National Stock Exchange Announces Partnership With Leading Wall Street Firms

National Stock Exchange (NSX^SM) today announced it has received equity investments from six leading Wall Street firms and ECNs.

The firms - Bear Stearns, Bloomberg Tradebook, Citigroup Corporate and Investment Banking, Credit Suisse, Knight Capital Group and Merrill Lynch -- have each purchased an interest in NSX Holdings, Inc., the for-profit holding company resulting from NSX's recent demutualization. Each of these investors separately acquired a minority equity stake, which amounts in aggregate to just over 50% of the voting stock of NSX Holdings. The transaction closed on September 5, 2006.

"We appreciate the commitment we have received from these industry leaders and the confidence it signals in NSX's value in a post-Reg. NMS environment," said NSX Chief Executive Officer and President David Colker. "Concerns about cost and service due to industry consolidation have triggered strong demand for a high-tech, low-cost alternative, and NSX is positioned to assume that role."

Anticipating this rising demand, over the last year NSX has fully demutualized into a for-profit holding company structure, and built a new proprietary state-of-the-art technology platform, NSX BLADE^SM, which is expected to be launched in the near future. This new business strategy was overwhelmingly endorsed by membership vote in January 2006.

NSX BLADE will offer unprecedented speed, strict price-time priority, and highly competitive exchange pricing. In addition, NSX will provide an order delivery function in NSX BLADE, as well as an NASD/NSX Trade Reporting Facility.

"We believe our new business model will be the alternative the industry is seeking - the biggest tent in which everyone is welcome to trade," Colker said. "In the securities industry, as in any industry, competition drives innovation," said C. Thomas Richardson, Managing Director, U.S. Equities, Citigroup Corporate and Investment Banking. "Today, market structure changes and industry-wide consolidation are dramatically changing the industry landscape, presenting new opportunities for organizations flexible enough to adapt to the changing needs of the investment community. NSX's new business model is a great example of an institution re-inventing itself to best serve the customer."