2001. E*TRADE Bank is the only branchless bank to be ranked among the top 14 federally chartered U.S. savings banks based on both assets and deposits according to FDIC data as of September 30, 2001. E*TRADE Bank's wholly-owned subsidiary, the award-winning* E*TRADE Mortgage, is one of the nation's largest online mortgage origination platforms. E*TRADE Bank is also affiliated with E*TRADE Access, Inc., now the largest off-premises ATM network in the U.S. and the third largest ATM network nationwide based on American Bankers Association Data as of July 27, 2000. E*TRADE Bank can be accessed at etradebank.com or 1-800-ETBANK-1.

Important Notice

E*TRADE, the E*TRADE logo, E*TRADE Bank and Stateless Architecture are registered trademarks of E*TRADE Group, Inc. or its subsidiaries. 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, 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, 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.

CONTACT: Cam Gilbert of E*TRADE Group, Inc., [phone], or [e-mail]; or Lawrence Mondschein of CRA Funding, LLC, [phone], or [e-mail].

SOURCE: E*TRADE Group, Inc.

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