ISE Reports Monthly Volume for July 2006; Average Daily Volume of 2.3 Million Contracts, Up 32.5% from July 2005

The International Securities Exchange (NYSE:ISE) today
reported that average daily trading volume for equity and index
options contracts for July 2006 increased 32.5% to 2.3 million
contracts as compared to 1.7 million contracts during the same period
in 2005. Total equity and index options volume for the month increased
32.5% to 45.9 million contracts from 34.6 million contracts in the
same year-ago period.
   On a year-to-date basis, average daily trading volume of equity
and index options increased 41.7% to 2.4 million contracts traded as
compared to 1.7 million contracts traded in the prior year. Total
equity and index volume through July 2006 increased 41.7% to 345.4
million contracts from 243.8 million contracts in the same period last
year.
   Our average daily trading volume continues to be negatively
impacted by trading activity related to dividend trades among certain
options market makers. These trades temporarily inflate and distort
trading volume and market share when transacted. If the volume from
the largest dividend trades were excluded from the data, our market
share of equity options for the month of July would increase to 32.6%
from 32.4%, an increase of 0.2 market share points. On a year-to-date
basis, our market share would increase to 33.4% from 32.3%, an
increase of 1.1 market share points, if the volume from the largest
dividend trades were excluded. The exclusion of dividend trades from
total industry volume data presents a more relevant measure of the
relative trends in our business.

   Equity and Index Options Volume Statistics

-0-
*T
         Current                       Year-to-
           Month                          Date
(000s)    Jul-06    Jul-05   % Change    Jul-06     Jul-05   % Change
--------- -------- --------- --------- ---------- ---------- ---------
ISE
 Average
 Daily
 Volume   2,295.0   1,732.3      32.5%   2,382.2    1,681.1      41.7%
ISE Total
 Volume  45,900.0  34,645.3      32.5% 345,420.3  243,754.7      41.7%
Industry
 Average
 Daily
 Volume   7,730.1   5,643.2      37.0%   8,015.1    5,577.0      43.7%
Market
 Share       29.7%     30.7% (1.0) pts      29.7%      30.1% (0.4) pts
--------- -------- --------- --------- ---------- ---------- ---------
Market
 Share:
 Customer    28.9%     30.2% (1.3) pts      30.4%      30.2%   0.2 pts
Market
 Share:
 Firm        26.7%     23.5%   3.2 pts      25.8%      21.4%   4.4 pts
Market
 Share:
 Market
 Maker       31.3%     33.1% (1.8) pts      30.3%      32.4% (2.1) pts
--------- -------- --------- --------- ---------- ---------- ---------
*T

   Equity Options Volume Statistics

-0-
*T
          Current                      Year-to-
            Month                         Date
(000s)     Jul-06   Jul-05   % Change    Jul-06     Jul-05   % Change
--------- -------- --------- --------- ---------- ---------- ---------
ISE
 Average
 Daily
 Volume    2,263.2  1,708.9      32.4%   2,350.3    1,667.5      40.9%
ISE Total
 Volume   45,263.2 34,178.3      32.4% 340,789.8  241,784.5      40.9%
Industry
 Average
 Daily
 Volume    6,979.2  5,155.2      35.4%   7,283.3    5,081.4      43.3%
Market
 Share        32.4%    33.2% (0.8) pts      32.3%      32.8% (0.5) pts
--------- -------- --------- --------- ---------- ---------- ---------
Market
 Share:
 Customer     31.4%    32.2% (0.8) pts      32.7%      32.5%   0.2 pts
Market
 Share:
 Firm         29.7%    26.4%   3.3 pts      28.8%      24.1%   4.7 pts
Market
 Share:
 Market
 Maker        34.3%    35.8% (1.5) pts      32.9%      35.4% (2.5) pts
--------- -------- --------- --------- ---------- ---------- ---------
*T

   Index Options Volume Statistics

-0-
*T
            Current                       Year-to-
              Month                         Date
(000s)       Jul-06    Jul-05   % Change   Jul-06    Jul-05  % Change
----------- --------- --------- --------- -------- --------- ---------
ISE Average
 Daily
 Volume         31.8      23.3      36.4%    31.9      13.6     135.0%
ISE Total
 Volume        636.8     467.0      36.4% 4,630.5   1,970.2     135.0%
Industry
 Average
 Daily
 Volume        750.9     488.0      53.9%   731.8     495.6      47.7%
Market
 Share           4.2%      4.8% (0.6) pts     4.4%      2.7%   1.7 pts
----------- --------- --------- --------- -------- --------- ---------
*T

   Monthly Highlights

   --  ISE was the largest U.S. equity options exchange in July.

   --  On July 5, 2006, ISE announced the introduction of a Second
        Market that will list approximately 850 additional equity
        options beginning in the third quarter of 2006, pending SEC
        approval. The listing of these equity options classes will
        double the total number of options classes traded at ISE.

   --  On July 10, 2006, ISE received SEC approval to launch its new
        Quarterly options product. Quarterly options expire at the end
        of a calendar quarter. For each options class, ISE offers five
        expiration dates: four front calendar quarters and the fourth
        quarter from the following year. The ISE now offers Quarterly
        Options expiring on the last trading days in September 2006,
        December 2006, March 2007, June 2007, and December 2007.

   --  On July 19, 2006, ISE announced that it rolled out PrecISE
        Trade(TM), its new front-end trading application for
        broker-dealers to access ISE's markets. PrecISE offers users a
        lighter application with reduced bandwidth requirements and a
        faster, flexible trading interface that provides greater
        capacity to support future enhancements.

   --  On July 24, 2006, ISE announced that Nomura Securities
        International, Inc., Van der Moolen, and a subsidiary of
        E*TRADE FINANCIAL Corporation joined previously announced
        strategic partners Bear Stearns, Citadel Derivatives Group,
        Deutsche Bank, Interactive Brokers Group LLC, JPMorgan, Knight
        Capital Group, Inc., and Sun Trading LLC as joint owners of
        the new ISE Stock Exchange LLC.

   --  ISE traded more volume than any other options exchange in 660
        of 924 issues in its listings.

   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.

   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.