TRANSACTION VALUATION⁽¹⁾

AMOUNT OF FILING FEE⁽²⁾

  $1,890,000,000.00

Three Months Ended

—June 30,—

%

Change

Six Months Ended

—June 30,—

%

Change

Financial Highlights

Net revenues (in millions) ⁽¹⁾

Net income (in millions)

Diluted earnings per share

Pre-tax profit margin ⁽¹⁾

Return on stockholders’ equity

⁽¹⁾

From continuing operations. Amounts have been adjusted to summarize the impact of the sale of U.S. Trust Corporation, which was completed on July 1, 2007, in income from discontinued operations.

Q2- 07% change

(In millions, except per share amounts and as noted)

vs.

Q2-06

vs.

Q1-07

Second

Quarter

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

Net Revenues ⁽¹⁾

Asset management and administration fees

Net interest revenue

Trading revenue

Other ⁽²⁾

Total net revenues

Expenses Excluding Interest ⁽¹⁾

Compensation and benefits

Professional services

Occupancy and equipment

Advertising and market development

Communications

Depreciation and amortization

Other

Total expenses excluding interest

Income from continuing operations before taxes on income

Taxes on income ⁽¹⁾

Income from continuing operations

Income from discontinued operations, net of tax

Net Income

Basic earnings per share

Diluted earnings per share

Dividends declared per common share

Weighted-average common shares outstanding - diluted

Performance Measures

Pre-tax profit margin from continuing operations ⁽¹⁾

Annualized return on stockholders’ equity

Financial Condition (at quarter end, in billions)

Cash and investments segregated ⁽³⁾

Receivables from brokerage clients

Loans to banking clients ⁽³⁾

Total assets

Deposits from banking clients ⁽³⁾

Payables to brokerage clients

Long-term debt ⁽³⁾

Stockholders’ equity

Other

Full-time equivalent employees (at quarter end, in thousands) ^{(3, 4)}

Annualized net revenues per average full-time equivalent employee (in thousands) ^{(1, 3, 5)}

Capital expenditures - cash purchases of equipment, office facilities, and property, net (in millions) ^{(3, 6)}

Clients’ Daily Average Trades (in thousands)

Revenue trades ⁽⁷⁾

Schwab Investor Services ^{(8, 9)}

Schwab Institutional ^®

Schwab Corporate and Retirement Services ⁽⁹⁾

Total

Average Revenue Per Revenue Trade ⁽⁷⁾

Executive Vice President and

Chief Financial Officer

Offer to Purchase dated July 3, 2007.

Form of Letter of Transmittal.

Form of Notice of Guaranteed Delivery.

Form of Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.

Form of Letter to Clients for use by Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.

Press Release dated July 2, 2007, incorporated by reference to the Company’s Statement on Schedule TO filed July 2, 2007.

Summary Advertisement published in The Wall Street Journal on July 3, 2007.

Form of Letter to Participants in The SchwabPlan Retirement Savings and Investment Plan Holding Units of the 401(k) Equity Unit Fund.

Form of Letter to Participants in The SchwabPlan Retirement Savings and Investment Plan Holding Units of the ESOP Equity Unit Fund.

Form of Memo to Equity Plan Participants.

Form of Letter to Clients of Charles Schwab.

Participants in The SchwabPlan Retirement Savings and Investment Plan – Questions and Answers.

Charles Schwab Stock Tender Offer – General Employee Questions and Answers.

Charles Schwab Stock Tender Offer – Internal Use Questions and Answers.

Voice Response and Website Announcement for The SchwabPlan Retirement Savings and Investment Plan.

Not applicable.

Not applicable.

Registration Rights and Stock Restriction Agreement, dated as of March 31, 1987, between the Company and the holders of the Common Stock, filed as Exhibit 4.23 to the Company’s Registration Statement No. 33-16192 on Form S-1 and incorporated herein by reference.

Restatement of Assignment and License, as amended January 25, 1988, among Charles Schwab & Co., Inc., Charles R. Schwab and the Company, filed as Exhibit 10.72 to the Company’s Form 10-K for the year ended December 31, 2004 and incorporated herein by reference.

