CHICAGO, Sept. 15 /PRNewswire-FirstCall/ -- Today, Judge Denise Cote of the Southern District of New York issued an order granting Archipelago's motion to dismiss the Nasdaq Stock Market, Inc.'s common-law claims and ruled that ArcaEx has the right to facilitate trading of the Nasdaq-100 Tracking stock, QQQ; and, that Nasdaq had no rights in the QQQ that would permit Nasdaq to restrict trading by ArcaEx through imposing a licensing regime. In the order, Judge Cote denied Archipelago's motion to dismiss Nasdaq's claims against Archipelago's advertisements, though stated that "NASDAQ's Lanham Act claims appear weak."

We are pleased with the court's ruling vindicating our position that trading QQQ on ArcaEx is proper and legal, and, further, believe that the ruling is important and beneficial for America's capital markets and investors.

In October 2003, Nasdaq filed suit against Archipelago Holdings LLC, Archipelago Exchange LLC, Pacific Exchange, Inc., and PCX Equities, Inc. in the United States District Court for the Southern District of New York. Nasdaq asserted common-law claims that we engage in unfair competition, unjust enrichment, intentional interference with prospective economic advantage, and misappropriation of the intellectual property of Nasdaq, because we allow investors to trade QQQ on ArcaEx without paying Nasdaq a licensing fee. NASDAQ further claimed that several of Archipelago's old advertisements, which used the word "NASDAQ" or "QQQ," violated Nasdaq's trademark rights under the Federal Lanham Act. In addition to money damages, NASDAQ had sought to prevent Archipelago from allowing trading of QQQ on ArcaEx without a license from NASDAQ. Today's order is subject to appeal to the United States Court of Appeals for the Second Circuit.

Archipelago Holdings, Inc. (PCX: AX) owns and operates the Archipelago Stock Exchange.

Certain statements in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on Archipelago's current expectations and involve risks and uncertainties that could cause Archipelago's actual results to differ materially from those set forth in the statements. There can be no assurance that such expectations will prove to be correct. Factors that could cause Archipelago's results to differ materially from current expectations include: general economic and business conditions, industry trends, competitive conditions, regulatory developments as well as other risks identified in Archipelago's Prospectus, dated August 12, 2004, filed with the Securities and Exchange Commission, which is available on Archipelago's website.

     Nevin Reilly

     Senior Account Executive

     Sloane & Company

     212-446-1893 (phone)

     212-702-9103 (fax)

     http://www.sloanepr.com

SOURCE Archipelago Holdings, Inc.

CONTACT: Nevin Reilly, Senior Account Executive, Sloane & Company,
+1-212-446-1893, fax, +1-212-702-9103, for Archipelago Holdings, Inc.