International Securities Exchange Announces New Dividend Policy - Joining Consolidated Tape Association/Consolidated Quotation Plans And Over-The-Counter/Unlisted Trading Privileges Plan

The International Securities Exchange, Inc. (NYSE:ISE) said today that it currently intends to pay regular quarterly cash dividends on its Class A common stock for fiscal year 2006. The regular quarterly cash dividends expected to be declared in 2006 will be in an amount not less than the aggregate amount of the proceeds received by the Company from its sale of any Class B-2 memberships in fiscal year 2005, net of success bonuses that the Company may pay in connection with the completion of the sales and taxes it will pay on the proceeds. Any payments of cash dividends in the future will be at the discretion of the Company's Board of Directors and the amount of such cash dividends may vary from period to period. The Board will take into account such matters as general business conditions, the Company's financial results, capital requirements, contractual restrictions, and other factors it may deem to be relevant and in the best interest of ISE's shareholders. The Board's ability to declare a cash dividend is also subject to limits imposed by Delaware law and the SEC applicable to the declaration and payment of cash dividends. For these reasons, there can be no assurance that cash dividends will be paid in the anticipated amounts and frequency announced today.

The Company also said that it will join the Consolidated Tape Association and Consolidated Quotation Plans, or CTA/CQ Plans, and the Over-the-Counter/Unlisted Trading Privileges Plan, or OTC/UTP Plan, in connection with its continuing exploration of opportunities in other asset classes. Participation in the CTA/CQ Plans and OTC/UTP Plan is one of the necessary steps to achieve the Company's goal of creating an exchange facility to electronically trade equity securities. The CTA/CQ Plans cover quotation and last sale information for equities listed on the New York Stock Exchange and American Stock Exchange. The OTC/UTP Plan covers quotation and last sale information for Nasdaq-listed equities.

ISE Background
The International Securities Exchange was founded on the principle that technology fosters and infuses new efficiencies and operational innovations into securities trading. After developing an innovative market structure that integrated auction market principles into an advanced screen-based trading system, ISE launched the first fully electronic US options exchange in May 2000. ISE continually enhances its trading systems to provide investors with the best marketplace to execute their options orders.

For more information about ISE, its products and its technology, visit www.iseoptions.com.