ISE Launches New FTSE 250 Index Options; Innovative `Mini' Structure Simplifies Trading.

NEW YORK -- The International Securities Exchange (NYSE: ISE) announced today that on May 23, 2006, it launched index options trading on the FTSE 250 (Ticker: FTZ) through an innovative "Mini" contract structure whereby the Mini FTSE 250 Index represents 1/10th of the full value of the full-size FTSE 250 Index. The FTSE 250 Index is a capitalization-weighted index of the most highly capitalized companies listed on the London Stock Exchange outside the FTSE 100. Constituents are selected quarterly as the 101st to 350th largest companies listed on the exchange. This product was developed with FTSE Group, the award-winning index provider. Timber Hill LLC serves as the Primary Market Maker.

This is the first time that FTSE 250 options have traded electronically in the U.S., and follows on ISE's introduction on May 5, 2006 of the "Mini" contracts on the FTSE 100 index. These will be cash-settled index options.

"ISE is delighted to introduce the new electronically traded "Mini" index options on the FTSE 250," said Bruce D. Goldberg, ISE's Chief Marketing Officer. "With the increased demand for global diversification and risk management trading strategies by both retail and institutional investors alike, we believe this product provides an innovative investment and trading strategy that is both affordable and easy to use."

Mark Makepeace, Chief Executive of FTSE Group, commented, "In addition to the recently launched FTSE 100 Mini-contracts, U.S. investors now have another domestic opportunity to invest in the FTSE 250, the definitive mid-cap measure of the UK market."

Additional information about this product, 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 (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.