ISE Acquires Assets of Longitude; Innovative Derivatives Auction Platform and Technology

The International Securities Exchange (NYSE: ISE)
announced today that it has acquired the intellectual property and
other related assets of Longitude, Inc, inventor of a proprietary and
patented technology that uses parimutuel principles to run derivatives
auctions that aggregate liquidity and produce fair and efficient
market-driven prices.
   The new entity, to be named Longitude LLC, will become an
operating unit of ISE, which will retain majority-ownership in
partnership with Goldman Sachs, which is increasing its pre-existing
minority stake. Terms of the transaction have not been disclosed.
   Since late 2002 Goldman Sachs has used the Longitude platform to
clear risk and build liquidity for a wide range of auction products.
Currently, the products offered include options on economic data in
partnership with the Chicago Mercantile Exchange and options on
certain energy market statistics in partnership with ICAP Energy and
the New York Mercantile Exchange. Upon closing, the new Longitude LLC
will service these existing auction markets.
   "ISE has acquired Longitude, in partnership with Goldman Sachs, to
fulfill our vision of delivering expanded product offerings for the
industry that demonstrate our commitment to growth and innovative
technology," said David Krell, President and Chief Executive Officer
of ISE. "We believe that Longitude's platform complements ISE's
existing infrastructure and technologies and diversifies the suite of
capabilities that we can deliver to the market."
   Longitude's platform facilitates development of event contracts
and other new derivatives contracts. This business will report into
ISE's Corporate Initiatives division, which is headed by Thomas
Ascher, Chief Strategy Officer. Tom Ascher noted that "ISE continues
to embrace new technology to expand our product delivery platform for
innovative derivatives products. We are committed to leveraging
Longitude's proprietary, patented technology to support and build upon
the exciting suite of products which have already been developed."
   Laurie Ferber, Managing Director and head of Goldman Sachs
economic derivatives group, said "As one of the early adopters of
Longitude's unique risk transfer platform, we are excited about the
ISE's commitment to these markets and look forward to working with
them in bringing added innovation to our existing markets and new
outlets. Goldman Sachs is committed to expanding the range of product
offerings available to investors to help them hedge their portfolios
and manage the risks associated with macro-economic events."

   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.

   Goldman Sachs Background 

   Goldman Sachs is leading global investment banking, securities and
investment management firm that provides a wide range of services
worldwide to a substantial and diversified client base that includes
corporations, financial institutions, governments and high net-worth
individuals. Founded in 1869, it is one of the oldest and largest
investment banking firms. The firm is headquartered in New York and
maintains offices in London, Frankfurt, Tokyo, Hong Kong and other
major financial centers around the world. For more information about
Goldman Sachs, please visit www.gs.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.