CBOE Board Unanimously Approves Filing To Demutualize - CBOE Reports Earnings For First Six Months Of 2006

The Chicago Board Options Exchange announced today that its Board of Directors unanimously authorized the filing of an S-4 Registration Statement with the Securities and Exchange Commission (SEC). The filing of the S-4 is a key step in CBOE's demutualization process, which will result in the conversion of CBOE from a membership organization to a wholly owned subsidiary of a new holding company, CBOE Holdings, Inc. CBOE expects to submit the filing to the SEC in the coming weeks. CBOE's proposed restructuring must be approved by the SEC and by a vote of the CBOE membership.

CBOE is currently a mutually-owned membership organization. In its demutualization, memberships will be converted into shares of the new company. The conversion of memberships to shares also provides CBOE Holdings, Inc. with the ability to pursue an IPO, should it decide to become a publicly traded company.

In anticipation of its eventual demutualization, CBOE began its transition to a for-profit corporation in January 2006. The Exchange streamlined its 2006 operating budget and reconstituted the composition and functions of its governance and advisory committees to reflect those of a for-profit enterprise. For the first six months of 2006, CBOE reported revenues of $129.6 million, versus $98.2 million for the same time period last year; income before taxes of $32.0 million, versus $8.7 million last year; and retained earnings of $139.2 million, versus $114.3 million a year ago.

"The willingness to change has enabled CBOE to continue to lead an industry vastly different than the one it launched 33 years ago. Our for-profit transition has enabled CBOE to operate more efficiently, and this next step will further increase CBOE's autonomy and agility. Demutualization provides the "strategic optionality" necessary to chart the course for years to come. The conversion of seats to shares allows us to deal in the same currency as our competitors and potential partners at a time when the marketplace embraces the new structure," said William J. Brodsky, CBOE Chairman and CEO.

CBOE, the world's largest options marketplace and the 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/