Schwab Makes Education Grants to Foster Continued Development of Independent RIA Industry

SAN FRANCISCO, Oct. 3 /PRNewswire-FirstCall/ -- Charles Schwab Foundation has pledged $1.25 million in charitable contributions to Texas Tech University and the University of California at Irvine to support and promote financial planning education for the next generation of professionals.

Since 1987, Schwab Institutional division has provided services to help independent Registered Investment Advisors (RIAs) grow their businesses and help their clients achieve their financial goals. Today Schwab Institutional is a leading provider of custodial, operational and trading support for more than 5,000 independent RIAs.

A $1 million pledge to the Division of Personal Financial Planning at Texas Tech University in Lubbock, Texas, will be used to build a modern teaching facility and support a PhD student or post-doctoral researcher. The teaching "lab", combined with the largest collection of professional software in any financial planning program in the United States, is expected to establish a new standard for entry-level professionals graduating from higher education financial planning programs. The research scholar will become involved in financial planning industry projects on such diverse topics as retirement planning, behavioral finance and financial planning for health care issues.

At UC Irvine, a $250,000 pledge will be used by the Center for Investment and Wealth Management at the Paul Merage School of Business to award two graduate student fellowships each year for the next five years beginning with the 2007-2008 academic year.

According to Charles Goldman, executive vice president of Schwab Institutional, "Independent advisors' practices are growing so rapidly that there is a significant, increased demand for qualified people. We are investing back into the industry by making donations to these fine schools so that they can educate a larger next generation of capable advisors."

Goldman noted that at the end of 2006, nearly 16,500 independent RIAs managed $2.1 trillion of U.S. wealth. Between 2001 and 2006, RIA assets grew by 66% and the number of RIA firms grew by 33%.

Neither Texas Tech University nor University of California at Irvine are affiliated with The Charles Schwab Corporation.

On October 28-31, Schwab Institutional will host IMPACT(R) 2007, the largest annual event in the country for independent investment advisors. The event will be held at the Mandalay Bay Convention Center in Las Vegas, Nevada. More information on IMPACT 2007 is available at http://www.impact.schwab.com.

About Schwab Institutional

Schwab Institutional is a leading provider of custodial, operational and trading support for independent investment advisors. Since 1987, Schwab Institutional has supported independent investment advisors by offering support and services to help grow their businesses and help their clients reach their financial goals. As of June 30, 2007, client assets custodied with Schwab Institutional stood at $556 billion. These assets, managed by the approximately 5,000 independent advisor firms Schwab Institutional currently serves, represent approximately one-third of total client assets custodied with The Charles Schwab Corporation. Brokerage products offered by Schwab Institutional are not FDIC insured, are not guaranteed deposits, and are subject to investment risk, including the possible loss of principle invested. Schwab Institutional is a division of Charles Schwab & Co., Inc.

About Charles Schwab Foundation

Funded by The Charles Schwab Corporation, Charles Schwab Foundation is committed to giving back to the community by supporting employee-selected causes and fostering financial literacy through funding, involvement and expertise.

About Charles Schwab

The Charles Schwab Corporation (NASDAQ: SCHW) is a leading provider of financial services, with more than 300 offices and 6.9 million client brokerage accounts, 1.2 million corporate retirement plan participants, 200,000 banking accounts, and $1.4 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Schwab Institutional division. The Charles Schwab Bank, N.A. (member FDIC) provides banking and mortgage services and products. CyberTrader(R), Inc. (member SIPC, http://www.sipc.org) is an electronic trading technology and brokerage firm providing services to highly active, online traders. More information is available at http://www.schwab.com. (1007- 1435)