ETRADE Financial Corporation Responds to Citadel Letter; Says Not in Best Interests of Holders to Call Meeting

The Board of Directors of ETRADE 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 ETRADE's strategic alternatives, including a possible sale of the company; the declassification of ETRADE's Board of Directors so that all members are elected annually; and the removal of two independent Directors. ETRADE 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.