Business Realignment to Focus on Key Customer Segments and Drive Increased
Shareholder Value
NEW YORK, Jan. 6 /PRNewswire-FirstCall/ -- E*TRADE FINANCIAL Corporation
(NYSE: ET) today announced an organizational realignment designed to more
directly link the Company's business operations with its high growth customer
segments. The new management structure will align all operations directly to
the Company's retail and institutional customer segments, marking a change
from the prior business alignment of banking and brokerage.
To manage the operations of the realigned organization, the Board has
approved the promotion of Lou Klobuchar, Jr. to President, E*TRADE Financial
Services and the election of Dennis Webb to a newly created executive officer
position, President, E*TRADE Capital Markets. Both Mr. Klobuchar and Mr. Webb
will report to E*TRADE FINANCIAL President and COO R. Jarrett Lilien.
"Today's announcement signals the next chapter of the Company's
evolution," said Mitchell H. Caplan, the Company's Chief Executive Officer.
"With all business operations directly aligned with high growth customer
segments, we are poised to deliver top line revenue growth and bottom line
results for shareholders by providing our key customers a wide range of value-
priced, integrated financial solutions that offer advanced functionality and
service."
Lou Klobuchar Jr., formerly the Company's Chief Brokerage Officer and
President of E*TRADE Securities LLC, will be responsible for all businesses
serving the global retail customer. In this expanded role, Mr. Klobuchar will
be responsible for driving complete integration of all of E*TRADE FINANCIAL's
retail products, launching the next generation of product innovation and
driving overall growth in the Company's retail business.
In his capacity as President, E*TRADE Capital Markets, Dennis Webb will be
responsible for all businesses serving the global institutional customer.
Webb, formerly Executive Vice President, Capital Markets -- Banking, has been
employed by E*TRADE FINANCIAL since 2000, and has served in the roles of Asset
Liability Manager, Head of Whole Loan Secondary Markets and President of
E*TRADE Global Asset Management.
As part of the organizational shifts, the Company will realign its
external financial segment reporting around the new retail and institutional
customer segments. The Company anticipates that systems adjustments will be
in place to enable the Company to report in this manner for periods beginning
on or after January 1, 2005. The financial performance for 2004 will continue
to be reported as Bank and Brokerage, in accordance with the manner in which
the business was managed during this period.
About E*TRADE FINANCIAL
The E*TRADE FINANCIAL family of companies provides financial services
including brokerage, banking and lending for retail, corporate and
institutional customers. Securities products and services are, and will
continue to be, offered by E*TRADE Securities LLC (Member NASD/SIPC). Bank
and lending products and services are, and will continue to be, offered by
E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. Bank
deposits are FDIC-insured up to $100,000. Subject to credit approval.
Important Notice
E*TRADE FINANCIAL and the E*TRADE FINANCIAL logo is a registered trademark
or trademark of E*TRADE FINANCIAL Corporation. 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, the activity of customers and assets held at the institution,
seasonality, the development and enhancement of 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 reports previously filed by E*TRADE Group,
Inc. or E*TRADE FINANCIAL Corporation with the SEC on Form 10-K (including
information under the caption "Risk Factors") and quarterly reports on Form
10-Q.
E*TRADE FINANCIAL Media Contact
Pam Erickson
E*TRADE FINANCIAL Corporation
617-296-6080
pam.erickson@etrade.com
E*TRADE FINANCIAL Investor Relations Contact
Adam Townsend
E*TRADE FINANCIAL Corporation
703-236-8719
adam.townsend@etrade.com
SOURCE E*TRADE FINANCIAL Corporation
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Related links:
http://www.etrade.com
CONTACT:
media, Pam Erickson, +1-617-296-6080, or
pam.erickson@etrade.com, or investors, Adam Townsend,
+1-703-236-8719, or adam.townsend@etrade.com, both of E*TRADE
FINANCIAL Corporation
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