ISE Stock Exchange Launches Fully-Displayed Market

  
    
  
  
    
      The International Securities Exchange (NYSE: ISE) announced today that 
      the ISE Stock Exchange successfully launched its fully-displayed stock 
      market on Friday, December 8, 2006. With the launch of the 
      fully-displayed market, the ISE Stock Exchange now offers the only 
      fully-electronic dual structure that provides integrated access to both 
      displayed and non-displayed liquidity pools. The ISE Stock Exchange is a 
      completely automated market place that offers high-speed order execution 
      capabilities, a competitive pricing structure, and neutral access rules.
    
    
      David Krell, ISE’s President and Chief 
      Executive Officer, said, “We are very pleased 
      to introduce the fully-displayed market, which significantly enhances 
      the flexibility and functionality of the ISE Stock Exchange. Traders 
      will be able to access the Reg NMS-protected equities markets and ISE’s 
      non-displayed liquidity pool continuously and simultaneously through our 
      Exchange.”
    
    
      The ISE Stock Exchange’s introductory product, 
      MidPoint Match™, a continuous, anonymous 
      platform for trading equities at the midpoint price of the National Best 
      Bid and Offer (NBBO), debuted in September 2006. Displayed market orders 
      first receive exposure to the non-displayed MidPoint Match order book 
      and may be automatically executed with price improvement.
    
    
      Andrew Brenner, head of the ISE Stock Exchange, noted, “Displayed 
      market orders will automatically receive triple order exposure to 
      maximize execution quality and prevent trade-throughs. First, orders 
      will have the opportunity to receive price improvement from exposure to 
      MidPoint Match. Second, orders will either be executed or displayed on 
      ISE’s order book. Third, we will have the 
      capability to route orders to other market centers if necessary to 
      achieve the best price.”
    
    
      Trading in the fully-displayed market began with ten listings, and 
      additional listings will be added over the next several weeks. The 
      initial list of names includes Apple Computer, Inc.
    
    
      (Ticker: AAPL); Broadcom Corporation (Ticker: BRCM); Comcast Corporation 
      (Class A) (Ticker: CMCSA); Comcast Corporation (Class A Special) 
      (Ticker: CMCSK); General Electric Company (Ticker: GE); iShares Russell 
      2000 Index (ETF) (Ticker: IWM); NASDAQ 100 Trust Shares (ETF) (Ticker: 
      QQQQ); Pfizer Inc. (Ticker: PFE); Phelps Dodge Corporation (Ticker: PD); 
      and SPDR Trust Series (ETF) (Ticker: SPY).
    
    
      Currently, over 3,000 securities trade in MidPoint Match. The ISE Stock 
      Exchange intends to trade the full complement of approximately 7,000 
      National Market System equities and ETFs by February 5, 2007 in both the 
      fully-displayed market and MidPoint Match. The ISE Stock Exchange 
      operates normal trading hours from 9:30 am until 4:00 pm. Trading is 
      extended to 4:15 pm for certain ETFs. Fee information is available at www.isestock.com.
    
    
      ISE entered the equities market on September 8, 2006 with the launch of 
      the ISE Stock Exchange, LLC. The ISE Stock Exchange was formed in 
      partnership with key strategic firms that are leading broker-dealers and 
      members of the exchange, including Bear Stearns, Citadel Derivatives 
      Group, Deutsche Bank, a subsidiary of E*TRADE FINANCIAL Corporation, Interactive 
      Brokers Group LLC, JPMorgan, Knight Capital Group, Inc., Nomura 
      Securities International, Inc., Sun Trading LLC, and Van der Moolen.
    
    
      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.