ISE Intl Secs Exchange Hldgs

The International Securities Exchange (NYSE: ISE) today announced its intent to create and list new foreign currency options, called ISE FX Options(TM). With ISE FX Options, retail and institutional investors will have a new investment strategy that allows them to express their views on the strength or weakness of the U.S. Dollar relative to foreign currencies. Similar to existing equity and index options products, these securities will trade in U.S. Dollars and will be readily available through traditional securities brokerage accounts. ISE expects trading in ISE FX Options to begin in the first quarter of 2007, pending regulatory approvals. David Krell, ISE's President and Chief Executive Officer, said, "We are pleased to expand the range of asset classes available to investors at ISE through the introduction of ISE FX Options. This innovative new offering furthers our goal to create differentiated products that are tailored to meet marketplace demand and that support smarter, more efficient trading." ISE will initially list the following four currency pairs: USD/EUR, USD/GBP, USD/JPY, and USD/CAD. All ISE FX Options will have U.S. Dollar-based underlying values, which will be scaled as needed to create an underlying value similar to traditional equity or index options. For example, if the current USD/EUR rate is .7852, the underlying value for the USD/EUR ISE FX Option would be 78.52. This format will allow investors to easily adopt the trading strategies they currently use for equity and index options. All products will be cash-settled, which eliminates the need for investors to hold the actual foreign currency. ISE has signed an agreement with Reuters, a leader in the foreign exchange marketplace, to provide the underlying data for ISE FX Options. Reuters' dealing community is among the largest in the world, allowing it to provide ISE with comprehensive and accurate data to support ISE FX Options. ISE will offer a new type of market maker membership class for quoting in ISE FX Options. This membership will provide the opportunity for both existing ISE members as well as new firms to electronically trade ISE FX Options in a low-cost environment. Electronic Access Members (EAMs) will be able to trade this new innovative product using their current memberships. Interactive Brokers, currently a primary market maker on the ISE options exchange, will become a market maker in the new ISE FX Options product through its Timber Hill subsidiary. "As usual, ISE continues to further the advancement of electronic trading and Interactive Brokers fully supports these efforts. The new cash-settled currency options are a first for listed electronic trading, and will be welcomed as a complementary product for those traders who already trade the cash and futures forex markets electronically," said Steve Sanders, Managing Director for Business Development at Interactive Brokers. ISE Background The International Securities Exchange, LLC (ISE), a wholly-owned subsidiary of International Securities Exchange Holdings, Inc. (ISE Holdings), 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 launched in September 2006 with strategic partners and offers an innovative MidPoint Match platform, which will be followed by a fully integrated displayed Best Bid Offer (BBO) market in the fourth quarter. ISE Holdings is also a majority owner of Longitude LLC, an innovative platform for events markets trading. Additionally, ISE 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. About Interactive Brokers Interactive Brokers provides professional traders and investors with direct access to stocks, options, futures, bonds, and forex on over 60 market centers worldwide from a single IB Universal Account. With consolidated equity capital that exceeds US $2.5 billion, IB and its affiliates execute in excess of 500,000 trades/day and trade 22% of US equity options. In 2006 Barron's awarded Interactive Brokers its top star ranking overall and for lowest cost broker. For more information, please see the Interactive Brokers Web site at www.InteractiveBrokers.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.