Globalization And Convergence Fuels Need For Reinvention Of U.S. Exchange Models - Jerry Putnam, CEO Of The Archipelago Exchange (ArcaEx) Testifies Before Senate - Committee About Recent Consolidations In The Marketplace And Regulation NMS

In testimony before the U.S. Senate Committee on Banking, Housing and Urban Affairs, Jerry Putnam, Chairman and CEO of Archipelago Holdings, Inc. (PCX: AX), owner and operator of the Archipelago Exchange(SM) (ArcaEx(R)), the nation's first totally open, all- electronic stock exchange, testified about the importance of maintaining America's preeminent role in global financial markets.

In his written testimony, Putnam stated, "I believe the merger between the NYSE and Archipelago is a bold one, but 21st century competition requires boldness. The merger represents the best of all worlds: respecting and taking the best from the past while embracing the future. It marries the 24 entrepreneurs of the Buttonwood Era with the Archipelago entrepreneurs of the Information Society."

Putnam said that "the merger between the NYSE and Archipelago makes a whole lot of sense. Above all else, it makes sense because of our shared vision to maintain America's leading position in the global capital markets by creating a world-class exchange that provides U.S. and international consumers with first-rate execution, data and issuer services. In a world where both exchanges and financial products are fast converging, we believe the NYSE Group will be positioned to better serve all traders, investors and issuers by producing efficiencies, driving innovations, and creating new business and revenue opportunities, while maintaining the highest standards of integrity, transparency and disclosure."

Noting the global trend, Putnam stated, "America cannot be left behind in a world of tectonic shifts in financial markets. History so clearly, if cruelly, teaches us that societies, nations, governments and businesses that are unwilling to embrace and shape change are relegated, over time, to the failed forgotten."

"Today, to stay competitive and serve customer's demands, exchanges need to trade stocks, options and futures on a single platform and to do so with a global footprint. I believe the recently announced mergers of the NYSE- Archipelago and Nasdaq-Instinet fit squarely within the context of this competitive dynamic. It is my strong belief that both mergers are necessary for the United States to remain competitive in capital markets globally."

A copy of Jerry Putnam's complete written testimony is available at http://www.archipelago.com .