International Securities Exchange Files IPO Registration Statement

The International Securities Exchange, Inc. said today that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) for the initial public offering of its common stock. It is anticipated that shares will be sold in the offering by the company and certain selling stockholders.

Bear, Stearns & Co. Inc. and Morgan Stanley were named as joint book-running managers of the offering.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.

A copy of the preliminary prospectus relating to this offering, when available, may be obtained from Bear, Stearns & Co. Inc., c/o Prospectus Department, 383 Madison Avenue, New York, NY 10179 (tel: +1 631-274-8321) or Morgan Stanley, Prospectus Department, 1585 Broadway, New York, NY 10036-8200 (tel: +1 212-761-6775).

ISE Background
International Securities Exchange, Inc., the world's largest equity options 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 U.S. options exchange in May 2000. ISE continually enhances its trading systems to provide investors with the best marketplace to execute their options orders.