E*TRADE Financial Corporation Responds to Citadel Letter; Says Proposals Not in the Best Interests of Shareholders

The Board of Directors of E*TRADE Financial Corporation ETFC on July 20, 2011 received a letter from Citadel LLC requesting a special shareholder meeting to vote on a number of proposals including: the appointment of a special committee to hire an investment banker that has not previously advised the Company or the Board to review E*TRADE's strategic alternatives, including a possible sale of the company; the declassification of E*TRADE's Board of Directors so that all members are elected annually; and the removal of two independent Directors. E*TRADE believes that it has already addressed the substance of Citadel's proposals and that it is not in the best interests of shareholders to call a special meeting at this time.