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NetBank & Ameritrade Announce Strategic Alliance.

Business Editors


E-Commerce Leaders Partner to Promote

Each Other's Products to New and Existing Customers

NetBank(R), Member FDIC (NASDAQ: NTBK; a world leader in Internet banking, and Ameritrade Holding Corporation (Nasdaq: AMTD), today announced an innovative strategic alliance that will offer reciprocating services to the customers of both organizations. NetBank will offer banking services to Ameritrade's more than 1 million brokerage customers, and Ameritrade Holding Corporation, through its subsidiary AmeriVest, Inc., will offer brokerage services to NetBank's rapidly growing customer base.

Under the agreement, each new Ameritrade applicant will have the opportunity to apply for a NetBank checking account without having to enter any additional information. As an incentive, approved applicants will be paid a bonus for funding their new NetBank accounts. In a separate marketing effort, Ameritrade's existing customers will be offered a similar incentive.

Additionally, NetBank customers will be offered discount brokerage services through AmeriVest with no account setup or maintenance fees, and automatic transfer of idle cash from their brokerage account to their FDIC-insured, high-interest NetBank checking account.

"We're excited to be working with a leading, fast-growing, customer-oriented company," said D.R. Grimes, NetBank chief executive officer. "This agreement allows NetBank to market to a huge community of online consumers whose profile is very similar to NetBank's own customers'-- financially active online, high-balance customers who desire greater control over managing their money. Additionally, NetBank customers will be able to invest through one of the world's leading online brokerages directly from their personal financial portal at NetBank."

Grimes also pointed out that the bank's agreement with Ameritrade further demonstrates the execution of NetBank's plan to maintain low account acquisition costs. "Our account acquisition costs are already among the lowest in the industry," said Grimes. "Pay-for-performance programs through affiliate partners are a proven approach to attracting customers at relatively low costs and a powerful complement to our effective online advertising."

"This alliance between Ameritrade and NetBank benefits customers of both companies," said Tom Lewis, CEO of Ameritrade Holding Corporation. "Ameritrade's customers will have convenient access to NetBank's compelling line of insured, high-yield, low-fee banking products. Both companies will strengthen customer acquisition and retention by offering an attractive and compelling suite of financial services."

"Ameritrade's partnership with NetBank is another example of our `focused and deep' business strategy providing high-quality services through best-in-class alliances," added Lewis.

Implementation of the program to Ameritrade customers begins in August. NetBank plans to launch its new brokerage offering to customers during its third quarter.

About Ameritrade

Ameritrade Holding Corporation ( is a pioneer of the online brokerage industry with a 25-year history of providing a customer-focused approach to brokerage services. The Company provides brokerage services and clearing services to self-directed individual consumer investors and to financial institutions through its subsidiaries. Subsidiaries of Ameritrade Holding include: Ameritrade, Inc. (, a leading online brokerage firm and one of only two firms to receive Money magazine's highest five-star rating for overall performance+; Accutrade, Inc. (, a brokerage delivering superior levels of personal service and support to its clients; AmeriVest, Inc. (, a provider of third-party brokerage services and other financial services to commercial banks, credit unions and thrift institutions; Advanced Clearing, Inc. (, a securities clearing firm providing clearing services to each subsidiary as well as other financial institutions.

+ Best Online Brokers, June 2000

About NetBank(R)

NETBANK, Inc, (NASDAQ: NTBK;, is a financial services company whose sole subsidiary, NetBank, member FDIC, is the first profitable pure Internet bank in the country, having achieved profitability in the past nine successive quarters. With more than $1.5 billion in assets and customers in all 50 states and 20 foreign countries, NetBank was recently ranked as a pick for "Best Online Banks." With its low-cost, branchless business model, NetBank is able to reward its customers with high interest rates on deposits with low- or no-fee banking services. Products and services include free online account access, free checking, free unlimited online bill payment and presentment, free checks, free unlimited ATM use, online brokerage services, mortgage lending, home equity lines and loans, IRAs, insurance, online safe deposit boxes, and business equipment leasing services. NetBank is a member of the AFFN, Cirrus, Honor/Star, and NYCE ATM Networks. For more information on NetBank, its products and services, visit the Web site at, or call 1-888-BKONWEB (256-6932).

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding NetBank's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
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Publication:Business Wire
Geographic Code:1USA
Date:Aug 1, 2000
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