ISE Stock Exchange Launches Fully-Displayed Market.

NEW YORK -- The International Securities Exchange (NYSE: ISE) announced today that the ISE Stock Exchange successfully launched its fully-displayed stock market on Friday, December 8, 2006. With the launch of the fully-displayed market, the ISE Stock Exchange now offers the only fully-electronic dual structure that provides integrated access to both displayed and non-displayed liquidity pools. The ISE Stock Exchange is a completely automated market place that offers high-speed order execution capabilities, a competitive pricing structure, and neutral access rules.

David Krell, ISE's President and Chief Executive Officer, said, "We are very pleased to introduce the fully-displayed market, which significantly enhances the flexibility and functionality of the ISE Stock Exchange. Traders will be able to access the Reg NMS-protected equities markets and ISE's non-displayed liquidity pool continuously and simultaneously through our Exchange."

The ISE Stock Exchange's introductory product, MidPoint Match[TM], a continuous, anonymous platform for trading equities at the midpoint price of the National Best Bid and Offer (NBBO), debuted in September 2006. Displayed market orders first receive exposure to the non-displayed MidPoint Match order book and may be automatically executed with price improvement.

Andrew Brenner, head of the ISE Stock Exchange, noted, "Displayed market orders will automatically receive triple order exposure to maximize execution quality and prevent trade-throughs. First, orders will have the opportunity to receive price improvement from exposure to MidPoint Match. Second, orders will either be executed or displayed on ISE's order book. Third, we will have the capability to route orders to other market centers if necessary to achieve the best price."

Trading in the fully-displayed market began with ten listings, and additional listings will be added over the next several weeks. The initial list of names includes Apple Computer, Inc.

(Ticker: AAPL); Broadcom Corporation (Ticker: BRCM); Comcast Corporation (Class A) (Ticker: CMCSA); Comcast Corporation (Class A Special) (Ticker: CMCSK); General Electric Company (Ticker: GE); iShares Russell 2000 Index (ETF) (Ticker: IWM); NASDAQ 100 Trust Shares (ETF) (Ticker: QQQQ); Pfizer Inc. (Ticker: PFE); Phelps Dodge Corporation (Ticker: PD); and SPDR Trust Series (ETF) (Ticker: SPY).

Currently, over 3,000 securities trade in MidPoint Match. The ISE Stock Exchange intends to trade the full complement of approximately 7,000 National Market System equities and ETFs by February 5, 2007 in both the fully-displayed market and MidPoint Match. The ISE Stock Exchange operates normal trading hours from 9:30 am until 4:00 pm. Trading is extended to 4:15 pm for certain ETFs. Fee information is available at www.isestock.com.

ISE entered the equities market on September 8, 2006 with the launch of the ISE Stock Exchange, LLC. The ISE Stock Exchange was formed in partnership with key strategic firms that are leading broker-dealers and members of the exchange, including Bear Stearns, Citadel Derivatives Group, Deutsche Bank, a subsidiary of E*TRADE FINANCIAL Corporation, Interactive Brokers Group LLC, JPMorgan, Knight Capital Group, Inc., Nomura Securities International, Inc., Sun Trading LLC, and Van der Moolen.

ISE Background

International Securities Exchange Holdings, Inc. (NYSE: ISE), through its subsidiaries, operates a family of innovative securities markets. ISE is founded on the principle that technology and competition create better, more efficient markets for investors and consists of an options exchange, a stock exchange and an alternative markets platform. ISE continually enhances its trading systems and develops new products to provide investors with the best marketplace and investment tools to trade smarter.

ISE developed a unique market structure for advanced screen-based trading systems and in May 2000 launched the first fully-electronic US options exchange. Currently, ISE operates the largest U.S. equity options exchange and is among the leading options exchanges in the world. ISE offers index options, including a portfolio of proprietary index products, and enhanced market data products for sophisticated investors. ISE FX Options[TM] are slated to launch in 2007.

ISE Stock Exchange, launched in September 2006 with strategic partners, includes an innovative MidPoint Match[TM] platform which offers investors continuous price improvement. MidPoint Match was integrated with a fully-displayed Best Bid Offer market in December 2006.

ISE's alternative markets business currently consists of an events market trading platform known as Longitude. Longitude's patented and proprietary technology provides a unique parimutuel structure for derivatives auctions which results in greater trading and pricing flexibility for market participants.

For more information about ISE and its options exchange, visit www.iseoptions.com and for more information about ISE Stock Exchange, visit www.isestock.com. Additionally, to learn more about ISE alternative markets technology, visit www.longitude.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.