ISE Intl Secs Exchange Hldgs

The International Securities Exchange (NYSE: ISE) today announced that trading in its Second Market for options will begin on October 16, 2006. ISE developed its Second Market to provide its members with a distinct platform that will leverage ISE�s leading community of market makers and proven, competitive market structure to create additional liquidity in options that have typically experienced lower trading volumes. ISE will initially list twenty options classes in its Second Market and will continue to add listings regularly until approximately 850 names are traded. Once fully rolled out, the Second Market will double the total number of equity options classes listed at ISE, offering members access to equity options that represent approximately 99% of industry volume through the ISE platform. David Krell, President and Chief Executive Officer of ISE said, �The launch of ISE�s Second Market significantly expands the number of equity options classes available to our members and enhances the trading flexibility of our options platform. In response to members� requests to trade these less liquid issues at ISE, we determined that creating the Second Market would improve competition and lead to a better trading environment in this niche of the options space.� In order to promote the creation of deep and competitive markets in these products, the Second Market offers separate quoting rules and access standards from ISE�s primary market. An open access structure will allow greater flexibility for competitive market making. ISE�s existing market makers will be eligible to make markets in the Second Market through a single monthly access fee. Additionally, current members of ISE who are not market makers will be eligible to quote in the Second Market by paying an access fee. No additional trading rights are required. Options classes traded in the Second Market will comply with existing listing requirements and trade under existing ISE trading rules. Trading in ISE�s Second Market will commence with the twenty symbols listed below. Beginning the week following the launch, approximately 80 to 100 additional listings will be added each week. Symbol Company PMM ABAX Abaxis Inc Citadel Derivatives Group LLC ACLI America Commercial Lines Inc Citadel Derivatives Group LLC ASPV Aspreca Pharmaceuticals Corp UBS Securities LLC AW Allied Waste Inds, Inc Merrill Lynch Professional Clearing Corporation BEN Franklin Resources Inc Morgan Stanley & Co. Incorporated DBRN The Dress Barn Inc Merrill Lynch Professional Clearing Corporation DPTR Delta Petroleum SLK-Hull Derivatives LLC DRQ Dril-Quip Inc Timber Hill LLC DVA Davita Inc SLK-Hull Derivatives LLC FTI FMC Technologies Inc Citadel Derivatives Group LLC GGB Gerdau S.A. Merrill Lynch Professional Clearing Corporation JEC Jacobs Engineering Group Inc SLK-Hull Derivatives LLC MNI Knight Ridder Inc Morgan Stanley & Co. Incorporated NOC Northrop Grumman Corp Citadel Derivatives Group LLC OSK OshKosh Truck Corp Timber Hill LLC PLCE The Children�s Place Retail UBS Securities LLC SFD Smithfield Foods Morgan Stanley & Co. Incorporated SGY Stone Energy Corporation SLK-Hull Derivatives LLC SPN Superior Energy Services Inc UBS Securities LLC SRZ Sunrise Assisted Living Inc Timber Hill LLC 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. The International Securities Exchange (NYSE: ISE) today announced that trading in its Second Market for options will begin on October 16, 2006. ISE developed its Second Market to provide its members with a distinct platform that will leverage ISE's leading community of market makers and proven, competitive market structure to create additional liquidity in options that have typically experienced lower trading volumes. ISE will initially list twenty options classes in its Second Market and will continue to add listings regularly until approximately 850 names are traded. Once fully rolled out, the Second Market will double the total number of equity options classes listed at ISE, offering members access to equity options that represent approximately 99% of industry volume through the ISE platform. David Krell, President and Chief Executive Officer of ISE said, "The launch of ISE's Second Market significantly expands the number of equity options classes available to our members and enhances the trading flexibility of our options platform. In response to members' requests to trade these less liquid issues at ISE, we determined that creating the Second Market would improve competition and lead to a better trading environment in this niche of the options space." In order to promote the creation of deep and competitive markets in these products, the Second Market offers separate quoting rules and access standards from ISE's primary market. An open access structure will allow greater flexibility for competitive market making. ISE's existing market makers will be eligible to make markets in the Second Market through a single monthly access fee. Additionally, current members of ISE who are not market makers will be eligible to quote in the Second Market by paying an access fee. No additional trading rights are required. Options classes traded in the Second Market will comply with existing listing requirements and trade under existing ISE trading rules. Trading in ISE's Second Market will commence with the twenty symbols listed below. Beginning the week following the launch, approximately 80 to 100 additional listings will be added each week. -0- *T Symbol Company PMM ---------------------------------------------------------------------- ABAX Abaxis Inc Citadel Derivatives Group LLC ---------------------------------------------------------------------- ACLI America Commercial Lines Inc Citadel Derivatives Group LLC ---------------------------------------------------------------------- ASPV Aspreca Pharmaceuticals Corp UBS Securities LLC ---------------------------------------------------------------------- AW Allied Waste Inds, Inc Merrill Lynch Professional Clearing Corporation ---------------------------------------------------------------------- BEN Franklin Resources Inc Morgan Stanley & Co. Incorporated ---------------------------------------------------------------------- DBRN The Dress Barn Inc Merrill Lynch Professional Clearing Corporation ---------------------------------------------------------------------- DPTR Delta Petroleum SLK-Hull Derivatives LLC ---------------------------------------------------------------------- DRQ Dril-Quip Inc Timber Hill LLC ---------------------------------------------------------------------- DVA Davita Inc SLK-Hull Derivatives LLC ---------------------------------------------------------------------- FTI FMC Technologies Inc Citadel Derivatives Group LLC ---------------------------------------------------------------------- GGB Gerdau S.A. Merrill Lynch Professional Clearing Corporation ---------------------------------------------------------------------- JEC Jacobs Engineering Group Inc SLK-Hull Derivatives LLC ---------------------------------------------------------------------- MNI Knight Ridder Inc Morgan Stanley & Co. Incorporated ---------------------------------------------------------------------- NOC Northrop Grumman Corp Citadel Derivatives Group LLC ---------------------------------------------------------------------- OSK OshKosh Truck Corp Timber Hill LLC ---------------------------------------------------------------------- PLCE The Children's Place Retail UBS Securities LLC ---------------------------------------------------------------------- SFD Smithfield Foods Morgan Stanley & Co. Incorporated ---------------------------------------------------------------------- SGY Stone Energy Corporation SLK-Hull Derivatives LLC ---------------------------------------------------------------------- SPN Superior Energy Services Inc UBS Securities LLC ---------------------------------------------------------------------- SRZ Sunrise Assisted Living Inc Timber Hill LLC ---------------------------------------------------------------------- *T 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.