E-LOAN Announces $651 million Auto Loan Sale

PLEASANTON, CA – E-LOAN® (Nasdaq: EELN), an online consumer direct lender, today announced that on March 30, 2005 a major financial institution purchased substantially all of the auto loans held by E-LOAN Auto Fund One, LLC, a qualified special purpose entity of E-LOAN, Inc. The unpaid principal balance of these loans totaled approximately $651 million. E-LOAN, Inc. received net cash proceeds from this transaction of approximately $15 million and will record a first quarter 2005 gain on this transaction of approximately $2.5 million. The gain represents the excess of total proceeds received over the carrying value of E-LOAN, Inc.’s retained interest in the purchased auto loans.

“Recent strong capital markets demand for auto loans enabled this transaction and resulting gain,” said Mark Lefanowicz, President and Chief Executive Officer of E-LOAN, Inc. “While no formal decision has been made, the $15 million cash infusion provides flexibility to pursue options such as loan securitizations or a potential repurchase of our common stock.”

E-LOAN, Inc. will continue to fund vehicle loans under its existing vehicle warehouse line of credit and will continue to sell funded loans to whole loan purchasers for cash. While the specific credit facility used to fund E-LOAN Auto Fund One’s purchase of vehicle loans from E-LOAN, Inc. terminated on March 30, 2005 with the closing of this transaction, E-LOAN, Inc. intends to enter into a new credit facility agreement by the middle of April 2005. E-LOAN Auto Fund One retained approximately $2.1 million in assets, predominantly delinquent and nonperforming vehicle loans (net of allowances for loan losses). Effective March 30, 2005, E-LOAN Auto Fund One became a consolidated subsidiary of E-LOAN, Inc.