The Montréal Exchange Announces Its Results For 2005

HIGHLIGHTS (2005 VS. 2004)

REVENUES OF $63.2 MILLION COMPARED TO $57.3 MILLION
NET EARNINGS OF $15.1 MILLION, AN INCREASE OF $6.1 MILLION
DILUTED EARNINGS PER SHARE OF $1.74 AS AGAINST $1.07

Montréal Exchange Inc. announces its results for the fiscal year ended December 31, 2005. They include:

Net earnings of $15.1 million ($1.74 diluted earnings per share), a 69% increase over the $9.0 million ($1.07 diluted earnings per share) achieved in 2004. The increase stems mainly from record transaction levels in the Canadian derivative products market (up 33%) and from the Exchange’s share in the earnings of the Boston Options Exchange (BOX), a U.S. options exchange in which the Montréal Exchange holds a 31.4% interest.
Total revenues of $63.2 million compared to $52.3 million in 2004 (excluding $5 million in non-recurring revenue from a transaction performed in first quarter 2004). The increase results from higher transactions revenue ($26.4 million, up 34%) and from increased revenue from information systems services ($15.6 million, up 28%), which are related to the management of BOX’s technical operations.

“In 2005, the Montréal Exchange reached new heights, both in terms of its development and its financial results,” said Luc Bertrand, the President and Chief Executive Officer of the Montréal Exchange. “We continued to promote the Canadian derivatives market to investors and to attract new market participants, and we also achieved record trading volume, all of which translated into stronger revenues from transactions, clearing services and market data services.

In addition, the Boston Options Exchange contributed significantly to the Exchange’s revenues and earnings in 2005; we continue to support BOX’s growth and technical development in the U.S. equity options market, a market in constant evolution.

During 2005, our Information Technology Solutions team developed and equipped the Exchange with SOLA, a new electronic trading software that ranks among the most efficient in the world. We also implemented the regulatory and operational structures needed to offer new clearing services to the over-the-counter market. These initiatives and the Exchange’s other ongoing projects will contribute to its future growth,” concluded Mr. Bertrand.

The Montréal Exchange has also issued another news release today titled: The Boston Options Exchange selects SOLATM - a new trading platform created by the Montréal Exchange.