CHICAGO, Sept. 17 /PRNewswire-FirstCall/ -- Judge Ronald Bartkowitz of the Circuit Court of Cook County, Illinois, dismissed with prejudice all claims against Archipelago Holdings, Inc., f/k/a Archipelago Holdings, LLC, and Archipelago Exchange, LLC (ArcaEx), in a lawsuit filed by Lewis Borsellino and I.M. Acquisitions, LLC on March 23, 2004.

In the lawsuit, Borsellino and I.M. Acquisitions alleged that certain members of Chicago Trading and Arbitrage, LLC, an entity in which Mr. Borsellino claimed an interest, wrongfully diverted assets for the benefit of Archipelago Holdings and ArcaEx. Archipelago Holdings and ArcaEx filed a motion to dismiss these claims on May 21, 2004. The Circuit Court's ruling was made in response to requests from Mr. Borsellino and I.M. Acquisitions to voluntarily dismiss Archipelago Holdings and ArcaEx with prejudice.

About Archipelago

Archipelago Holdings, Inc. (PCX: AX) owns and operates the Archipelago Exchange (ArcaEx). ArcaEx is the first totally open all-electronic stock market in the United States. Through its alliance with the Pacific Exchange, Inc., Archipelago operates ArcaEx as the exclusive equities trading facility of PCX Equities, Inc. Through ArcaEx, Archipelago customers can trade over 8,000 equity securities, including securities listed on the New York Stock Exchange(R), Nasdaq(R), American Stock Exchange(R) and Pacific Exchange(R). ArcaEx is regulated by the Pacific Exchange. The Archipelago ECN, a precursor to ArcaEx, was one of the four original ECNs, formed in December 1996 with Townsend Analytics.

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 the company's current expectations and involve risks and uncertainties that could cause the company'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 the company's results to differ materially from current expectations include: general economic and business conditions, industry trends, competitive conditions, regulatory developments and the additional factors and risks contained in the Company's Prospectus and other documents filed with the Securities and Exchange Commission, which are available on the company's website

Contact Names:

Margaret Nagle 312-442-7083

SOURCE Archipelago Holdings, Inc.
09/17/2004
CONTACT: Margaret Nagle for Archipelago Holdings, Inc., +1-312-442-7083
Web site: http://www.archipelago.com
(AX)