Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased Securitie

A copy of the Complaint is available from the court or fromGlancy Binkow & Goldberg LLP. Please contact us by phoneto discuss this action or to obtain a copy of the Complaintat (310) 201-9150 or Toll Free at (888) 773-9224, by emailat , or visit our website at .

The Complaint charges E-Trade and certain of the Company'sexecutive officers with violations of federal securitieslaws. Among other things, plaintiff claims that defendants'material omissions and dissemination of materially falseand misleading statements concerning the Company's business,prospects and financial condition caused E-Trade's stockprice to become artificially inflated, inflicting damageson investors. E-Trade, through its subsidiaries, offersfinancial services to retail and institutional customersworldwide, including retail investments and trading, checking,money market and savings accounts, mortgage and home equityproducts, real estate loans, and various consumer loans.The Complaint alleges that throughout the Class Period defendantsfailed to disclose that: (1) the Company was experiencingincreased delinquencies in its mortgage and home equityportfolios; (2) the Company had failed to adequately reservefor loan losses and would be forced to take $95 millionin charge-offs and provision expenses of $245 million inthe second half of 2007; (3) the Company had failed to timelyrecord impairments on certain securities and, consequently,such portfolios were materially overvalued; and (4) as aresult of the foregoing, the Company's statements aboutits 2007 financial and operational results were lackingin any reasonable basis when made.

On September 17, 2007, E-Trade shocked investors when itannounced that the Company was exiting the wholesale mortgagebusiness, restructuring its institutional brokerage business,and revising its previously issued 2007 financial guidance,and that it expected, among other things, ``severance, restructuringand other exit charges'' of $32 million as a result of itsdecision to exit and restructure the businesses. Additionally,the Company stated that it was revising its earnings guidancefor 2007, to an earnings-per-share (EPS) range of $1.05to $1.15 for the year, significantly lower than the Company'spreviously issued EPS guidance in the range of $1.53 to$1.67. As a result of this news, over the next six tradingdays E-Trade shares fell $2.32 per share, or more than 16.3percent, to close on September 25, 2007, at $11.89 per shareon heavy trading volume.

Even after these revelations, the Company's stock pricewas still artificially inflated. On November 9, 2007, E-Traderevealed that it would take a write-down on a portfolioof securities and mortgage backed CDOs. E-Trade also reportedthat the Securities and Exchange Commission had opened aninquiry of the firm's loans and securities portfolios. Followingthis disclosure, a Citigroup analyst raised concerns aboutthe Company's future viability. On November 12, 2007 (thefirst trading day after the write-down was announced), theCompany's stock fell $5.04 per share, or 59 percent, toclose at $3.55 per share on heavy trading volume.

Plaintiff seeks to recover damages on behalf of Class membersand is represented by Glancy Binkow & Goldberg LLP, a lawfirm with significant experience in prosecuting class actions,and substantial expertise in actions involving corporatefraud.

If you are a member of the Class described above, you maymove the Court, not later than December 3, 2007, to serveas lead plaintiff, however, you must meet certain legalrequirements. If you wish to discuss this action or haveany questions concerning this Notice or your rights or interestswith respect to these matters, please contact Michael Goldberg,Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue ofthe Stars, Suite 311, Los Angeles, California 90067, bytelephone at (310) 201-9150 or Toll Free at (888) 773-9224or by e-mail to info@glancylaw.com.

More information on this and other class actions can befound on the Class Action Newsline at