ISE Intl Secs Exchange Hldgs

The International Securities Exchange (NYSE:ISE) said that it will list options on sector indexes as described below. Timber Hill LLC will be the Primary Market Maker for these sector index options which will trade in bin 7. Effective Monday, June 6, 2005, ISE will list options on the following: -- ISE Semiconductors (BYT) will trade on a March expiration cycle with exercise and position limits of 24,000. The ISE Semiconductors Index includes manufacturers of semiconductors and related equipment. This index is a modified market capitalization weighted index. Effective Tuesday, June 7, 2005, ISE will list options on the following: -- ISE-CCM Homeland Security (HSX) will trade on a March expiration cycle with exercise and position limits of 24,000. The ISE-CCM Homeland Security Index includes companies engaged in contractual work with the Department of Homeland Security, law enforcement agencies, or providing products or services for the following efforts: intelligence and warning; border and transportation security; domestic counterterrorism; protection of critical infrastructure; defense against catastrophic threats; and, emergency preparedness and response. This index is a modified market capitalization weighted index. The ISE-CCM Homeland Security Index was jointly developed by ISE and Cronus Capital Markets, Inc. (CCM). CCM, an independent and privately owned capital market research and consulting firm, provides specific research and support for the Index. -- ISE Oil and Gas Services (OOG) will trade on a March expiration cycle with exercise and position limits of 31,500. The ISE Oil & Gas Services Index includes oil and gas drilling contractors, equipment manufacturers and suppliers, and service providers involved in drilling, evaluation and completion of oil and gas wells. This index is a modified market capitalization weighted index. Effective Wednesday, June 8, 2005, ISE will list options on the following: -- ISE Gold (HVY) will trade on a March expiration cycle with exercise and position limits of 24,000. The ISE Gold Index includes companies that own or operate gold mines, or are involved in the production of gold and related products. This index is a modified market capitalization weighted index. -- ISE Homebuilders (RUF) will trade on a March expiration cycle with exercise and position limits of 24,000. The ISE Homebuilders Index includes residential construction companies and prefabricated house manufacturers. This index is a modified market capitalization weighted index. "ISE is committed to modernizing the index options market just as it did in the equity options market. The sector indexes represent the extension of ISE's index business into proprietary products that we hope will help investors to better navigate the marketplace," said Bruce D. Goldberg, ISE's Chief Marketing Officer. ISE's index methodologies for the sector indexes are rules-based, making the rules for calculating and maintaining the indexes freely available to everyone, and thus easily used to test the historic performance of the indexes. Additional information about these indexes, including methodology guides component lists and weightings, performance metrics and historical data is available on ISE's website, www.iseoptions.com. ISE Background The International Securities Exchange, the world's largest equity options exchange, was founded on the principle that technology fosters and infuses new efficiencies and operational innovations into securities trading. After developing an innovative market structure that integrated auction market principles into an advanced screen-based trading system, ISE launched the first fully electronic US options exchange in May 2000. ISE continually enhances its trading systems to provide investors with the best marketplace to execute their options orders. For more information about ISE, its products and its technology, visit www.iseoptions.com. Forward Looking Statements This press release contains "forward looking statements." These statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements, to be materially different from those contemplated by the forward looking statements. We undertake no ongoing obligation, other than that imposed by law, to update these statements. Factors that could affect our results, levels of activity, performance or achievements and cause them to materially differ from those contained in the forward looking statements can be found in our filings with the Securities and Exchange Commission, including our registration statement on Form S-1, current reports on Form 8-K and quarterly reports on Form 10-Q, as amended.