ISE to List Options on the KBW Bank Index.

NEW YORK -- The International Securities Exchange (NYSE: ISE) today announced that it will list options on the KBW Bank Index (Ticker: BKX). Timber Hill LLC will serve as the Primary Market Maker, and trading will initiate on Thursday, October 5, 2006.

The KBW Bank Index is a float-adjusted modified market capitalization index consisting of 24 leading national money center banks and regional institutions. Developed by financial services firm Keefe, Bruyette & Woods, Inc. in 1991, the KBW Bank Index has gained recognition as a leading indicator of banking industry performance. Keefe, Bruyette & Woods evaluates the index at least once a year to ensure that its composition remains representative of the banking industry.

"Index options are an important component of many investors' trading and hedging strategies," said Bruce Goldberg, ISE's Chief Marketing Officer. Goldberg continued, "The KBW Bank Index's long history as a benchmark makes this index option an excellent choice for investors who want to express a view on the banking sector. We are pleased to add the KBW Bank Index to our growing portfolio of index options products available to ISE members."

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, LLC (ISE) is a wholly-owned subsidiary of International Securities Exchange Holdings, Inc. (ISE Holdings). ISE operates 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 launched in September 2006 with strategic partners and offers an innovative MidPoint Match platform, which will be followed by a fully integrated displayed Best Bid Offer market in the fourth quarter. ISE Holdings is also a majority owner of Longitude LLC, which operates an innovative platform for events markets trading. Additionally, ISE 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, for more information about the ISE Stock Exchange, visit www.isestock.com and for more information about Longitude, 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.