ISE Intl Secs Exchange Hldgs

The International Securities Exchange (NYSE:ISE) today reported that average daily trading volume for equity and index options contracts for May 2007 increased 14.1% to 3.0 million contracts as compared to 2.6 million contracts during the same period in 2006. Total equity and index options volume for the month increased 14.1% to 66.1 million contracts from 57.9 million contracts in the same year-ago period. On a year-to-date basis, average daily trading volume of equity and index options increased 15.5% to 2.8 million contracts traded as compared to 2.4 million contracts traded in the prior year. Total year-to-date equity and index volume through May 2007 increased 15.5% to 289.9 million contracts from 250.9 million contracts in the same period last year. Equity and Index Options Volume Statistics Current Month Year-to-Date (000s) May-07 May-06 % Change� May-07 May-06 % Change� ISE Average Daily Volume 3,004.1� 2,632.1� 14.1% 2,814.4� 2,436.2� 15.5% ISE Total Volume 66,091.2� 57,906.6� 14.1% 289,879.5� 250,932.5� 15.5% Industry Average Daily Volume 10,419.4� 9,077.9� 14.8% 10,053.7� 8,125.3� 23.7% Market Share 28.8% 29.0% (0.2) pts 28.0% 30.0% (2.0) pts Market Share: Customer 30.1% 28.9% 1.2 pts 29.5% 31.1% (1.6) pts Market Share: Firm 27.7% 27.2% 0.5 pts 24.8% 25.7% (0.9) pts Market Share: Market Maker 28.1% 29.6% (1.5) pts 27.8% 30.3% (2.5) pts � Equity Options Volume Statistics Current Month Year-to-Date (000s) May-07 May-06 % Change� May-07 May-06 % Change� ISE Average Daily Volume 2,955.0� 2,589.0� 14.1% 2,769.7� 2,405.7� 15.1% ISE Total Volume 65,009.5� 56,958.5� 14.1% 285,277.9� 247,784.6� 15.1% Industry Average Daily Volume 9,412.0� 8,137.7� 15.7% 9,088.8� 7,429.3� 22.3% Market Share 31.4% 31.8% (0.4) pts 30.5% 32.4% (1.9) pts Market Share: Customer 32.7% 31.4% 1.3 pts 32.1% 33.3% (1.2) pts Market Share: Firm 30.6% 30.6% 0 pts 27.3% 28.6% (1.3) pts Market Share: Market Maker 30.5% 32.6% (2.1) pts 30.1% 32.7% (2.6) pts � Index Options Volume Statistics Current Month Year-to-Date (000s) May-07 May-06 % Change� May-07 May-06 % Change� ISE Average Daily Volume 49.2� 43.1� 14.1% 44.7� 30.6� 46.2% ISE Total Volume 1,081.7� 948.1� 14.1% 4,601.5� 3,147.9� 46.2% Industry Average Daily Volume 1,007.2� 939.5� 7.2% 964.4� 695.4� 38.7% Market Share 4.9% 4.6% 0.3 pts 4.6% 4.4% 0.2 pts Dividend Trade Activity Our market share statistics continue to be negatively impacted by trading activity related to dividend trades among certain options market makers. These trades temporarily inflate and distort trading volume and market share when transacted. If the volume from the largest dividend trades were excluded from the data, our market share of equity options for the month of May would increase to 32.2% from 31.4%, an increase of 0.8 market share points. On a year-to-date basis, our market share would increase to 31.5% from 30.5%, an increase of 1.0 market share point, if the volume from the largest dividend trades were excluded. The exclusion of dividend trades from total industry volume data presents a more relevant measure of the relative trends in our business. Monthly Highlights Average daily volume of equity and index options contracts surpassed the 3 million mark for the first time in ISE�s history. ISE was the largest U.S. equity options exchange in May. On May 8, 2007, ISE announced the addition of four new board members. Joseph Stefanelli and Kenneth Vecchione joined the Board of Directors of International Securities Exchange Holdings, Inc. and International Securities Exchange, LLC (ISE LLC). Leonard Ellis and Randy Frederick joined the ISE LLC Board as representatives of ISE LLC's Competitive Market Makers (CMMs) and Electronic Access Members (EAMs), respectively. The new board members are replacing Ivers Riley, Mark Kritzman, James Harkness and William Porter, who are retiring from their respective Boards due to term limits. On May 8, 2007, ISE�s Board of Directors declared a quarterly dividend of $0.05 per outstanding share of Class A Common Stock. The dividend is payable on June 29, 2007 to holders of record as of the close of business on June 22, 2007. On May 10, 2007, ISE announced that its Board of Directors elected two new officers. Thomas Reina was appointed as Technology Development Officer and John Ryan as Technology Architecture Officer. On May 18, 2007, ISE co-sponsored the NYU conference �Derivatives 2007: New Ideas, New Instruments, New Markets� where leading academics and industry practitioners examined the links between modern derivatives theory and market practice. ISE traded more volume than any other options exchange in 941 of 1,735 issues in its listings. 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� launched in the second quarter of 2007. ISE Stock Exchange, launched in September 2006 with strategic partners, includes an innovative MidPoint Match� platform which offers investors continuous price improvement. MidPoint Match was integrated with a fully displayed Best Bid Offer market in the fourth quarter of 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.