The present invention provides an electrically variable transmission having two motor/generators, two differential gear sets such as planetary gear sets, and five torque transfer devices arranged to provide improved launch, performance and gradeability, and enabling five fixed speed ratios. An input member is continuously connected to one member (preferably a ring gear) of the first planetary gear set, and an output member is continuously connected to one member (preferably a carrier) of the second planetary gear set. One motor/generator is continuously connected to another member (preferably a sun gear) in the first planetary gear set as well as being selectively connected to a member (preferably a ring gear) of the second planetary gear set. The second motor/generator is continuously connected to the remaining member (preferably a sun gear) of the second planetary gear set, and is selectively connected to the remaining member (preferably a carrier) of the first planetary gear set.