Investools Reports Record 2006 Financial Results.

thinkorswim Retail Accounts Grow to Approximately 24,500 as of January 31, 2007

NEW YORK -- First graph after first table, third sentence of release should read: Accounts at thinkorswim grew from 15,300 at the time of the announcement of our merger...(sted Accounts at thinkorswim grew from 5,300 at the time of the announcement of our merger...).

The corrected release reads:

INVESTOOLS REPORTS RECORD 2006 FINANCIAL RESULTS

thinkorswim Retail Accounts Grow to Approximately 24,500 as of January 31, 2007

Investools Inc. (NASDAQ:SWIM), the market leader in fulfilling the lifelong education needs of self-directed investors, and a leading online brokerage platform serving the execution needs of retail investors, today announced its fourth quarter and full year 2006 financial results and selected financial and operating metrics for thinkorswim Group.

Investor Education Group highlights for the Quarter Ended December 31, 2006:

* Sales Transaction Volume increased 28 percent from $50.0 million in Q4 2005 to $64.2 million in Q4 2006.

* GAAP Revenue increased 20 percent from $36.8 million in Q4 2005 to $44.2 million in Q4 2006.

* Adjusted EBITDA (excluding certain items and interest income) increased 17 percent to $12.4 million in Q4 2006 from $10.6 million in Q4 2005.

* Net loss of $13.0 million for Q4 2006 up from a net loss of $4.2 million in Q4 2005.

* Total graduates in Q4 2006 of 10,300, matched the number in Q4 2005; Investools branded graduates increased 39 percent from 3,700 in Q4 2005 to 5,150 in Q4 2006.

Investor Education Group highlights for the Year Ended December 31, 2006:

* Sales Transaction Volume increased 43 percent from $176.2 million for 2005 to $252.8 million in 2006.

* GAAP Revenue increased 23 percent from $138.6 million in 2005 to $170.3 million in 2006.

* Adjusted EBITDA (excluding certain items and interest income) increased 112 percent from $25.1 million in 2005 to $53.4 million in 2006.

* Net loss of $39.7 million for 2006 up from a net loss of $15.7 million in 2005.

* Cash and cash equivalents increased by $46.7 million to $75.1 million at the end of 2006, net of $2.4 million paid for thinkorswim-related transaction costs.

* Total graduates in 2006 were 45,100, up from 43,800 in 2005; Investools branded graduates increased 56 percent from 11,100 in 2005 to 17,350 in 2006.

* Active subscribers to its Online Investor Toolbox(TM) and Prophet.net websites increased to 85,400 at the end of 2006 up from 68,000 at the end of 2005.

Sales transaction volume, a non-GAAP financial measure, represents sales generated in a particular period before the impact of recognition of deferred revenue from prior periods and the deferral of current period sales. Please refer to the reconciliation of total revenue to sales transaction volume below for further discussion of the relevance of this measure.

The Company believes that Adjusted EBITDA (before certain cash items), a non-GAAP financial measure, is an important measure of financial performance because it increases the comparability of operating performance between periods. This is caused primarily by the impact of accounting for costs associated with deferred revenue, as the majority of such costs are expensed as incurred at the time of the sale. Please refer to the reconciliation of net loss to Adjusted EBITDA below for further discussion and a calculation of this measure.

thinkorswim highlights for the Quarter Ended December 31, 2006:

* Revenue increased 80 percent from $9.6 million in Q4 2005 to $17.5 million in Q4 2006.

* Adjusted EBITDA (excluding certain items) increased 76 percent from $3.6 million in Q4 2005 to $6.3 million in Q4 2006.

* Net increase in funded accounts of 6,275 in Q4 2006, up from a net increase in funded accounts in Q4 2005 of 1,200.

* Client assets increased from $892 million to $1.103 billion.

thinkorswim highlights for the Year Ended December 31, 2006:

* Revenue increased 136 percent from $25.7 million for 2005 to $60.8 million in 2006.

* Adjusted EBITDA (excluding certain items) increased 170 percent from $8.4 million in 2005 to $22.8 million in 2006.

* Funded retail accounts increased to approximately 22,375 at year end.

* Client assets increased from $574 million to $1.103 billion.

thinkorswim New Account Metrics Since Announcement of Merger between Investools and thinkorswim:

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"Investools surpassed a quarter of a billion dollars in sales transaction volume and achieved Adjusted EBITDA margins of 21% in 2006, setting new records for financial performance for our shareholders," said Lee K. Barba, Chairman and CEO of Investools Inc. "Since the completion of our merger with thinkorswim earlier this month, we have accelerated our efforts to integrate the leading investor education and online brokerage platforms to enable our students to trade across the equity, options, futures, fixed income and forex markets. Accounts at thinkorswim grew from 15,300 at the time of the announcement of our merger, to 24,500 as of the end of January. The number of DARTS almost doubled, increasing from 7,800 in early September to 13,700 by the end of January. These results exceeded our expectations for the period preceding the closing of the merger."

Acquisition of Certain Intangible Assets and Expanded Relationship with Leading Group of Active Options Traders

Investools announced today that it has entered into a long-term relationship and acquired certain intangible assets from one of the most active groups of retail option traders, known as MAGs, an existing customer of thinkorswim. Pursuant to a definitive agreement entered into yesterday, Investools will immediately issue 650,000 unregistered common shares, and subject to meeting certain thresholds over a three-year period, will issue an additional 950,000 shares of unregistered common shares.