Trust Agreement under the Charles Schwab Profit Sharing and Employee Stock Ownership Plan, effective November 1, 1990, dated October 25, 1990, filed as Exhibit 10.87 to the Company’s Form 10-K for the year ended December 31, 2005 and incorporated herein by reference.

First Amendment to the Trust Agreement under the Charles Schwab Profit Sharing and Employee Stock Ownership Plan, effective January 1, 1992, dated December 20, 1991, filed as Exhibit 10.101 to the Company’s Form 10-K for the year ended December 31, 2006 and incorporated herein by reference.

Second Amendment to the Trust Agreement for the Charles Schwab Profit Sharing and Employee Stock Ownership Plan effective July 1, 1992, dated June 30, 1992, filed as Exhibit 10.116 to the Company’s Form 10-Q for the quarter ended June 30, 2002 and incorporated herein by reference.

Third Amendment to the Trust Agreement for the Charles Schwab Profit Sharing and Employee Stock Ownership Plan effective January 1, 1996, dated May 8, 1996 filed as Exhibit 10.169 to the Company’s Form 10-Q for the quarter ended June 30, 2002 and incorporated herein by reference.

Fourth Amendment to the Trust Agreement for the Charles Schwab Profit Sharing and Employee Stock Ownership Plan effective January 1, 1998, filed as Exhibit 10.202 to the Company’s Form 10-K for the year ended December 31, 2003 and incorporated herein by reference.

The Charles Schwab Corporation Employee Stock Incentive Plan, restated and amended as of September 20, 2001 (supersedes Exhibit 10.190), filed as Exhibit 10.226 to the Company’s Form 10-K for the year ended December 30, 2006 and incorporated herein by reference.

The Charles Schwab Corporation 1987 Stock Option Plan, amended and restated as of September 25, 2002, with form of Non-Qualified Stock Option Agreement attached (supersedes Exhibit 10.222), filed as Exhibit 10.242 to the Company’s Form 10-K for the quarter ended September 30, 2002 and incorporated herein by reference.

The Charles Schwab Corporation 1987 Executive Officer Stock Option Plan, amended and restated as of September 25, 2002, with form of Non-Qualified Stock Option Agreement attached (supersedes Exhibit 10.223), filed as Exhibit 10.243 to the Company’s Form 10-Q for the quarter ended September 30, 2002 and incorporated herein by reference.

The Charles Schwab Corporation 1992 Stock Incentive Plan, amended and restated as of September 25, 2002 (supersedes Exhibit 10.224), filed as Exhibit 10.244 to the Company’s Form 10-Q for the quarter ended September 30, 2002 and incorporated herein by reference.

The Charles Schwab Corporation 2001 Stock Incentive Plan, restated to include amendments through May 2003 (supersedes Exhibit 10.248), filed as Exhibit 10.251 to the Company’s Form 10-Q for the quarter ended June 30, 2003 and incorporated herein by reference.

The Charles Schwab Corporation Long-Term Incentive Plan, filed as Exhibit 10.252 to the Company’s Form 10-Q for the quarter ended June 30, 2003 and incorporated herein by reference.

Employment Agreement dated as of March 31, 2003 between the Company and Charles R. Schwab (supersedes Exhibit 10.149), filed as Exhibit 10.253 to the Company’s Form 10-Q for the quarter ended June 30, 2003 and incorporated herein by reference.

The Charles Schwab Corporation Deferred Compensation Plan II, effective December 9, 2004, filed as Exhibit 10.264 to the Company’s Form 10-K for the year ended December 31, 2004 and incorporated herein by reference.

The Charles Schwab Corporation Directors’ Deferred Compensation Plan II, effective December 9, 2004, filed as Exhibit 10.265 to the Company’s Form 10-K for the year ended December 31, 2004 and incorporated herein by reference.

Form of Notice and Restricted Stock Agreement for Non-Employee Directors Under The Charles Schwab Corporation 2004 Stock Incentive Plan, filed as Exhibit 10.266 to the Company’s Form 10-K for the year ended December 31, 2004 and incorporated herein by reference.

