CHICAGO, Sep 30, 2004 /PRNewswire-FirstCall via COMTEX/ -- Archipelago Holdings, Inc. (PCX: AX), owner and operator of the Archipelago Exchange(SM) (ArcaEx(R)), today announced that the company has been named a component of several Russell Indexes, including the Russell 2000(R), following the company's recent initial public offering on August 12, 2004. The addition of Archipelago was made possible through Russell's new policy of reconstituting indexes quarterly to incorporate recent IPOs.

Launched in 1984, Russell produces a family of 21 U.S. equity indexes. The indexes are market cap-weighted and include only common stocks incorporated in the United States and its territories. All indexes are subsets of the Russell 3000(R) Index, which represents approximately 98% of the investable U.S. equity market and is constructed to provide a comprehensive, unbiased and stable barometer of the broad market, completely reconstituted annually to ensure new and growing equities are reflected.

"Incorporation in multiple Russell Indexes is extremely valuable to Archipelago as a recent IPO," said Jerry Putnam, CEO of Archipelago. "It's exciting to surround ourselves with the leading performers in financial services and across industries, a distinction we're very proud to have."

    Archipelago will be added to the following indexes on September 30:

    * Russell 2000(R) Index

    * Russell 3000(R) Index

    * Russell 2000(R) Value Index

    * Russell 2000(R) Growth Index

    * Russell 3000(R) Value Index

    * Russell 3000(R) Growth Index

    * Russell 2500(TM)

    * Russell 2500(TM) Growth

    * Russell 2500(TM) Value

    * Russell Small Cap Completeness(TM) Index

    * Russell Small Cap Completeness Value(TM) Index

    * Russell Small Cap Completeness Growth(TM) Index

According to Russell, 48 IPOs are expected to be added across various indexes in the first quarterly rebalance on September 30. Russell announced the rebalance policy changes on September 15, 2004.

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.

About Russell

Russell Investment Group, a global leader in multi-manager investment services, provides investment products and services in more than 35 countries. Russell manages more than $107 billion in assets and advises clients worldwide representing more than $1.8 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo.

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

Archipelago Contacts: Margaret Nagle - Press
312-442-7083
Patrick Murphy - Investor Relations
312-442-7005

SOURCE Archipelago Holdings, Inc.

Margaret Nagle - Press, +1-312-442-7083; or Patrick Murphy - Investor Relations, +1-312-442-7005, both of Archipelago Holdings, Inc.

http://www.archipelago.com