ISE Announces Relationship with First Trust Advisors to Bring ETFs to Market Based on Three Proprietary ISE Indexes

  
    
  
  
    
      The International Securities Exchange (NYSE: ISE) announced today that 
      it has entered into an agreement with First Trust Advisors L.P., a major 
      investment management firm, to create and list Exchange-Traded Funds 
      (ETFs) on three proprietary ISE indexes. First Trust plans to develop 
      ETFs based on the ISE Water Index (underlying index ticker: HHO), 
      ISE-Revere Natural Gas Index (underlying index ticker: FUM), and ISE 
      ChIndia Index (underlying index ticker: to be determined). Currently in 
      the development stages, the ISE ChIndia Index will include U.S. listings 
      of firms domiciled in China and India. ISE currently lists options on 
      the ISE Water Index and the ISE-Revere Natural Gas Index.
    
    
      Bruce D. Goldberg, ISE’s Chief Marketing 
      Officer, noted, “Our partnership with First 
      Trust to create three ETFs is a significant step as we look to further 
      establish our indexes as sector benchmarks and broaden our index 
      business beyond options trading. We are pleased that investors will now 
      have another vehicle to gain exposure to these specialized industry and 
      emerging market sectors through First Trust’s 
      ETFs.”
    
    
      “First Trust is extremely pleased to team up 
      with ISE in licensing these three unique indexes for the purpose of 
      sponsoring exchange traded funds,” said R. 
      Scott Hall, Managing Director of First Trust Advisors L.P. “We 
      believe each fund provides financial advisors with an attractive 
      investment vehicle for their clients targeting these niche market 
      opportunities.”
    
    
      First Trust has filed for the necessary approvals from the Securities 
      and Exchange Commission and, pending those approvals, expects to list 
      the ETFs in early May. The listing exchange and ticker symbols for the 
      ETFs are to be determined. Additional details regarding each ETF are 
      below:
    
    
      
        First Trust ISE-Revere Natural Gas Index Fund - The Fund will 
        normally invest at least 90% of total assets in common stocks that 
        comprise the ISE-Revere Natural Gas Index, which currently contains 30 
        companies that derive a substantial portion of their revenues from the 
        exploration and production of natural gas. Index eligibility is 
        limited to those companies that have a greater quantity of proven 
        natural gas reserves compared to crude oil. Candidates are also 
        screened against several stock performance metrics and by their 
        correlation to natural gas futures prices.
      
      
        First Trust ISE Water Index Fund - The Fund will normally 
        invest at least 90% of its total assets in common stocks that comprise 
        the ISE Water Index, a modified market cap-weighted portfolio of 36 
        stocks that derive a substantial portion of their revenues from the 
        potable and wastewater industries.
      
      
        First Trust ISE ChIndia Index Fund - The Fund will normally 
        invest at least 90% of its total assets in common stocks that comprise 
        the ISE ChIndia Index. Currently in development, this index will be a 
        modified market cap-weighted portfolio of up to 50 companies domiciled 
        in China or India that are currently trading on U.S. exchanges.
      
    
    
      Additional information about ISE’s portfolio 
      of proprietary sector indexes, including methodology guides, component 
      lists and weightings, performance metrics and historical data, is 
      available on ISE’s website, www.iseoptions.com, 
      on the Products Traded / Index Options page.
    
    
      ISE Background
    
    
      International Securities Exchange Holdings, Inc. (NYSE: ISE), through 
      its subsidiaries, operates a family of innovative securities markets. 
      ISE is founded on the principle that technology and competition create 
      better, more efficient markets for investors and consists of an options 
      exchange, a stock exchange and an alternative markets platform. ISE 
      continually enhances its trading systems and develops new products to 
      provide investors with the best marketplace and investment tools to 
      trade smarter.
    
    
      ISE developed a unique market structure for advanced screen-based 
      trading systems and in May 2000 launched the first fully-electronic US 
      options exchange. Currently, ISE operates the largest U.S. equity 
      options exchange and is among the leading options exchanges in the 
      world. ISE offers index options, including a portfolio of proprietary 
      index products, and enhanced market data products for sophisticated 
      investors. ISE FX Options™ are slated to 
      launch in 2007.
    
    
      ISE Stock Exchange, launched in September 2006 with strategic partners, 
      includes an innovative MidPoint Match™ 
      platform which offers investors continuous price improvement. MidPoint 
      Match was integrated with a fully-displayed Best Bid Offer market in 
      December 2006.
    
    
      ISE’s alternative markets business currently 
      consists of an events market trading platform known as Longitude. 
      Longitude’s patented and proprietary 
      technology provides a unique parimutuel structure for derivatives 
      auctions which results in greater trading and pricing flexibility for 
      market participants.
    
    
      For more information about ISE and its options exchange, visit www.iseoptions.com 
      and for more information about ISE Stock Exchange, visit www.isestock.com. 
      Additionally, to learn more about ISE alternative markets technology, 
      visit www.longitude.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.
    
    
      Investors should consider the investment objectives, risks and charges 
      and expenses of the ETFs carefully before investing. The prospectus for 
      each ETF contains this and other information about each ETF. A 
      prospectus can be obtained by calling First Trust Portfolios L.P. at 
      1-800-621-1675. A prospectus should be read carefully before investing.
    
    
      The information contained herein is not complete and may be changed. The 
      ETFs may not be sold until a registration statement filed with the 
      Securities and Exchange Commission is effective. Nothing herein should 
      be considered an offer to sell the ETFs nor a solicitation of an offer 
      to buy the ETFs in any state where the offer or sale is not permitted.