Form of Notice and Restricted Stock Unit Agreement for Non-Employee Directors Under The Charles Schwab Corporation 2004 Stock Incentive Plan, filed as Exhibit 10.267 to the Company’s Form 10-K for the year ended December 31, 2004 and incorporated herein by reference.

Form of Notice and Stock Option Agreement for Non-Employee Directors Under The Charles Schwab Corporation 2004 Stock Incentive Plan, filed as Exhibit 10.268 to the Company’s Form 10-K for the year ended December 31, 2004 and incorporated herein by reference.

Form of Notice and Non-Qualified Stock Option Agreement Under The Charles Schwab Corporation 2004 Stock Incentive Plan, filed as Exhibit 10.269 to the Company’s Form 10-K for the year ended December 31, 2004 and incorporated herein by reference.

Form of Notice and Restricted Stock Agreement Under The Charles Schwab Corporation 2004 Stock Incentive Plan, filed as Exhibit 10.270 to the Company’s Form 10-K for the year ended December 31, 2004 and incorporated herein by reference.

The Charles Schwab Corporation Directors’ Deferred Compensation Plan, as amended through December 8, 2004 (supersedes Exhibit 10.215), filed as Exhibit 10.271 to the Company’s Form 10-K for the year ended December 31, 2004 and incorporated herein by reference.

The Charles Schwab Corporation Deferred Compensation Plan, as amended through December 8, 2004 (supersedes Exhibit 10.257), filed as Exhibit 10.272 to the Company’s Form 10-K for the year ended December 31, 2004 and incorporated herein by reference.

The Charles Schwab Corporation Corporate Executive Bonus Plan, restated to include amendments approved at the Annual Meeting of Stockholders on May 19, 2005 (supersedes Exhibit 10.240), filed as Exhibit 10.277 to the Company’s Form 10-Q for the quarter ended June 30, 2005 and incorporated herein by reference.

The Charles Schwab Corporation 2004 Stock Incentive Plan, restated to include amendments approved at the Annual Meeting of Stockholders on May 19, 2005 (supersedes Exhibit 10.259), filed as Exhibit 10.278 to the Company’s Form 10-Q for the quarter ended June 30, 2005 and incorporated herein by reference.

Form of Notice and Premium-Priced Stock Option Agreement under The Charles Schwab Corporation 2004 Stock Incentive plan, filed as Exhibit 10.282 to the Company’s Form 10-Q for the quarter ended September 30, 2005 and incorporated herein by reference.

The Charles Schwab Severance Pay Plan, as Amended and Restated Effective January 1, 2006, including Amendment Numbers 1 and 2 (supersedes Exhibit 10.260), filed as Exhibit 10.284 to the Company’s Form 10-K for the year ended December 31, 2005 and incorporated herein by reference.

Amendment to The Charles Schwab Corporation Long Term Incentive Plan, filed as Exhibit 10.285 to the Company’s Form 10-K for the year ended December 31, 2005 and incorporated herein by reference.

Form of Notice and Restricted Stock Agreement for Walter W. Bettinger under The Charles Schwab Corporation 2004 Stock Incentive Plan dated February 20, 2007, filed as Exhibit 10.289 to the Company’s Form 10-Q for the quarter ended March 31, 2007 and incorporated herein by reference.

Summary of Non-Employee Director Compensation (supersedes Exhibit 10.274), filed as Exhibit 10.290 to the Company’s Form 10-Q for the quarter ended March 31, 2007 and incorporated herein by reference.

Stock Purchase Agreement by and among the Company, Charles R. Schwab, Helen O. Schwab, The Charles & Helen Schwab Living Trust, HOS Family Partners, LLC, 188 Partners LP, and the Charles & Helen Schwab Foundation, dated as of July 2, 2007.

The Charles Schwab Corporation Employee Stock Purchase Plan filed as Exhibit 99.1 to the Company’s Registration Statement No. 333-144303 on Form S-8 and incorporated herein by reference.

Not applicable.

Not applicable.