NIKKI GREENBERG, et al v.

Los Angeles Superior Court

E*TRADE FINANCIAL CORPORATION Case No. BC 360152

NOTICE OF PENDENCY AND

SETTLEMENT OF CLASS ACTION

ATTENTION ALL PERSONS IN CALIFORNIA, FLORIDA, MARYLAND,

MASSACHUSETTS, NEVADA, NEW HAMPSHIRE, PENNSYLVANIA, AND
WASHINGTON WHO HAD TELEPHONE CALLS WITH E*TRADE

If you reside in California, Florida, Maryland, Massachusetts, Nevada, New Hampshire,

Pennsylvania, or Washington and received a telephone call from E*TRADE
FINANCIAL Corporation or its related entities (“E*TRADE”) during the period from
September 3, 2003, to May 22, 2009, or you made a call to E*TRADE’s Beverly Hills,
California branch office on August 15 or 16, 2006, and your telephone call was recorded
without notice or consent, you are a Class Member and a proposed class action settlement
(“Settlement”) could affect your legal rights. You may be entitled to file a claim for
monetary recovery.

The Settlement resolves the class action lawsuit captioned above regarding alleged
failures by E*TRADE to give adequate notice or obtain appropriate consent before
recording telephone calls and has been preliminarily approved. This Notice is only a
summary. You can obtain the full class action notice, which explains the Settlement and
your rights under it, by visiting www.GreenbergClassActionSettlement.com.

THE ACTION AND THE SETTLEMENT

There is now pending in the Los Angeles County Superior Court a lawsuit entitled
Greenberg, et al. v. E*TRADE FINANCIAL Corporation, case no. BC 360152, which
involves allegations that E*TRADE recorded telephone communications without the
knowledge or consent of all of the parties to the communication. E*TRADE has denied
and continues to deny any liability and there has been no finding that E*TRADE has
violated any laws.

Without admitting liability, E*TRADE has agreed to pay a total amount of seven million
five hundred thousand dollars ($7,500,000) in settlement (the “Common Fund”), which
after payment therefrom of Class Counsel’s attorneys’ fees and costs, will constitute the
Settlement Funds.

Subject to approval of the Settlement by the Court, each member of the Settlement Class
who does not request exclusion from the class and who submits a valid claim as
described below may be entitled to a portion of the Settlement Funds. The actual amount
received by each Class Member will depend on the number of claims submitted and
approved from each of the various states and will be determined by a formula set forth in
the full description of the Settlement, which may be obtained by visiting
www.GreenbergClassActionSettlement.com.

HOW TO MAKE A CLAIM

If you are a Class Member and whish to receive a portion of the Settlement Funds, you
must fill out and submit a valid Claim Form at the following website:
www.GreenbergClassActionSettlement.com. This must be done no later than September
25, 2009.

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 FINAL JUDGMENT AND RELEASE OF ALL CLAIMS

If the Court approves the proposed settlement, it will enter a final judgment in the action
on the merits as to all Class Members who do not request to be excluded from the
Settlement Class. All Class Members who submit claims, and all Class Members who do
not validly and timely request to be excluded from the proposed settlement, shall be
subject to a binding judgment in favor of E*TRADE under res judicata. All such Class
Members shall be forever barred from prosecuting their own lawsuits and shall be
deemed to have released E*TRADE and its agents from all claims, causes of action or
losses of any kind whatsoever relating to privacy rights or the recording of telephone
calls which any Class Member has or may claim to have against such persons which are
based upon, arising out of, or in any way relating to any of the acts, omissions or other
conduct that have or could have been alleged or otherwise referred to in the action.

NOTICE OF COURT HEARING

The Honorable Carolyn B. Kuhl, of the Superior Court of California for the County of
Los Angeles, will hold a hearing on October 16, 2009 at 9:00 a.m., in Department 323 of
the Los Angeles Superior Court, Central Civil West Courthouse, located at 600 S.
Commonwealth Ave., Los Angeles, California, 90005, to consider whether to grant final
approval to the proposed Settlement and Class Counsel’s request for attorneys’ fees and
costs in an amount not to exceed twenty-five percent (25%) of the Common Fund plus
reimbursement of costs paid to Representative Plaintiff. You have the right to appear at
the hearing, although you do not have to.

You may comment on, or object to, the terms of the proposed settlement by September
16, 2009. The full notice describes how to submit comments or objections.

TO EXCLUDE YOURSELF FROM THE SETTLEMENT

If you do not wish to participate in or be bound by the proposed Settlement, you must
exclude yourself as described in the full notice, by September 25, 2009, or you will be
barred from prosecuting any legal action against E*TRADE related to settled claims. If
you exclude yourself, you may NOT file a claim and you will not receive compensation
under the Settlement.

To view the full notice or fill out the claim form, please visit
www.GreenbergClassActionSettlement.com.

PLEASE DO NOT CONTACT THE COURT WITH ANY QUESTIONS

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