1 3Q 2003 Earnings July 22, 2003

2 Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws. In particular, any expectations regarding additional synergies to be realized from the merger of Ameritrade and Datek, the effect of our acquisition of Mydiscountbroker.com accounts, the modification of our systems and technology, any reductions in the number of employees, and any projections regarding our future revenues, expenses, earnings, capital expenditures or activity rates are forward- looking statements. These statements reflect only our current expectations and are not guarantees of future performance or results. These statements involve risks, uncertainties and assumptions that could cause actual results or performance to differ materially from those contained in the forward-looking statements. These risks, uncertainties and assumptions include the successful integration of the operations of Ameritrade and Datek, operational cost savings resulting from the merger of Ameritrade and Datek, market fluctuations and changes in client trading activity, general economic conditions, increased competition, regulatory and legal matters and uncertainties and other risk factors described in our latest Annual Report on Form 10-K. These forward-looking statements speak only as of the date on which the statements were made. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

3 GAAP Reconciliation During this presentation, references to financial measures of the Company will include references to non-GAAP financial measures such as operating margin, EBITDA, liquid assets and operating expenses (adjusted). A complete reconciliation between GAAP and non-GAAP financial measures can be found on slides 13 and 14.

4 3Q ’03 Highlights 154K TPD Record net income $50M, or $0.12 EPS Record operating margin* $98M, or 52% Record pre-tax income $82M, or 43% Record EBITDA* $91M *See attached reconciliation of financial measures

5 Power of Operating Leverage & Scale-On- Demand vs. 2Q ’03: TPD 33% Operating Margin* 158% EPS 500% *See attached reconciliation of financial measures

6 $193 Q2 Updated Estimate *Baseline is CY2001 Datek Merger Pre-Tax Operating Synergies (Run Rate) (In millions, excluding advertising) $164 Original Estimate* $220 Q3 Realized $233 Q4 Forecast

7 Total Equity Trades *Schwab June trades are estimates by Putnam Lovell, June 17, AMTD SCH ET Waterhouse (In millions)

8 $0.02 $0.12 March ’03 Quarter $0.04 Synergies $0.01 Advertising & Tax Rate $0.05 Operating Leverage 28% Increase in Revenues 500% Increase in EPS June ’03 Quarter Earnings per share

9 $73.4 June ’02 Quarter (Actual) $4.2 Amort.* $13.2 Variable Costs Operating Expenses (Adjusted)** $2.0 Non- recurring (merger related) $90.2 June ’03 Quarter (Actual) $85.0 $5.2 Additional synergies/ Elim. non- recurring Sept ’03 Quarter (Forecast) *Deal-related amortization of intangible value of client lists and non-compete clauses $2.6 Fixed cost reduction (in millions) All of the Datek revenues, virtually none of the fixed costs **See attached reconciliation of financial measures

10 Synergies (Quarters Annualized) (In millions of dollars) (Forecast)

11 Clean Balance Sheet Total Debt excludes liability associated with prepaid forward contract. *See attached reconciliation of financial measures

12 Sensitivity Analysis (1) Represents nine months ended June 27, 2003 (2) Assumes advertising spend of $15 million for July - Sept 2003 quarter

13 Reconciliation of Financial Measures In thousands, except percentages

14 Reconciliation of Financial Measures, cont. In thousands, except percentages

15 Reconciliation of Financial Measures, cont. Note: The term "GAAP" in the following explanations refers to generally accepted accounting principles in the United States. (1) Operating margin is considered a Non-GAAP financial measure as defined by SEC Regulation G. We define operating margin as pre-tax income, adjusted to remove advertising expense and any unusual gains or charges. We believe operating margin provides an important measure of the financial performance of our ongoing business. Advertising spending is excluded from operating margin because it is largely at the discretion of the Company, varies significantly from period to period based on market conditions and relates to the acquisition of future revenues through new accounts rather than current revenues from existing accounts. Unusual gains and charges are excluded from operating margin because we believe they are not likely to be indicative of the ongoing operations of our business. Operating margin should be considered in addition to, rather than as a substitute for, pre-tax income and net income. (2) EBITDA (earnings before interest, taxes, depreciation and amortization) is considered a Non-GAAP financial measure as defined by SEC Regulation G. We consider EBITDA an important measure of our financial performance and of our ability to generate cash flows to service debt, fund capital expenditures and fund other corporate investing and financing activities. EBITDA eliminates the non-cash effect of tangible asset depreciation and intangible asset amortization. EBITDA should be considered in addition to, rather than as a substitute for, pre-tax income, net income and cash flows from operating activities. (3) Operating expenses (adjusted) is considered a Non-GAAP financial measure as defined by SEC Regulation G. We define operating expenses (adjusted) as total expenses, adjusted to remove advertising expense and any unusual gains or charges. We believe operating expenses (adjusted) provide an important measure of the financial performance of our ongoing business. Advertising spending is excluded from operating expenses (adjusted) because it is largely at the discretion of the Company, varies significantly from period to period based on market conditions and relates to the acquisition of future revenues through new accounts rather than current revenues from existing accounts. Unusual gains and charges are excluded from operating expenses (adjusted) because we believe they are not likely to be indicative of the ongoing operations of our business. Operating expenses (adjusted) should be considered in addition to, rather than as a substitute for, total expenses.

16 Reconciliation of Financial Measures, cont. (4) Volume-adjusted operating expenses is considered a Non-GAAP financial measure as defined by SEC Regulation G. We define volume-adjusted operating expenses as total expenses, adjusted to remove advertising expense, any unusual gains or charges and the variable cost effect of trading volume differences between periods. We believe volume- adjusted operating expenses provide an important measure of the financial performance of our ongoing business. Advertising spending is excluded from volume-adjusted operating expenses because it is largely at the discretion of the Company, varies significantly from period to period based on market conditions and relates to the acquisition of future revenues through new accounts rather than current revenues from existing accounts. Unusual gains and charges are excluded from volume-adjusted operating expenses because we believe they are not likely to be indicative of the ongoing operations of our business. The variable cost effect of trading volume differences is removed from the current period to enhance comparability to previous periods. Volume-adjusted operating expenses should be considered in addition to, rather than as a substitute for, total expenses. (5) Liquid assets is considered a Non-GAAP financial measure as defined by SEC Regulation G. We define liquid assets as the sum of a) non broker-dealer cash and cash equivalents, b) the market value, net of tax, of our investment in Knight Trading Group, Inc. that is not subject to a prepaid variable forward contract for future sale and c) regulatory net capital of our broker-dealer subsidiaries in excess of 5% of aggregate debit items. We consider liquid assets an important measure of our liquidity and of our ability to fund corporate investing and financing activities. Liquid assets should be considered in addition to, rather than as a substitute for, cash and cash equivalents.

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