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 June 2007 increased 34.9% to 3.0 million contracts as compared to 2.2 million contracts during the same period in 2006. Total equity and index options volume for the month increased 28.7% to 62.6 million contracts from 48.6 million contracts in the same year-ago period. On a year-to-date basis, average daily trading volume of equity and index options increased 18.6% 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 June 2007 increased 17.7% to 352.4 million contracts from 299.5 million contracts in the same period last year. Equity and Index Options Volume Statistics Current Month Year-to-Date (000s) � Jun-07 � Jun-06 � % Change � Jun-07 � Jun-06 � % Change ISE Average Daily Volume 2,978.8 2,208.5 34.9% 2,842.2 2,396.2 18.6% ISE Total Volume 62,555.7 48,587.8 28.7% 352,435.1 299,520.3 17.7% Industry Average Daily Volume 10,655.8 7,761.3 37.3% 10,155.7 8,061.2 26.0% Market Share � 28.0% � 28.5% � (0.5) pts � 28.0% � 29.7% � (1.7) pts Market Share: Customer 29.0% 28.3% 0.7 pts 29.4% 30.6% (1.2) pts Market Share: Firm 27.0% 25.3% 1.7 pts 25.2% 25.7% (0.5) pts Market Share: Market Maker � 27.4% � 29.7% � (2.3) pts � 27.7% � 30.2% � (2.5) pts Equity Options Volume Statistics Current Month Year-to-Date (000s) � Jun-07 � Jun-06 � % Change � Jun-07 � Jun-06 � % Change ISE Average Daily Volume 2,918.9 2,170.1 34.5% 2,795.0 2,364.2 18.2% ISE Total Volume 61,297.2 47,742.0 28.4% 346,575.2 295,526.5 17.3% Industry Average Daily Volume 9,597.7 6,876.0 39.6% 9,175.0 7,331.9 25.1% Market Share � 30.4% � 31.6% � (1.2) pts � 30.5% � 32.3% � (1.8) pts Market Share: Customer 31.5% 31.1% 0.4 pts 32.0% 32.9% (0.9) pts Market Share: Firm 29.8% 28.7% 1.1 pts 27.7% 28.6% (0.9) pts Market Share: Market Maker � 29.7% � 32.9% � (3.2) pts � 30.1% � 32.7% � (2.6) pts Index Options Volume Statistics Current Month Year-to-Date (000s) � Jun-07 � Jun-06 � % Change � Jun-07 � Jun-06 � % Change ISE Average Daily Volume 59.9 38.4 55.9% 47.3 32.0 47.9% ISE Total Volume 1,258.4 845.8 48.8% 5,860.0 3,993.8 46.7% Industry Average Daily Volume 1,057.9 884.9 19.6% 980.3 728.8 34.5% Market Share � 5.7% � 4.3% � 1.4 pts � 4.8% � 4.4% � 0.4 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 June would increase to 31.4% from 30.4%, an increase of 1.0 market share point. 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 ISE was the largest U.S. equity options exchange in June. On June 25, 2007, ISE launched the ISE Electronic Trading Index�, which established a unique benchmark of the marketplaces deemed to be most closely associated with electronic trading in the United States. Additionally, ISE listed cash-settled options based on this new index under the symbol DMA. Timber Hill LLC serves as the Primary Market Maker. On June 26, 2007, ISE introduced enhancements to PrecISE Trade�, its front-end trading application for broker-dealers to access ISE's options market. PrecISE now offers Away Market Routing that enables traders to access the entire options market through one workstation. ISE traded more volume than any other options exchange in 954 of 1,761 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 OptionsSM launched in the second quarter of 2007. ISE Stock Exchange, launched in September 2006, is a completely electronic marketplace and the only dual structure platform that integrates a dark pool, MidPoint MatchSM, with a fully displayed stock market. Midpoint Match is a proprietary, non-displayed market that trades equity securities at the midpoint between the National Best Bid and Offer (NBBO). 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, visit www.ise.com.