ISE Launches Wal-Mart Supplier Index ::

December 19, 2006

ISE Launches Wal-Mart Supplier Index

Unique, Relationship-Based Index Tracks Performance of Suppliers to World’s Leading Retailer


NEW YORK--(BUSINESS WIRE)--Dec. 19, 2006--The International Securities Exchange (NYSE: ISE), in collaboration with Revere Data LLC, today announced the development and launch of the ISE-Revere Wal-Mart Supplier Index (Ticker: WMX). This unique, relationship-based index allows investors to track the overall price performance of companies that derive a significant portion of their revenues from supplying Wal-Mart Stores Inc., the world’s leading retailer. The index value is accessible from leading market data vendors as well as on the ISE website. ISE plans to list options on the index in the coming weeks.

Wal-Mart Supplier Index (WMX)
----------------------------------------------------------------------
Bloomberg WMX
----------------------------------------------------------------------
ILX WMX
----------------------------------------------------------------------
Reuters .WMX
----------------------------------------------------------------------
Yahoo! Finance ^WMX
----------------------------------------------------------------------

NOTE TO EDITORS: There is a caret preceding the symbol listed on the Yahoo! Finance line in the above chart. This symbol may not appear properly in some systems.

For the thirty companies included in the ISE-Revere Wal-Mart Supplier Index, annual revenues attributable to Wal-Mart range from 74% to 16%. Among the industries represented by companies in the index are diversified consumer products, entertainment products and services, packaged consumer foods and snacks, and healthcare and pharmaceuticals. The index portfolio consists of such well-known companies as Energizer Holdings, Inc. (Ticker: ENR), General Mills, Inc. (Ticker: GIS), Mattel, Inc. (Ticker: MAT), and Playtex Products, Inc. (Ticker: PYX).

Bruce D. Goldberg, ISE’s Chief Marketing Officer, said, “The markets have carefully tracked Wal-Mart’s performance due to its unique position as the world’s leading retailer. The ISE-Revere Wal-Mart Supplier Index provides investors with a related performance benchmark that may also be viewed as a technical indicator. We are very pleased to again have partnered with Revere to add another innovative product to ISE’s index portfolio.”

ISE and Revere launched the ISE-Revere Natural Gas Index (Ticker: FUM) in October 2006. Both of these new indexes respond to increased investor interest in sector-specific products that more purely reflect a market segment.

Kevin O’Brien, Chief Executive Officer of Revere Data, noted, “By applying Revere’s methodology to define sectors, investors now have the means to capture movement in these supplier companies. Revere analyzes companies such as Wal-Mart to search, discover, and classify their products and services, focused lines of business and key business relationships. Through our partnership with ISE, we hope to offer investors purer vehicles to express a point of view on a particular market segment.”

Using the Revere Relationships(TM) database, ISE and Revere Data ranked eligible securities for the index according to percentage of revenue derived from supplying Wal-Mart. Candidates were further screened by certain market capitalization and liquidity requirements. The table below provides the complete list of index components.

Components of ISE-Revere Wal-Mart Supplier Index (Ticker: WMX)

Symbol Component Name % Revenue from WMT
----------------------------------------------------------------------
  1. HDL Handleman Company 74.0
  2. COT Cott Corporation ( USA ) 40.0
  3. CHTT Chattem Inc. 34.0
  4. CNXS CNS, Inc. 31.0
  5. CALM Cal-Maine Foods, Inc. 30.9
  6. DLM Del Monte Foods Company 29.0
  7. PYX Playtex Products, Inc. 28.0
  8. LF LeapFrog Enterprises, Inc. 28.0
  9. ICON Iconix Brand Group Inc. 27.7
  10. CLX The Clorox Company 27.0
  11. PRGO Perrigo Company 26.0
  12. HELE Helen of Troy Limited 25.0
  13. LCUT Lifetime Brands Inc. 24.0
  14. ATVI Activision, Inc. 23.0
  15. PBH Prestige Brands Holdings, Inc. 22.5
  16. HAS Hasbro, Inc. 21.0
  17. CSTR Coinstar, Inc. 20.9
  18. TR Tootsie Roll Industries, Inc. 20.8
  19. NAVR Navarre Corporation 20.0
  20. MAT Mattel, Inc. 19.6
  21. CENT Central Garden & Pet Co. 19.0
  22. SPC Spectrum Brands, Inc. 19.0
  23. CHD Church & Dwight Co., Inc. 18.0
  24. LNCE Lance, Inc. 18.0
  25. ENR Energizer Holdings, Inc. 17.5
  26. SMG The Scotts Miracle-Gro Co. 17.0
  27. PLB American Italian Pasta Company 17.0
  28. DMND Diamond Foods, Inc. 16.5
  29. GIS General Mills, Inc. 16.0
  30. KTO K2 Inc. 16.0