"We are excited to establish a strategic, exclusive brokerage relationship, including the acquisition of an perpetual license to proprietary trading software, with MAGs, one of the option market's leading active retail trading groups," said Lee K. Barba, Chairman and CEO of Investools Inc. "We have also formed thinkpro, a separate division within thinkorswim, leveraging MAGs' expertise and software which will offer Investools students turnkey access to education, the thinkpipes trading platform, the MAGs software, and a community of active retail traders on site at thinkorswim's Chicago offices."

Restatement of Quarterly Periods

On February 23, 2007, the Company determined that certain revenue related to workshops and homestudies had not been appropriately recognized during the period the workshop was attended or homestudy delivered. There is no impact on Sales Transaction Volume, Cash or Adjusted EBITDA. Based on the preliminary results, the Company will restate each of the first three quarters of 2006 to appropriately reflect the recognition of revenue. The expected impact of the restatement on the first three quarters of 2006 is an increase in GAAP revenue of $13.4 million and an improvement of Net Loss by $13.4 million. Consequently, in consultation with the Company's Audit Committee and its independent registered public accounting firm, KPMG LLP, the Company has determined that the Company's previously issued quarterly financial statements filed on Form 10-Q for the periods ended March 31, June 30, and September 30, 2006 should no longer be relied upon. The Company will restate these previously issued financial statements. As a result of this restatement, management is determining the impact this will have on our assessment of internal controls over financial reporting.

The figures used throughout this release reflect the expected impact of these changes. The Company is in process of finalizing its financial results and therefore the financial statements in this press release are preliminary. Management does not expect the final numbers to be filed in Form 10-K to be materially different.

Conference Call Information

A conference call to discuss the financial results is scheduled for 10:00 a.m. Eastern today. The live call is being webcast by CCBN and will be available through the Company's corporate websites at www.investools.com or www.thinkorswim.com (under Investor Relations).

The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.earnings.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com). Please allow extra time prior to the call to visit the site and to download the streaming media software required to listen to the Internet broadcast. The online archive of the broadcast will be available within two hours following completion of the live call.

All statements in this press release that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as "believe," "intend," "expect," "may," "could," "would," "will," "should," "plan," "project," "contemplate," "anticipate," or similar statements. Because these statements reflect the Company's current views concerning future events, these forward-looking statements are subject to risks and uncertainties. The Company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this press release, including, without limitation, the success of brand development efforts and strategic alliances; demand for the Company's products and services; the ability to compete effectively and adjust to changing market conditions; inability to protect the Company's proprietary technology; difficulties or delays in developing improved products when expected or desired and with the additional features contemplated or desired; the potential for intellectual property infringement, warranty, product liability, and other claims; the uncertainties associated with governmental regulation; and other factors detailed from time to time in Investools' SEC filings. The forward-looking statements are made only as of the date hereof and the Company assumes no obligation to publicly update or revise the forward-looking statements whether as a result of new information, future events, or otherwise.

About Investools Inc.

Investools Inc. offers market-leading investor education and execution products and services for self-directed investors. Investools Education Group offers a full range of investor education products and services that provide lifelong learning in a variety of interactive delivery formats, including instructor-led synchronous and asynchronous online courses, in-person workshops, one-on-one and one-to-many online coaching programs and telephone, live-chat and email support. thinkorswim Group is a leading online brokerage and technology provider focused on providing services to self-directed options traders and institutional users. thinkorswim offers customers a broad range of products including equities, exchange traded options, futures, mutual funds, and bonds. thinkorswim provides unique front end trading platforms that allow its customers to trade electronically and provides sophisticated trading tools and analytics, including tools for implementing complex, multi-leg options strategies. The products and services offered by Investools Inc. have received numerous accolades from third parties including Barron's ranking thinkorswim as one of its top rated online brokers and best for options traders (2006), and Prophet's top Barron's ranking as having the best technical analysis tools (2006).

Explanation and Reconciliation of Non-GAAP Information

The Company believes that sales transaction volume is an important measure of business volume. Sales transaction volume is a non-GAAP financial measure and represents sales in a particular period before the effect of recognition of deferred revenue from prior periods and the deferral of current period sales. It is consistent with the amount of cash receipts from selling activities in the period and with the majority of the components of cost of revenue. The table below provides a reconciliation of sales transaction volume to revenue for the periods indicated:

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The Company believes that Adjusted EBITDA as shown in the table below is a valuable representation of operating performance given the impact of accounting for deferred revenue and for costs associated with deferred revenue. The table below provides a reconciliation of net loss to Adjusted EBITDA for the periods indicated:

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These non-GAAP financial measures may not be comparable to similarly titled measurements used by other companies and should not be used generally as a substitute for revenue, net loss, or other GAAP operating measurements.

The table below provides information on the number of graduates during the periods indicated. The Company defines a graduate as someone who has purchased or attended as a spouse the foundational Stocks or Currency courses.

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The following table outlines the workshop upsell rates during the periods indicated. During the third quarter of 2006, the Company introduced a subscription based Trading Rooms product as an alternative upsell at the workshop.

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Workshop upsell rates are the sales that take place at the workshops of advanced product sales. Upsell rates do not include sales from the Company's other sales operations.

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