CBOE Membership Elects Eight Individuals To Board of Directors - Nine Individuals To Member Committees

The Chicago Board Options Exchange (CBOE), the world's largest options exchange, announced that in its annual election that concluded yesterday, the membership elected eight individuals to its Board of Directors, with five directors serving three-year terms, one director serving a two-year term, and two directors serving one-year terms. Five of the eight directors elected to the Exchange's board are public representatives. The newly elected board of directors' terms will be effective when the board conducts its first meeting in January 2003.

The CBOE Board consists of 22 directors - eleven industry (member) directors and eleven non-industry (public) directors, plus the Chairman and Chief Executive Officer of the Exchange, William J. Brodsky. In August, the CBOE membership adopted amendments to its constitution intended to increase the role of public directors in the governance of the Exchange. The Securities and Exchange Commission (SEC) also approved the measure. Previously, the Exchange maintained fourteen industry and eight non-industry directors. These election results reflect the new board composition.

Five candidates were elected as public directors: James R. Boris, Chairman, JB Capital Management, LLC, Former Chairman and Chief Executive Officer, Everen Securities, Inc. and Everen Capital Management; Scott P. Marks, Jr., Former Vice-Chairman and Board Member, First Chicago NBD Corporation; and Eugene S. Sunshine, Senior Vice President for Business and Finance, Northwestern University, were each elected as public directors to serve three-year terms. Re-elected as public directors were Robert J. Birnbaum, Former President and Chief Operating Officer, New York Stock Exchange, to a two-year term and Silas Keehn, Former President and Chief Executive Officer, Federal Reserve Bank of Chicago, to a one-year term.

Three individuals were elected to the board as industry (member) directors: Edward T. Tilly, Botta Capital Management, LLC, as a floor director serving a three-year term; William R. Power, as a lessor director serving a three-year term; and Thomas H. Patrick, Jr., Managing Director, Merrill Lynch Pierce Fenner & Smith, Inc., was re-elected as an off-floor director to serve a one-year term.

Elected to the Nominating Committee for three-year terms are: Kenneth D. Mueller, DPM Designee, Equitec-Schwartz, LLC; Gerald T. McNulty, Floor Broker, Merrill Lynch Pierce Fenner & Smith, Inc.; and Lawrence J. Blum, CBOE lessor member. Additionally, two public members were elected to the Nominating Committee: Donald P. Jacobs, Dean Emeritus, Northwestern University, Kellogg School of Management, serving a three-year term and Newton N. Minow, Senior Counsel, Sidley Austin Brown & Wood, serving a two-year term.

Four candidates were elected to the MTS Appointments Committee, which is responsible for the selection, oversight and removal of CBOE Designated Primary Market Makers (DPMs). CBOE members Anthony P. Arciero, CBOE Market Maker; Richard W. Fuller, Market Maker, G-Bar Limited Partnership; and Joseph A. Frehr, Floor Broker, JOH Options, Inc. were each elected to serve three-year terms. William J. O'Keefe, CBOE Market Maker, was elected to serve a one-year term.

CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, visit the CBOE website at www.cboe.com.