ISE Background

International Securities Exchange Holdings, Inc. (NYSE: ISE), through its subsidiaries, operates a family of innovative securities markets. ISE is founded on the principle that technology and competition create better, more efficient markets for investors and consists of an options exchange, a stock exchange and an alternative markets platform. ISE continually enhances its trading systems and develops new products to provide investors with the best marketplace and investment tools to trade smarter.
ISE developed a unique market structure for advanced screen-based trading systems and in May 2000 launched the first fully-electronic US options exchange. Currently, ISE operates the largest U.S. equity options exchange and is among the leading options exchanges in the world. ISE offers index options, including a portfolio of proprietary index products, and enhanced market data products for sophisticated investors. ISE FX Options(TM) are slated to launch in 2007.

ISE Stock Exchange, launched in September 2006 with strategic partners, includes an innovative MidPoint Match(TM) platform which offers investors continuous price improvement. MidPoint Match was integrated with a fully-displayed Best Bid Offer market in December 2006.

ISE’s alternative markets business currently consists of an events market trading platform known as Longitude.  Longitude’s patented and proprietary technology provides a unique parimutuel structure for derivatives auctions which results in greater trading and pricing flexibility for market participants.

For more information about ISE and its options exchange, visit www.iseoptions.com and for more information about ISE Stock Exchange, visit www.isestock.com. Additionally, to learn more about ISE alternative markets technology, visit www.longitude.com.

About Revere

Revere Data, LLC, is a leading provider of financial information services that help investors better understand the cornerstone of all great companies: the products and services they sell. Revere goes deep inside companies to search, discover and classify their products and services, focused lines of business, and key business relationships. The patented Revere Hierarchy(TM) classifies companies in nine times as many sectors as is commonly used by investment professionals on Wall Street, thereby delivering a more precise and deeper view of the market. Revere Relationships(TM) provides visibility into key customer, supplier, competitor and strategic partner relationships for thousands of publicly traded US companies. Revere offers a full suite of data, online research, and index services for the institutional investment community. For more information, please visit www.reveredata.com.

Disclaimer

The ISE-Revere Wal-Mart Supplier Index was jointly developed by ISE and Revere Data, LLC (“Revere”). Revere, an independent and privately owned provider of research data and investment analytics, provides specific research and support for the Wal-Mart Supplier Index.

Wal*Mart(R) is a registered trademark of Wal-Mart Stores, Inc. The Wal-Mart Supplier Index (“WMX”) is not sponsored, endorsed, sold or promoted by Wal-Mart Stores, Inc., and Wal-Mart Stores, Inc. makes no representation regarding the advisability of investing in WMX. Wal-Mart Stores, Inc. has not licensed or authorized ISE to (i) engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on WMX or (ii) to use any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on WMX or with making disclosures concerning options on WMX under any applicable federal or state laws, rules or regulations. Wal-Mart Stores, Inc. does not sponsor, endorse, or promote such activity by ISE, and is not affiliated in any manner with ISE.

Forward Looking Statements

Certain matters discussed in this press release are “forward looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements, to be materially different from those contemplated by the forward looking statements. We undertake no ongoing obligation, other than that imposed by law, to update these statements. Factors that could affect our results, levels of activity, performance or achievements and cause them to materially differ from those contained in the forward looking statements can be found in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q, as amended.

CONTACT:


MEDIA:
International Securities Exchange
Molly H. McGregor, 212-897-0275
mmcgregor@iseoptions.com

or

Revere Data LLC
Mendel Communications
Bill Mendel, 212-397-1030
bill@mendelcommunications.com

or

INVESTORS:
International Securities Exchange
Thomas Gibbons, 212-897-8167
tgibbons@iseoptions.com
SOURCE: The International Securities Exchange