ISE Launches Quarterly Options Products; One Year Pilot Starts Today.

NEW YORK -- The International Securities Exchange (NYSE: ISE) said today that it received SEC approval to launch its new Quarterly options product. Quarterly options will expire at the end of a calendar quarter. For each options class, ISE will offer five expiration dates: four front calendar quarters and the fourth quarter from the following year. The ISE will initially offer Quarterly Options expiring on the last trading days in September and December 2006, plus March, June, and December 2007.

ISE will establish a one year pilot program for the trading of such quarterly options on five Exchange Traded Funds (ETFs) including the Standard & Poor's Depositary Receipts(R) (SPY), Nasdaq-100(R) Shares (QQQQ), Diamonds(R) Trust Series 1 (DIA), iShares Russell 2000(R) Index Fund (IWM), and Select Sector SPDR(R) - Energy (XLE).

"We look forward to offering this alternative Quarterly expiration structure to our customers to allow them to better align options expirations with their equity trading practices," said David Krell, President and Chief Executive Officer of ISE. "We anticipate that this flexible product, developed to meet our clients' needs, will support new investment strategies."

Quarterly options will trade during the ISE's regular trading hours and will expire at the close of business on the last business day of the calendar quarter. The last business day of the calendar quarter will also be the last trading day for Quarterlies. Each Quarterly Options class will have unique OPRA symbols, distinct from those used for the standard monthly, LEAPs(R) or WRAP symbols.

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.

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.

Standard & Poor's Depositary Receipts(R) (SPY), Nasdaq-100(R) (QQQQ), iShares Russell 2000(R) (IWM), and Select Sector SPDR(R) - Energy (XLE) are the property of their respective owners.

DIAMONDS(R) is a registered trademark of Dow Jones & Company, Inc. ("Dow Jones") for securities issued by the Diamonds(R) Trust, Series 1 and has been licensed for use for certain purposes by Dow Jones to PDR Services Corporation ("PDR") and the American Stock Exchange LLC ("AMEX") pursuant to a license agreement with Dow Jones. DIAMONDS(R) and options which have DIAMONDS(R) as their sole underlying interest ("DIAMONDS Options") are not sponsored, endorsed, sold or promoted by Dow Jones. Dow Jones, PDR, and AMEX have not licensed or authorized ISE to (i) engage in the creation, listing, provision of a market for trading, marketing, and promotion of DIAMONDS Options or (ii) to use and refer to the DIAMONDS(R) trademark in connection with the listing, provision of a market for trading, marketing, and promotion of DIAMONDS Options or with making disclosures concerning DIAMONDS Options under any applicable federal or state laws, rules or regulations, and do not sponsor, endorse, or promote such activity by ISE. ISE is not affiliated in any manner with Dow Jones, PDR or AMEX.