The Nasdaq Stock Market, Inc.’s (NASDAQ: NDAQ) Market Intelligence Desk^® announced market statistics for the six-month period ended June 30, 2005.

Index	1Q	2Q	YTD Ending 6/30/05
NASDAQ Composite Index®	-8.1%	2.9%	-5.2%
NASDAQ-100 Index®	-8.5%	0.7%	-7.8%
NASDAQ Financial–100SM	-7.6%	4.4%	-3.2%
NASDAQ Industrial Index®	-7.9%	1.7%	-6.2%
NASDAQ Transportation Index®	-4.7%	-2.5%	-7.2%
NASDAQ Bank IndexSM	-7.8%	2.6%	-5.2%
NASDAQ Telecommunication Index®	-8.2%	1.8%	-6.4%
NASDAQ Insurance IndexSM	-2.1%	5.1%	3.0%
NASDAQ Computer Index®	-7.5%	3.4%	-4.1%
NASDAQ Biotechnology Index®	-15.3%	-6.1%	-21.4%

Source: NASDAQ Market Intelligence Desk

Market Data

• For the six-month period ending June 30, 2005 the NASDAQ Composite Index finished down 5.2%. The NASDAQ composite saw two very different quarters. Through the first quarter ending March 30, 2005, all nine of NASDAQ's sub-indexes posted losses. In comparison, seven of nine sub-indexes posted positive gains in the second quarter ending 6/30/05.

• Of the NASDAQ sub-indexes, the greatest weakness came from the NASDAQ Biotechnology Index. This index was down 15.3% in the first quarter and a total of 21.4% for the first six months of 2005.

Market Data

• Strength came out of the insurance sector. The NASDAQ Insurance Index had the smallest decline in the first quarter (-2.1%) coupled with the greatest increase in the second quarter (5.1%), and is the only NASDAQ sub index that is in positive territory for the first six months of 2005.

• NASDAQ average daily share volume for the six month period ending 6/30/05 decreased 1.2% to 1.87 billion. Total share volume for the comparable period declined 0.4% to 233.7 billion shares.

• Average daily dollar volume for the period ending 6/30/05 was $40.4 billion, up 13% from the period ending 6/30/04. Total dollar volume traded for the same period of 2005 was $5.1 trillion, up 14% from the first six months of 2004.

• As of 6/30/05, the total market value for The NASDAQ Stock Market was $3.5 trillion, an increase of 16.6% from 6/30/04.

• Average daily trades though 6/30/05 was 4.3 million and total trades executed were 541.9 million. This was an increase of 14.8% and 15.7%, respectively, from the period ending 6/30/04.

IPOs

• IPO's on NASDAQ for the six-month period ending June 30, 2005 decreased 30% to 45. This was 53% of IPO's across all markets. Total capital raised by NASDAQ-listed IPO's was $4.2 billion.
• Nine of NASDAQ's IPO's were international listings, which raised a total of $1.1 billion in capital.

Table A displays IPO's listed on NASDAQ by sector. Table B displays the sector breakdown of the NASDAQ Stock Market.

 

TABLE A - NASDAQ IPO Breakdown By Sector
  

Sector	Percent of Marketplace
Healthcare	38%
Technology	20%
Financials	19%
Consumer	14%
Industrials	5%
Energy/Utilities	4%

TABLE B - NASDAQ Stock Market Breakdown

Sector	Percent of Marketplace
Financials	34%
Healthcare	21%
Consumer	16%
Industrials	16%
Technology	10%
Energy/Utilities	3%

Source: NASDAQ Market Intelligence Desk

NASDAQ Product and Service Update:

NASDAQ's Closing Cross was used to conduct the annual reconstitution of the Russell Investment Group's 21 U.S. stock indexes on June 24, 2005. Approximately 428.5 million shares were executed through the Closing Cross for all 3,200 NASDAQ stocks - equating to $5.8 billion - representing increases of 28.6% and 9.4%, respectively, from 2004.

Independent Research Network:

NASDAQ launched the Independent Research Network (IRN), a joint venture with Reuters to bring investors non-biased, critical information to the market. For additional information, go to http://independentresearchnetwork.com . IRN was endorsed by both the U.S. Chamber of Commerce and by Financial Executives International.

