CBOE and NSX Boards Approve Plan To Reduce CBOE Interest In NSX

The Chicago Board Options Exchange (CBOE) and the National Stock Exchange (NSX) today announced that their governing Boards have approved a proposal for CBOE to sell most of its NSX Certificates of Proprietary Membership ("Certificates") to NSX, and to relinquish CBOE's accompanying rights to NSX Board positions. CBOE's Board of Directors approved the proposal at its meeting today. NSX's Board of Trustees approved the proposal at its meeting on August 10, 2004.

CBOE currently holds 68 percent of NSX's 238 outstanding Certificates and six of 13 Board seats as part of an affiliation between the two exchanges that was initiated in 1986.

"CBOE has a long and positive history with the National Stock Exchange and we are proud to have been a part of its growth from a regional stock exchange to the third largest U.S. stock market," said CBOE Chairman and CEO William J. Brodsky. "As CBOE's business strategy has shifted, the investment in NSX is no longer integral to our needs. However, we are pleased to continue to be the facilities provider to NSX."

"The stock and options market landscape was markedly different 18 years ago when the affiliation was formed," said NSX Chief Executive Officer and President David Colker. "CBOE's interest in NSX was spurred by the stock trading capability NSX offered, while CBOE provided NSX technology expertise and capital to support its historic transformation into the country's first all-electronic stock exchange. Now, as NSX continues to grow and evolve, it is in our best interest to have greater control over our own business."

The proposal requires NSX's membership approval of related bylaw amendments, and review and approval by the Securities and Exchange Commission (SEC).

NSX, the nation's first all-electronic stock exchange, is the low-cost provider of exchange services and a recognized alternative to the primary markets. Having replaced its physical trading floor with a completely automated market in 1980, NSX has been a model of exchange efficiency and a driving force for change in the world of securities exchanges. Founded in 1885, the Exchange changed its name on November 7, 2003 to the National Stock Exchange from the Cincinnati Stock Exchange. For additional information about NSX, visit the website at http://www.nsx.com.

CBOE, the world's largest options exchange and creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, visit the CBOE website at http://www.cboe.com.

CBOE(R) and Chicago Board Options Exchange(R) are registered trademarks of Chicago Board Options Exchange, Incorporated.