PCX Holdings in Proposed Acquisition by Archipelago Holdings, Inc.

January 3, 2005

Cleary Gottlieb is representing Citigroup Global Markets Inc. as financial advisor to PCX Holdings, Inc. on the proposed acquisition of PCX Holdings, parent company of the Pacific Exchange and PCX Equities, Inc., by Archipelago Holdings, Inc., the parent company of the Archipelago Exchange. The stock and cash deal announced today is valued at approximately $50 million.

In addition to the options business, Archipelago Holdings would also acquire the self-regulatory organization of the Pacific Exchange, as well as its 20 percent ownership interest in the Options Clearing Corporation. Upon completion of the merger, PCX Holdings, the Pacific Exchange and PCX Equities will operate as wholly-owned subsidiaries of Archipelago Holdings.

Archipelago Holdings operates the Archipelago Exchange, the first open all-electronic stock market in the United States. The Archipelago Exchange operates as the exclusive equity trading facility of the Pacific Exchange.