Data Products:

NASDAQ's premier data product, TotalView^®, was enhanced in March so that it delivers information faster to traders and investors - helping them improve their trading performance. NASDAQ implemented a streamlined process of providing quotes and orders on February 7th , increasing TotalView's average speed and consistency of speed. TotalView's latency has been reduced by more than 75 percent to an average of less than 50 milliseconds. TotalView is now the fastest data feed available for receiving NASDAQ order book information.

In April, NASDAQ announced that Brut order book information is now available in TotalView. Whereas previously only Brut's best-priced orders to buy and sell each NASDAQ security were reflected, TotalView now provides investors with all displayed orders at every price level for each NASDAQ-listed security in the Brut facility, in addition to all quotes and orders in the NASDAQ Market Center^SM. TotalView's enhancement is the result of the complete integration of Brut orders in NASDAQ-listed stocks into the NASDAQ Market Center, an order display, execution and trade reporting system for all NASDAQ, NYSE and Amex-listed securities.

Financial Products:

Index Engine and Two New Indexes

NASDAQ announced in July the enhancement of its longstanding capabilities as an index provider by launching a state-of-the-art indexing platform and two new indexes that are calculated on the platform . The new indexes are the NASDAQ-100 Equal Weighted Index^SM (Symbol: NDXE) and the NASDAQ Health Care Index^SM (Symbol:IXHC).

The enhanced index platform is built upon NASDAQ's industry-leading technology platform. All existing NASDAQ^® indexes are calculated on this platform, which enables NASDAQ to calculate and disseminate an unlimited number of indexes on a real-time basis. In addition to both total return and price return indexes, NASDAQ can now calculate and disseminate indexes that include securities listed on NASDAQ, the New York Stock Exchange and the American Stock Exchange.

FTSE NASDAQ Index Series

NASDAQ Financial Products and the FTSE Group recently launched The FTSE NASDAQ Index Series. The four new indexes are based on segments of the NASDAQ Composite Index. The new indexes include:

• FTSE NASDAQ 500: NASDAQ's largest 500 companies in terms of market capitalization.
• FTSE NASDAQ Large Cap: The largest 70% of NASDAQ-listed companies in terms of market capitalization.
• FTSE NASDAQ Mid Cap: The next 20% of NASDAQ-listed companies in terms of market capitalization.
• FTSE NASDAQ Small Cap: The bottom 10% of NASDAQ-listed companies in terms of market capitalization.

FTSE will manage the indexes and calculate the intraday and closing values.

Development of the new indexes may result in the creation of investment products based on the indexes.

Indexes
A new subscription-base service called Index Watch was launched at the end of June. This service provides aggregate daily stats on NASDAQ indexes and is updated prior to market open. The data includes daily summary statistics, index holdings, index news, historical component changes and industry breakdowns. In addition, this service tracks daily changes and adjustments to NASDAQ's top indexes including: NASDAQ-100 Index, NASDAQ Composite Index, NASDAQ Financial-100 Index, NASDAQ Biotechnology Index and the America's Community Bankers NASDAQ Index. Customers can access the new service through the NASDAQTrader.com Web site.

Operations & Technology:

New NASDAQ Workstation
As part of the effort to reduce NASDAQ's dependency on legacy systems and reduce costs, the new NASDAQ Workstation went into service on June 27, 2005. It is a Web-based tool that replaces the current NASDAQ Workstation II (NWII). Customers may access NASDAQ trading systems using the new workstation via the Internet or private extranet circuits. The new interface will support real-time market data, including exchange-listed and OTCBB quotes, as well as all NASDAQ Market Center transactions and queries. Firms will be given a 60-day parallel period to transition from the old NWII platform to the new workstation. The old NWII platform will be retired in October and the NASDAQ API/SDP infrastructure will be phased out.

About NASDAQ's Market Intelligence Desk (MID)

NASDAQ's Market Intelligence Desk utilizes state-of-the-art technology to provide real-time monitoring that helps issuers track their company's stock minute-by-minute.The team is comprised of MID professionals from a variety of market backgrounds including: sell-side and buy-side trading, electronic and auction markets, equity research, portfolio management and investment banking.

About NASDAQ

NASDAQ is the largest U.S. electronic stock market. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to category-defining companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. Approximately 51% of NASDAQ-listed shares traded are reported to NASDAQ systems. For more information about NASDAQ, visit the NASDAQ Web site at www.NASDAQ.com or the NASDAQ Newsroom at www.NASDAQnews.com .