E-LOAN, Inc. Reports Second Quarter Results and Comments on Merger

PLEASANTON, CA – E-LOAN, Inc. (Nasdaq: EELN), an online consumer direct lender, today reported results for the second quarter ended June 30, 2005.

Overview of Results

• Net income for the second quarter of 2005 was $400 Thousand or $0.01 per share on 68 million diluted shares.
• Total revenue of $40 million, up 19% from Q2 2004.
• Diversified revenue — comprising total revenue, excluding prime refinance mortgage — was $29 million, up 24% from Q2 2004, which accounted for 73% of E-LOAN’s total revenue in Q2 2005.
• Home Equity revenue was $14 million, up 45% from Q2 2004. Home equity sold loan volume and revenue per loan increased 5% and 48%, respectively, in the quarter compared to Q2 2004.
• Diversified mortgage revenue — comprising purchase and non-prime mortgage — was $10.5 million, up 9% from the second quarter of 2004. Diversified mortgage revenue per loan decreased 1% in the quarter compared to Q2 2004, while the sold loan volume increased by 8% compared to Q2 2004.
• Refinance mortgage revenue was $10.7 million, up 9% from Q2 2004. Refinance mortgage sold loan volume decreased 11% in the quarter compared to Q2 2004, offset by a 22% increase in revenue per loan compared to Q2 2004.
• Direct margin — defined as revenue minus variable and fixed operations expense — was $20.6 million, up 20% from Q2 2004.
• Marketing expense totaled $14.6 million, up 16% from Q2 2004.
• Cash balance of $63 million.

Merger Agreement
On August 3, 2005, Popular, Inc. (Nasdaq: BPOP), the leading financial institution in Puerto Rico, and E-LOAN, Inc. announced the signing of a definitive merger agreement under which Popular, Inc. will acquire 100 percent of the issued and outstanding shares of common stock and common stock equivalents of E-LOAN, Inc. for $4.25 per share in cash, or approximately $300 million. The transaction, which was unanimously approved by the boards of directors of both companies, is subject to E-LOAN, Inc. shareholder approval and is expected to close in the fourth quarter of 2005.

Revenues
E-LOAN’s revenues are primarily from the gain on sale of first mortgage, home equity and auto loans that we originate, fund and then sell. We also earn interest income on mortgage and home equity loans from the time of funding through the time of sale.

Conference Call and Webcast
Mark Lefanowicz, Chief Executive Officer and President, will host a conference call to discuss the company’s second quarter 2005 financial results today, August 9 at 7:30 a.m. (PDT). Please dial 630-395-0018 at 7:25 a.m. (PDT) and reference pass code “E-LOAN.” A replay of the call will be available after 9:00 a.m. (PDT) on August 9, 2005 until 11:59 p.m. (PDT), August 16, 2005. The replay may be accessed by dialing 203-369-1279. A live webcast and replay of the conference call will be available via the investor relations section of the company’s website at www.eloan.com.

About E-LOAN
E-LOAN® is an online consumer direct lender dedicated to providing borrowers with a Radically Simple(SM) way to obtain mortgage, auto and home equity loans. Since its launch in 1997, E-LOAN has drawn upon its pro consumer values to improve the lending experience in revolutionary ways. By eliminating the traditional incentive structure to charge consumers higher rates, giving consumers free access to credit scores and getting rid of lender fees, E-LOAN is providing a uniquely open, fair and honest loan process. Protecting consumers’ financial privacy is also a paramount concern, prompting E-LOAN to implement industry leading privacy practices and advocate strong consumer financial privacy protection laws. Consumers have recognized E- LOAN’s trustworthiness and respect for customers. An independent study conducted by TRUSTe and The Ponemon Institute ranked E-LOAN as one of the top 20 most trusted companies for privacy in America. E-LOAN was the highest ranked online financial services company to make the top 20. In another independent study by The Customer Respect Group, E-LOAN received the overall highest rating in the Online Customer Respect Study of North America’s largest financial services firms.