ISE Elects One Board Member; Seven Board Members Re-Elected.

NEW YORK -- The International Securities Exchange (NYSE:ISE) said today that Sean Flynn of Timber Hill LLC, a subsidiary of Interactive Brokers LLC, was elected by shareholders to the company's Board of Directors. Barbara Diamond, James V. Harkness, Mark Kritzman, William A. Porter, Ivers W. Riley and Richard Schmalensee were re-elected to serve two-year terms. David Krell, ISE's president and Chief Executive Officer, was reelected to serve a one-year term. ISE's Board is comprised of 15 members, six industry directors, eight non-industry directors and ISE's Chief Executive Officer.

Mr. Flynn was elected as a representative of ISE's Primary Market Makers (PMM). His term expires in 2007. He has been an options trader with Timber Hill LLC since 1997. He is also a member of Interactive Brokers LLC, Timber Hill's parent company. He graduated from the University of California at Irvine.

Ms. Diamond was reelected as a non-industry director. Her term expires in 2007. She has been a director of ISE since 2000. Ms. Diamond has been President of BBDiamond, LLC, a management consulting firm, since 2003. From March 1978 to December 2002, Ms. Diamond served as President of the Diamond Services Group, Ltd. In addition, from March 1999 to December 2002, Ms. Diamond conducted market research for Strategic Market Systems. From 1985 to 1990, Ms. Diamond served as the North American Representative for the Sydney Futures Exchange. Ms. Diamond also has been a member of the Sydney Futures Exchange and the Singapore International Monetary Exchange. Ms. Diamond was a member of the International Monetary Market, a division of the Chicago Mercantile Exchange, from 1972 to 1998. Ms. Diamond has a B.S. in Economics from Elmhurst College.

Mr. Harkness was reelected as a representative of ISE's Competitive Market Makers (CMM). His term expires in 2007. He has been a director of ISE since 2002. Mr. Harkness has been a Managing Director of Wolverine Trading, LLC and a limited partner of Wolverine Holdings, L.P. since 1999. From April 1994 to July 1999, Mr. Harkness was Managing Director of MicroHedge. Mr. Harkness also held trading and sales positions with Telekurs AG, Market View Software and LaSalle Arbitrage.

Mr. Kritzman was reelected as a non-industry director. His term expires in 2007. He has been a director of ISE since 2000. Mr. Kritzman is the Chief Executive Officer and owner of Windham Capital Management LLC. He has held this position since January 2000. In addition, from 1993 to 2000, Mr. Kritzman served as Managing Partner of Windham Capital Management Boston, a general partnership. Mr. Kritzman is also a Senior Partner of State Street Associates, and the Research Director of CFA Institute's Research Foundation. He also teaches the Financial Engineering pro-seminar at the Massachusetts Institute of Technology's Sloan School. From 1986 to 1988, Mr. Kritzman was General Partner of New Amsterdam Partners and from 1983 to 1986 was Vice President of Bankers Trust Company. Prior to that, Mr. Kritzman held research positions with AT&T and the Equitable Life Assurance Society. Mr. Kritzman also has served as a director on several boards, including The Center for International Securities and Derivatives Markets, The Fischer Black Memorial Foundation, The Institute for Quantitative Research in Finance and The International Association of Financial Engineers. In addition, Mr. Kritzman serves on several editorial and review boards, including Emerging Markets Review, the Financial Analysis Journal, the Journal of Alternative Investments and the Journal Derivatives and the Journal of Investment Management.

Mr. Porter was reelected as a representative of ISE's Electronic Access Members (EAM). His term expires in 2007. He has been a director of ISE since 2000. Mr. Porter is a co-founder, and was the first Chairperson, of ISE from 1997 to 2002. Mr. Porter is also Chairperson Emeritus of E*TRADE, the Managing Member of KAP Group LLC and Chairperson of the Board of Adirondack Trading Partners LLC, or ATP. He has been the Chairperson of ATP since 1997. Mr. Porter has held numerous senior management positions, including Chairperson of Trelleborg Rubber Company; President of Tretorn Shoes; President of Commercial Electronics Incorporated. Mr. Porter has a M.S. in Management from The Massachusetts Institute of Technology, where he was a Sloan Fellow, a M.S. in Physics from Kansas State College and a B.A. in Mathematics from Adams State College.

Mr. Riley was reelected as a non-industry director. His term expires in 2007. He has served as Chairperson of ISE since May 26, 2002. He has been a director of ISE since 2000. From 1997 until the end of 2001, he served as a member of the Executive Committee of the International Options Market Association, where he was formerly President from 1997 through 1998. From 1994 to 1997, and from 1999 to 2000, Mr. Riley was the Chief Executive Officer of the Hong Kong Futures Exchange and Chairperson and Chief Executive Officer of the HKFE Clearing Corporation. From 1986 to 1993, he was Senior Executive Vice President of the AMEX in charge of all derivatives activity. From 1983 to 1986 he was Executive Vice President of the NYSE in charge of the options division. Previously, Mr. Riley was a founding partner of The Options Group. In addition, he was a Senior Vice President of both PaineWebber and the CBOE.

Dr. Schmalensee was reelected as a non-industry director. His term expires in 2007. He has been a director of ISE since 2000. Since November 1998, Dr. Schmalensee has been the Dean of the Massachusetts Institute of Technology, Sloan School of Management and a Professor of Economics and Management. Previously, Dr. Schmalensee served as Deputy Dean and Interim Dean. Dr. Schmalensee has been a part-time consultant for LECG, LLC since April 2004 and was a part time consultant for NERA Economic Consulting from 1991 through March 2004. In addition, Dr. Schmalensee serves on the Board of Directors of IDG, Inc., and previously served on the Board of Directors of MFS Investment Management, from June 2002 to April 2004. From 1989 to 1991, Dr. Schmalensee was a member of the President's Council of Economic Advisers. Dr. Schmalensee is a research associate of the National Bureau of Economic Research, a fellow of the Econometric Society, a member of the International Academy of Management, and a fellow of the American Academy of Arts and Sciences. Before joining MIT in 1977, Dr. Schmalensee was an Associate Professor at the University of California, San Diego, and has served as a visiting professor at the Harvard Business School.

Mr. Krell, who has served as ISE's President and Chief Executive Officer since 1997, was reelected to serve as CEO Director for another one-year term. Mr. Krell co-founded ISE in October 1997. From 1997 to 1998, he was Chairperson and co-founder of K-Squared Research, LLC, a financial services consulting firm. From 1984 to 1997, Mr. Krell was Vice President, Options and Index Products, of the NYSE. From 1981 to 1984, Mr. Krell was First Vice President at the Chicago Board Options Exchange. Mr. Krell was also a Vice President at Merrill Lynch from 1978 to 1981 and founded its Managed Options Service. He was a director on the Board of the International Federation of Technical Analysts, a President of the Market Technicians Association and a director on the Board of Directors of The Options Clearing Corporation, or OCC. Mr. Krell formerly was an Adjunct Professor at Rutgers University Graduate School of Management and at the Graduate School of Baruch College. He has taught coordinated and directed seminars and workshops at the New York Institute of Finance.

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.