ISE Elects One Board Member; Seven Board Members Re-Elected

The International Securities Exchange (NYSE:ISE) said
today that Sean Flynn of Timber Hill LLC, a subsidiary of Interactive
Brokers LLC, was elected by shareholders to the company's Board of
Directors. Barbara Diamond, James V. Harkness, Mark Kritzman, William
A. Porter, Ivers W. Riley and Richard Schmalensee were re-elected to
serve two-year terms. David Krell, ISE's president and Chief Executive
Officer, was reelected to serve a one-year term. ISE's Board is
comprised of 15 members, six industry directors, eight non-industry
directors and ISE's Chief Executive Officer.
   Mr. Flynn was elected as a representative of ISE's Primary Market
Makers (PMM). His term expires in 2007. He has been an options trader
with Timber Hill LLC since 1997. He is also a member of Interactive
Brokers LLC, Timber Hill's parent company. He graduated from the
University of California at Irvine.
   Ms. Diamond was reelected as a non-industry director. Her term
expires in 2007. She has been a director of ISE since 2000. Ms.
Diamond has been President of BBDiamond, LLC, a management consulting
firm, since 2003. From March 1978 to December 2002, Ms. Diamond served
as President of the Diamond Services Group, Ltd. In addition, from
March 1999 to December 2002, Ms. Diamond conducted market research for
Strategic Market Systems. From 1985 to 1990, Ms. Diamond served as the
North American Representative for the Sydney Futures Exchange. Ms.
Diamond also has been a member of the Sydney Futures Exchange and the
Singapore International Monetary Exchange. Ms. Diamond was a member of
the International Monetary Market, a division of the Chicago
Mercantile Exchange, from 1972 to 1998. Ms. Diamond has a B.S. in
Economics from Elmhurst College.
   Mr. Harkness was reelected as a representative of ISE's
Competitive Market Makers (CMM). His term expires in 2007. He has been
a director of ISE since 2002. Mr. Harkness has been a Managing
Director of Wolverine Trading, LLC and a limited partner of Wolverine
Holdings, L.P. since 1999. From April 1994 to July 1999, Mr. Harkness
was Managing Director of MicroHedge. Mr. Harkness also held trading
and sales positions with Telekurs AG, Market View Software and LaSalle
Arbitrage.
   Mr. Kritzman was reelected as a non-industry director. His term
expires in 2007. He has been a director of ISE since 2000. Mr.
Kritzman is the Chief Executive Officer and owner of Windham Capital
Management LLC. He has held this position since January 2000. In
addition, from 1993 to 2000, Mr. Kritzman served as Managing Partner
of Windham Capital Management Boston, a general partnership. Mr.
Kritzman is also a Senior Partner of State Street Associates, and the
Research Director of CFA Institute's Research Foundation. He also
teaches the Financial Engineering pro-seminar at the Massachusetts
Institute of Technology's Sloan School. From 1986 to 1988, Mr.
Kritzman was General Partner of New Amsterdam Partners and from 1983
to 1986 was Vice President of Bankers Trust Company. Prior to that,
Mr. Kritzman held research positions with AT&T and the Equitable Life
Assurance Society. Mr. Kritzman also has served as a director on
several boards, including The Center for International Securities and
Derivatives Markets, The Fischer Black Memorial Foundation, The
Institute for Quantitative Research in Finance and The International
Association of Financial Engineers. In addition, Mr. Kritzman serves
on several editorial and review boards, including Emerging Markets
Review, the Financial Analysis Journal, the Journal of Alternative
Investments and the Journal Derivatives and the Journal of Investment
Management.
   Mr. Porter was reelected as a representative of ISE's Electronic
Access Members (EAM). His term expires in 2007. He has been a director
of ISE since 2000. Mr. Porter is a co-founder, and was the first
Chairperson, of ISE from 1997 to 2002. Mr. Porter is also Chairperson
Emeritus of E*TRADE, the Managing Member of KAP Group LLC and
Chairperson of the Board of Adirondack Trading Partners LLC, or ATP.
He has been the Chairperson of ATP since 1997. Mr. Porter has held
numerous senior management positions, including Chairperson of
Trelleborg Rubber Company; President of Tretorn Shoes; President of
Commercial Electronics Incorporated. Mr. Porter has a M.S. in
Management from The Massachusetts Institute of Technology, where he
was a Sloan Fellow, a M.S. in Physics from Kansas State College and a
B.A. in Mathematics from Adams State College.
   Mr. Riley was reelected as a non-industry director. His term
expires in 2007. He has served as Chairperson of ISE since May 26,
2002. He has been a director of ISE since 2000. From 1997 until the
end of 2001, he served as a member of the Executive Committee of the
International Options Market Association, where he was formerly
President from 1997 through 1998. From 1994 to 1997, and from 1999 to
2000, Mr. Riley was the Chief Executive Officer of the Hong Kong
Futures Exchange and Chairperson and Chief Executive Officer of the
HKFE Clearing Corporation. From 1986 to 1993, he was Senior Executive
Vice President of the AMEX in charge of all derivatives activity. From
1983 to 1986 he was Executive Vice President of the NYSE in charge of
the options division. Previously, Mr. Riley was a founding partner of
The Options Group. In addition, he was a Senior Vice President of both
PaineWebber and the CBOE.
   Dr. Schmalensee was reelected as a non-industry director. His term
expires in 2007. He has been a director of ISE since 2000. Since
November 1998, Dr. Schmalensee has been the Dean of the Massachusetts
Institute of Technology, Sloan School of Management and a Professor of
Economics and Management. Previously, Dr. Schmalensee served as Deputy
Dean and Interim Dean. Dr. Schmalensee has been a part-time consultant
for LECG, LLC since April 2004 and was a part time consultant for NERA
Economic Consulting from 1991 through March 2004. In addition, Dr.
Schmalensee serves on the Board of Directors of IDG, Inc., and
previously served on the Board of Directors of MFS Investment
Management, from June 2002 to April 2004. From 1989 to 1991, Dr.
Schmalensee was a member of the President's Council of Economic
Advisers. Dr. Schmalensee is a research associate of the National
Bureau of Economic Research, a fellow of the Econometric Society, a
member of the International Academy of Management, and a fellow of the
American Academy of Arts and Sciences. Before joining MIT in 1977, Dr.
Schmalensee was an Associate Professor at the University of
California, San Diego, and has served as a visiting professor at the
Harvard Business School.
   Mr. Krell, who has served as ISE's President and Chief Executive
Officer since 1997, was reelected to serve as CEO Director for another
one-year term. Mr. Krell co-founded ISE in October 1997. From 1997 to
1998, he was Chairperson and co-founder of K-Squared Research, LLC, a
financial services consulting firm. From 1984 to 1997, Mr. Krell was
Vice President, Options and Index Products, of the NYSE. From 1981 to
1984, Mr. Krell was First Vice President at the Chicago Board Options
Exchange. Mr. Krell was also a Vice President at Merrill Lynch from
1978 to 1981 and founded its Managed Options Service. He was a
director on the Board of the International Federation of Technical
Analysts, a President of the Market Technicians Association and a
director on the Board of Directors of The Options Clearing
Corporation, or OCC. Mr. Krell formerly was an Adjunct Professor at
Rutgers University Graduate School of Management and at the Graduate
School of Baruch College. He has taught coordinated and directed
seminars and workshops at the New York Institute of Finance.

   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.