ISE To Launch New Water Index

The International Securities Exchange (NYSE:ISE)
announced today that it is launching the ISE-B&S Water Index (Ticker:
HHO), a new sector index option and benchmark for this emerging
industry which was developed with Boenning & Scattergood (B&S), one of
the oldest, independently operated securities firms headquartered in
the Mid-Atlantic region.
   The ISE-B&S Water Index was developed in response to growing
interest in water as a scarce resource and comprises companies in the
water infrastructure, filtration, distribution, purification and
treatment industries. The index currently contains 20 stocks that
trade in the U.S. market, including such notable domestic industry
participants as Aqua America Inc. (NYSE: WTR), Watts Water
Technologies Inc. (NYSE: WTS), as well as international companies that
trade as Depositary Receipts, such as Companhia de Saneamento Basico
do Estado de Sao Paulo (NYSE: SBS). The index is the basis for
cash-settled index options, which will list and begin trading today on
ISE under the symbol HHO.
   "ISE is pleased to announce the new ISE-B&S Water Index which
capitalizes on the growing interest in water as a precious commodity.
We have been at the forefront of developing and launching innovative
indices to anticipate market demand. This continues our record of
innovation in the options market and adds to ISE's portfolio of unique
and proprietary sector index options, which offer investors
sophisticated trading strategies to manage their equity portfolios,"
said Bruce D. Goldberg, ISE's Chief Marketing Officer.
   Harold Scattergood, Chairman of Boenning & Scattergood, said, "We
are very pleased to join with the International Securities Exchange in
the launch of this exciting new product. Boenning & Scattergood has a
focused research effort and professional staff dedicated to
identifying promising investment opportunities in the Water industry
and businesses that are improving the supply and quality of water.
This new product is certain to provide investors with the ability to
participate in this exciting new industry, as well as serve as an
excellent tool to control risk."
   ISE's index methodologies for the sector indexes are rules-based,
making the rules for calculating and maintaining the indexes freely
available to everyone, and thus easily used to test the historic
performance of the indexes.
   Additional information about these 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

   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.

   Forward Looking Statements

   This press release contains "forward looking statements." 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
registration statement on Form S-1, current reports on Form 8-K and
quarterly reports on Form 10-Q, as amended.