ISE Reports Monthly Volume for June 2006; Average Daily Volume of 2.2 Million Contracts, up 45% from June 2005

The International Securities Exchange (NYSE:ISE) today
reported that average daily trading volume for equity and index
options contracts for June 2006 increased 44.6% to 2.2 million
contracts as compared to 1.5 million contracts during the same period
in 2005. Total equity and index options volume for the month increased
44.6% to 48.6 million contracts from 33.6 million contracts in the
same year-ago period.
   On a year-to-date basis, average daily trading volume of equity
and index options increased 43.2% to 2.4 million contracts traded as
compared to 1.7 million contracts traded in the prior year. Total
equity and index volume through June 2006 increased 43.2% to 299.5
million contracts from 209.1 million contracts in the same period last
year.
   We continued to witness trading activity related to dividend
trades among options market makers on certain other exchanges. These
trades have minimal profitability impact, if any, and only serve to
temporarily inflate and distort trading volume and market share when
transacted. Dividend trades are typically effected in order to profit
from the oversight or misunderstanding of certain retail investors who
neglect to exercise their call options prior to a stock going
ex-dividend. ISE does not provide a marketplace for dividend trades.
   If the volume from the largest dividend trades were excluded from
the data, our market share of equity options for the month of June
would increase to 31.9% from 31.6%, an increase of 0.3 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.

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Equity and Index Options Volume Statistics
                                              Current Month
(000s)                                  Jun-06     Jun-05     % Change
----------------------------------------------------------------------
ISE Average Daily Volume               2,208.5    1,527.2        44.6%
ISE Total Volume                      48,587.8   33,598.2        44.6%
Industry Average Daily Volume          7,760.9    5,189.2        49.6%
Market Share                             28.5%      29.4%    (0.9) pts
----------------------------------------------------------------------
Market Share: Customer                   28.3%      29.9%    (1.6) pts
Market Share: Firm                       25.3%      20.7%      4.6 pts
Market Share: Market Maker               29.7%      31.5%    (1.8) pts
----------------------------------------------------------------------

                                               Year-to-Date
(000s)                                  Jun-06     Jun-05     % Change
----------------------------------------------------------------------
ISE Average Daily Volume               2,396.2    1,672.9        43.2%
ISE Total Volume                     299,520.3  209,109.4        43.2%
Industry Average Daily Volume          8,060.7    5,566.4        44.8%
Market Share                             29.7%      30.1%    (0.3) pts
----------------------------------------------------------------------
Market Share: Customer                   30.6%      30.3%      0.3 pts
Market Share: Firm                       25.7%      21.0%      4.7 pts
Market Share: Market Maker               30.2%      32.3%    (2.1) pts
----------------------------------------------------------------------


Equity Options Volume Statistics
                                              Current Month
(000s)                                  Jun-06     Jun-05     % Change
----------------------------------------------------------------------
ISE Average Daily Volume               2,170.1    1,504.6        44.2%
ISE Total Volume                      47,742.0   33,101.8        44.2%
Industry Average Daily Volume          6,876.0    4,698.9        46.3%
Market Share                             31.6%      32.0%    (0.5) pts
----------------------------------------------------------------------
Market Share: Customer                   31.1%      32.2%    (1.1) pts
Market Share: Firm                       28.7%      23.6%      5.1 pts
Market Share: Market Maker               32.9%      34.2%    (1.3) pts
----------------------------------------------------------------------

                                               Year-to-Date
(000s)                                  Jun-06     Jun-05     % Change
----------------------------------------------------------------------
ISE Average Daily Volume               2,364.2    1,660.8        42.3%
ISE Total Volume                     295,526.5  207,606.2        42.3%
Industry Average Daily Volume          7,331.9    5,069.5        44.6%
Market Share                             32.3%      32.8%    (0.5) pts
----------------------------------------------------------------------
Market Share: Customer                   32.9%      32.6%      0.3 pts
Market Share: Firm                       28.6%      23.7%      4.9 pts
Market Share: Market Maker               32.7%      35.3%    (2.6) pts
----------------------------------------------------------------------


Index Options Volume Statistics
                                              Current Month
(000s)                                  Jun-06     Jun-05     % Change
----------------------------------------------------------------------
ISE Average Daily Volume                  38.4       22.6        70.4%
ISE Total Volume                         845.8      496.4        70.4%
Industry Average Daily Volume            884.9      490.3        80.5%
Market Share                              4.3%       4.6%    (0.3) pts
----------------------------------------------------------------------

                                               Year-to-Date
(000s)                                  Jun-06     Jun-05     % Change
----------------------------------------------------------------------
ISE Average Daily Volume                  32.0       12.0       165.7%
ISE Total Volume                       3,993.8    1,503.2       165.7%
Industry Average Daily Volume            728.8      496.9        46.7%
Market Share                              4.4%       2.4%      2.0 pts
----------------------------------------------------------------------
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   Monthly Highlights

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

       --  On June 19, 2006, the United States Court of Appeals for
            the Second Circuit unanimously affirmed the ruling of the
            United States District Court for the Southern District of
            New York which dismissed the complaints of Dow Jones &
            Company, Inc. and Standard & Poor's, a division of the
            McGraw-Hill Companies, Inc., against ISE and The Options
            Clearing Corporation ("OCC") pertaining to ISE's decision
            to trade SPDRs(R) DIAMONDS(R) without a license. The Court
            of Appeals affirmed ISE's ability to trade options on
            exchange traded funds without a license. It ruled that
            ISE's creating, listing, trading, and clearing of options
            on the shares of exchange traded funds that track the
            performance of stock market indexes does not constitute
            misappropriation of the stock market index owners'
            intellectual property or unfair competition, and that
            ISE's use of the SPDR(R) and DIAMONDS(R) trademarks in
            listing those options does not constitute trademark
            infringement or dilution. The Court of Appeals found that
            the allegations of Dow Jones and S&P were "legally
            insufficient."

       --  ISE traded more volume in 648 of 915 issues in its
            listings than any other options exchange.

   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.