New Version Offers Valuation Flexibility and Choice to Meet the FASB's
Upcoming Expensing Standard
NEW YORK, Nov. 8 /PRNewswire-FirstCall/ -- E*TRADE FINANCIAL Corporation
(NYSE: ET) today announced that E*TRADE FINANCIAL Corporate Services, a
leading provider of stock plan software and services, is releasing a preview
version of Equity Edge 6, the latest version of its stock plan management and
reporting platform. The preview version of Equity Edge 6 offers valuation
flexibility and choice with support for both binomial lattice and
Black-Scholes option pricing models. Equity Edge 6, slated to formally launch
in early 2005, will provide companies with the tools they need to comply with
the Financial Accounting Standards Board's (FASB) final expensing standard
when it becomes effective.
"E*TRADE FINANCIAL is dedicated to supporting customer needs in
compliance, valuation and accounting, particularly during this time of
increased scrutiny of equity compensation and stock plan accounting," said
Colleen Moorehead, vice president, E*TRADE FINANCIAL Corporate Services.
"Although the FASB has delayed the effective date until after June 2005, it's
critical that companies have tools today that will help them devise a strategy
to navigate an evolving regulatory environment."
"The ability to evaluate different option pricing models and select the
best choice to meet our reporting needs is critical to the successful
implementation of the proposed FASB expensing standard," said Jeremy Wood,
vice president, Finance, at Netflix, an E*TRADE FINANCIAL Corporate Services
client. "Equity Edge 6 Preview is giving us a distinct advantage by providing
us with the ability to run different models in advance of the final FASB
ruling."
Equity Edge is E*TRADE FINANCIAL's advanced stock plan management and
reporting platform that gives companies maximum compliance and control over
their equity compensation plans. Equity Edge simplifies plan valuation,
accounting, compliance, and administration, providing the power and
flexibility needed to manage stock options, restricted stock, employee stock
purchase plans and insider reporting more efficiently and accurately. The
Equity Edge 6 Preview includes:
-- A binomial lattice model for options that supports the eight inputs
recommended by the FASB
-- Reporting functionality that assists with calculating the new
"suboptimal exercise factor" and "post-vesting termination rate" inputs
recommended by the FASB
-- The ability to compare Black-Scholes and binomial lattice valuations
with dollar and percent differences to help companies assess which
approach provides the most favorable results
E*TRADE FINANCIAL Corporate Services provides complete stock plan
administration and risk-reduction compliance solutions to more than 2,100
corporate clients and 1.3 million stock plan participants. E*TRADE
FINANCIAL's team of equity compensation experts manage every aspect of a
company's stock plan, enabling global employees to easily understand, access
and manage their stock plan benefits. In addition, E*TRADE FINANCIAL empowers
executives, managers and employees to capitalize on their stock plan wealth.
For more information about Equity Edge 6, contact E*TRADE FINANCIAL Corporate
Services at 800-783-3388 or corpservices@etrade.com.
About E*TRADE FINANCIAL
The E*TRADE FINANCIAL family of companies provide financial services
including brokerage, banking and lending for retail, corporate and
institutional customers. Securities products and services are offered by
E*TRADE Securities LLC (Member NASD/SIPC). Bank and lending products and
services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or
its subsidiaries.
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 investor, Adam Townsend,
+1-703-236-8719, or adam.townsend@etrade.com, both of E*TRADE
FINANCIAL Corporation
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