ISE Announces Changes to Board Leadership.

NEW YORK -- The International Securities Exchange (NYSE: ISE) announced today the following changes to its Board leadership. After four distinguished years of service, Ivers W. Riley will be stepping down as Chairman of the ISE, but will remain on the Board of Directors. Dr. Frank J. Jones, Ph.D., who has been a director of the ISE since 2000 and is currently Vice Chairman of the Board, will become Chairman. Dr. John F. Marshall, Ph.D., who has been a director of the ISE since 2000 and is currently Chairman of the Finance and Audit Committee, will now become Vice Chairman. The ISE Board consists of 15 members, which includes seven industry directors and eight non-industry directors.

Dr. Frank Jones has been a Professor in the accounting and business department at San Jose State University since 2003. Additionally, Dr. Jones was Executive Vice President and Chief Investment Officer of Guardian Life Insurance Company of America from 1991 to 2002. Previously, Dr. Jones was Managing Director at Merrill Lynch & Co., Global Fixed Income Research and Economics. He has served on several boards, including The Intermarket Clearing Corporation (a subsidiary of OCC), OCC and New York Futures Clearing Corporation. Dr. Jones holds a Ph.D. in Economics from Stanford University, a M.B.A. from the University of Pittsburgh, a M.S. in Nuclear Engineering from Cornell University and a B.A. and B.S. from University of Notre Dame.

Dr. John Marshall has been a Senior Member of Marshall, Tucker & Associates, LLC since 1991. He is also the Chief Executive Officer of Port Jefferson Capital I, LLC, a venture capital fund. Dr. Marshall served on the faculty of the Tobin Graduate School of Business at St. John's University from 1981 to 2000. Dr. Marshall also served as the Executive Director of the International Association of Financial Engineers. Dr. Marshall earned a Ph.D. in Financial Economics from the State University of New York at Stony Brook, a M.B.A. in Finance from St. John's University in 1977, a M.A. in Quantitative Economics from the State University of New York at Stony Brook and a B.S. in biology/chemistry from Fordham University in 1973.

"We wish to thank Ivers for the significant contributions that he has made over the past four years as our Chairman. He can be proud of the organization's accomplishments during this period which have established ISE as a leader in corporate governance and positioned us for growth within the industry. His ongoing role as a board member is appreciated," said David Krell, President and Chief Executive Officer of ISE. "We are also delighted to have Frank assume the Chairmanship and to have John become the Vice Chairman of the Board. As established industry experts, both are well-positioned to build on our organization's success and to lead ISE's future development."

Mr. Riley became Chairman of ISE on May 26, 2002. Prior to serving as ISE's first Vice Chairman, Mr. Riley held several senior level positions in the financial services industry and is regarded as a worldwide leader in the derivatives sector. Until the end of 2001, he served as a member of the executive committee of the International Options Market Association (IOMA), where he was formerly President, from 1997 through 1998.

From 1994 to 1997, and from 1999 to 2000, Mr. Riley was Chief Executive of the Hong Kong Futures Exchange and Chairman of the HKFE Clearing Corporation. From 1986 to 1993, he was Senior Executive Vice President of the American Stock Exchange (AMEX) in charge of all derivatives activity. While at AMEX, Mr. Riley was the driving force in the development and introduction of SPDRs(R), one of the most successful derivative products traded on any exchange.

From 1983 to 1986 he was Executive Vice President of the New York Stock Exchange, in charge of the options division. Previously, Mr. Riley was a founding partner of The Options Group, an investment advisory and consulting firm providing computerized support for derivatives dealers and traders. In addition, he was a Senior Vice President of both PaineWebber and the Chicago Board 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.