Philadelphia Stock Exchange Seat Owners Vote To Demutualize

The Philadelphia Stock Exchange, Inc. (PHLX), which has been pursuing a plan of demutualization - under which it will convert from a membership-owned institution to a shareholder-owned corporation - announced today that equitable titleholders, or seat owners, voted yesterday to approve the plan 330 to 59, a margin of 85% to 15%, with 80% of the seats voted.

"This vote by the seat owners is an historic first step," said Meyer S. "Sandy" Frucher, Chairman and CEO of the Exchange. "We are pleased that seat owners approved the plan and want to position PHLX for growth, and we look forward to the Members vote next Tuesday."

PHLX membership will vote on the plan on November 25.

If members vote in favor of the plan, the final step in the process will involve securing approval by the Securities and Exchange Commission (SEC) following a public notice and comment period. The Exchange expects that SEC approval could be forthcoming during the first quarter of 2004.

The Philadelphia Stock Exchange, the nation's first stock exchange, was founded in 1790. The PHLX trades more than 2,000 stocks, nearly 1,000 listed equity options, 14 sectors index options and currency pairs. For more information about the PHLX and its products, visit www.phlx.com.