Joseph Sclafani Joins ETRADE FINANCIAL Board of Directors

Business Wire, July 1, 2008

NEW YORK -- E*TRADE FINANCIAL Corporation (NASDAQ: ETFC) today announced that Joseph L. Sclafani, retired executive vice president and controller, J.P. Morgan Chase & Co., has joined the Board of Directors of E*TRADE FINANCIAL Corporation effective June 30, 2008. Mr. Sclafani, 59, will be a member of the Company's Finance and Risk Oversight Committee and the Company's Audit Committee, where he will be designated a financial expert.

"Joe is one of the most experienced corporate controllers in the industry, and his knowledge of accounting and financial issues is second-to-none," said Donald H. Layton, Chairman of the Board and Chief Executive Officer for E*TRADE FINANCIAL Corporation. "His knowledge and experience will be of tremendous value to us as we rebuild E*TRADE's financial health and return to growth."

"E*TRADE's legacy as a strong franchise with a powerful brand is indisputable," said Mr. Sclafani. "I look forward to contributing my industry experience and perspective to assist in executing the straightforward and solid plan the management team has in place to achieve long-term growth."

Mr. Sclafani's 38 years of experience include 27 years at J.P. Morgan Chase & Co. and its predecessors, serving most recently as Corporate Controller responsible for corporate financial operations, regulatory reporting, financial accounting and reporting and accounting policies. Mr. Sclafani also spent 11 years at KPMG as a certified public accountant.

Mr. Sclafani earned a BA from St. Francis College in Brooklyn and completed post-graduate studies in finance at Bernard Baruch.

About E*TRADE FINANCIAL

The E*TRADE FINANCIAL family of companies provides financial services including trading, investing and banking for retail and institutional customers. 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.

Important Notice

E*TRADE FINANCIAL, E*TRADE and the E*TRADE logo are trademarks or registered trademarks 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, macro trends of the economy in general and the residential real estate market, instability in the consumer credit markets and credit trends, rising mortgage interest rates, tighter mortgage lending guidelines across the industry, increased mortgage loan delinquency and default rates, portfolio growth, portfolio seasoning and resolution through collections, sales or charge-offs, 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 FINANCIAL Corporation with the SEC on Form 10-K (including information under the caption "Risk Factors") and quarterly reports on Form 10-Q.

[c] 2008 E*TRADE FINANCIAL Corporation. All rights reserved.