Fitch Affirms E*Trade Global Asset Management's ABS CDO.

NEW YORK -- Fitch Ratings affirms the 'CAM2' ABS CDO asset manager rating for E*Trade Global Asset Management Group (ETGAM). The rating is based on the organization's extensive experience with mezzanine asset-backed securities (ABS) and mortgage-backed securities (MBS) securities, the quality of their documented credit analysis and the institutional backing of E*Trade Financial Corporation.

ETGAM is responsible for the management of over $3 billion in capital, which is spread among four ABS collateralized debt obligations (CDOs) and E*Trade Bank's balance sheet. The senior management team of ETGAM has been investing in mezzanine ABS and MBS for over 12 years and has on average 17 years of experience. Fitch recognizes ETGAM's commitment to maintaining and developing its CDO platform and its ability to manage assets within the CDO structure. ETGAM's CDOs have been structured to contain approximately the same sector diversification as E*TRADE Bank's investment portfolio.

ETGAM's 'CAM2' rating is based on ETGAM's composite score of 2.10, which represents a weighted average score based on the scores assigned for each group of criteria factors summarized as follows:

--Company and Management Experience 2.00;

--Staffing 1.75;

--Procedures and Controls 2.00;

--Portfolio Management 1.75;

--CDO Administration 2.25;

--Technology 1.75;

--CDO Portfolio Performance 2.75.

ETGAM's composite score of 2.10 is used to establish a systematically applied quantitative link between its asset manager rating and Fitch's CDO rating criteria, in accordance with the approach outlined in Fitch Research on 'Reviewing and Rating CDO Asset Managers' dated Jan. 27, 2006, available on the Fitch Ratings web site at www.fitchratings.com.

E*TRADE Global Asset Management, Inc., a Delaware corporation, is a wholly-owned subsidiary of E*TRADE Bank, which is a part of E*Trade Financial Corp., a publicly traded diversified financial services corporation (NYSE:ET). E*TRADE Financial Corp. is comprised of three divisions: E*TRADE Securities LLC -- the well known internet equity broker, E*TRADE Bank -- a traditional savings and thrift bank, and E*TRADE Global Asset Management -- the asset management arm of the firm. ETGAM is a registered broker-dealer and investment adviser (dual registrant) that provides investment advisory services on a fee basis to E*TRADE Bank, and its affiliates.

Fitch rates CDO asset managers by asset class, on a scale of 1 to 5, with 1 being the highest rating. These ratings are based on a standardized scorecard methodology that includes factors in each of the seven groups as noted above.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.