ISE Intl Secs Exchange Hldgs

The International Securities Exchange (NYSE: ISE) announced today the introduction of a Second Market that will list approximately 850 additional equity options. The "Second Market" will leverage ISE's existing highly flexible technology and scalable infrastructure. The listing of these equity options classes will double the total number of options classes traded at ISE. Trading is scheduled to begin in the third quarter of 2006, pending SEC approval. "We originally launched ISE with a focus on those equity options that represented 90% of the volume to bring competition to this market. In response to our members' request that we provide competitive, deep markets in these options, we have decided to expand our trading into additional, less liquid issues," said David Krell, President and Chief Executive Officer of ISE. "This will provide our customers with all the advantages they have come to associate with trading on the ISE in our "First Market" and the benefits of a truly competitive marketplace." Options classes traded in the Second Market will comply with existing listing requirements and trade under existing ISE trading rules. Existing market makers will be eligible to make markets in the Second Market, and participation will not require purchasing an additional membership. Market Makers in the Second Market will be given the freedom to choose which options classes they wish to trade and a single monthly access fee will allow them to make markets in all of the options classes in the Second Market. New market makers who have not purchased trading rights in the First Market (CMM Memberships) will be able to make markets in the Second Market without purchasing a trading right. ISE anticipates that this open access structure will attract new market makers for trading in these issues. ISE Background The International Securities Exchange (ISE) is an innovative securities market, founded on the principle that technology and competition create better, more efficient markets for investors. ISE is the largest equity options exchange and is among the leading options exchanges in the world. ISE developed a unique market structure for advanced screen-based trading systems and in May 2000 launched the first fully electronic US options exchange. The ISE Stock Exchange LLC will launch in the third quarter of 2006 with strategic partners, offering an innovative MidPoint Match platform, followed by a fully integrated displayed Best Bid Offer (BBO) market in the fourth quarter. ISE is also a majority owner of Longitude LLC, an innovative platform for events markets trading, and offers enhanced market data products for sophisticated investors. ISE continually enhances its trading systems and develops new products, including index options and market data, to provide investors with the best marketplace and investment tools to trade smarter. For more information about ISE, its options products and its technology, visit www.iseoptions.com and for more information about the ISE Stock Exchange LLC, visit www.isestock.com. Forward Looking Statements Certain matters discussed in this press release are "forward looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. 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 annual report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q, as amended.