TSX Group – Arbitration Decision Re: TSX Inc.

TSX Group Inc. announced today that, as previously disclosed, TSX Inc., a subsidiary of TSX Group Inc., is a defendant in arbitration proceedings commenced by Ashton Technology Canada Inc. (Ashton) on June 11, 2003. The arbitration was divided into two parts: a liability phase and a damages phase. On September 20, 2004, the arbitrator made an award against TSX Inc. in the liability phase. The arbitrator held that TSX Inc. had breached an agreement with Ashton dated June 7, 2000 to develop and integrate an eVWAP facility, and held that Ashton is entitled to recover damages and reasonable costs sustained as a result of that breach.

TSX Inc. is reviewing the award and evaluating its options. No date has yet been set for the damages phase of the arbitration. There has been no production or discovery for the damages phase, and the damages that TSX Inc. is liable to pay to Ashton have yet to be quantified. While TSX Group Inc. is therefore not yet able to fully evaluate what those damages are likely to be, it currently expects that they will be significantly less than the US $30 million originally claimed and will not have a material impact on annual consolidated earnings.

About TSX Group Inc. (TSX-X)
TSX Group operates Canada's two national stock exchanges serving the senior equity and public venture equity markets as well as NGX, a leading North American exchange for the trading and clearing of natural gas and electricity contracts. TSX are the initials attached to the core equity operations of the TSX Group (www.tsx.com): Toronto Stock Exchange, TSX Venture Exchange, TSX Markets, TSX Datalinx, TSX Technologies. TSX Group is headquartered in Toronto and maintains offices in Montreal, Winnipeg, Calgary and Vancouver.